Stocks rose sharply after Spain released its official 2013 budget. Spain detailed an austerity plan that focuses on spending cuts instead of tax increases. China also helped boost markets early in the day, following talk that the People's Bank of China may take further easing measures. Initial jobless claims last week fell by 26,000 to 359,000, the lowest since late July, while revised government figures found the U.S. economy created 386,000 additional jobs from March 2011 to March 2012 than previously thought. Also, Q2 GDP growth was revised downward to 1.3% from 1.7% expected. Pending home sales, which were expected to increase by 0.5%, actually dropped by 2.6%. Orders for durable goods slowed to negative13.2%, more than expected negative 5.3% in August. Tech stocks followed the broader market and closed mostly in the green. Yahoo rose 2.75% after Goldman Sachs reinstated coverage of Yahoo with a buy rating and $22-a-share price target. In the evening trade Research In Motion leapt 20.45% after the co. issued quarterly results that exceeded expectations. Micron Technology rose 0.25% after the co. reported a fiscal fourth-quarter loss almost in line with expectations. Facebook added 1.23% after the co. unveiled a new feature that will enable users to give “real gifts” to their Facebook friends. Also, Nike slumped 2.4% as the co. reported gross margin in its fiscal first quarter dropped to 43.5% from 44.3%, the seventh consecutive quarterly decline on a year-to-year basis.
