Stocks snap back

Major gauges advance in the early going, as investors respond to strong global markets.

March 8 2007: 10:02 AM EST

NEW YORK (CNNMoney.com) -- Stocks jumped higher early Thursday, as investors welcomed strength in global markets and seemed to take in stride some ho-hum February retail sales and rising interest rates overseas.

The Dow Jones industrial average (up 83.95 to 12,276.40, Charts) gained 0.6 percent in the early going

The broader S&P 500 (up 11.81 to 1,403.78, Charts) index added 0.8 percent, while the tech-heavy Nasdaq (up 22.90 to 2,397.54, Charts) composite gained 0.8 percent.

Stocks slipped Wednesday, but declines were pretty modest considering the previous session's big runup.

That modest retreat after a big rally helped set up stocks for another advance early Thursday.

Helping early sentiment: strength in international markets. European markets rallied at midday, while most Asian markets ended higher.

Wal-Mart sales sag in February

In corporate news, a variety of retailers reported February sales at stores open a year or more, also known as same-store sales.

Among the standouts, Wal-Mart Stores (down $0.40 to $47.53, Charts) said same-store sales rose 0.9 percent, missing forecasts for a rise of 1.5 percent. Separately, the Dow component announced that it was raising its annual dividend by 31 percent. Shares declined around 1 percent.

On the upside, high-end retailer Nordstrom (up $2.20 to $52.62, Charts) said sales jumped 9.1 percent, sending shares up sharply in early trade Thursday.

The number of Americans filing new weekly jobless claims fell more than expected. However, the report was overshadowed by anticipation about Friday's monthly employment figures.

In currency trading, the dollar rallied versus the yen and the euro. The European currency was weaker after the European Central Bank raised interest rates by 25 basis points to 3.75 percent. The Bank of England held rates steady at 5.25 percent.

Treasury prices slipped, raising the yield on the 10-year note to 4.52 percent from 4.48 percent late Wednesday. Treasury prices and yields move in opposite directions.

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