U.S. MARKET AVERAGES

The stock markets opened higher on retail sales and economic data easing inflation concerns, with the three major averages advancing through the first trading hour. After significant losses during the previous session, the Dow and S&P 500 were each up by more than 0.7% and the Nasdaq led the rally, climbing by more than 0.9%.

The Commerce Dept. reported that consumer prices rose just 0.1% in October, far better than September's 0.9% jump. Strong holiday shopping season is expected on data showing incomes rise of 0.4% and spending increase of 0.2%.

A decrease in initial jobless claims also lent support to stocks. The Labor Department said first-time jobless claims fell to 320,000 last week, down from 335,000 the week before.

Technology stocks were among the drivers of Thursday''s early gains. The semiconductor sector rose 1.8%, reaching a new high. Teradyne (TER: chart), National Semiconductor (NSM: chart) and Maxim Integrated Products (MXIM: chart) led the blue-chip rally.

Energy stocks climbed in early trading, including a 1.4% advance in the oil sector. Following two weak sessions, the gold sector rebounded, climbing by 2.6%.

The nation's largest retailer. Wal-Mart Stores (WMT: chart) reported a 4.3% rise in its November comparable sales, matching an estimate it released last week. Total sales for the month came in at $25.768 billion, the company said, up 9.4% from last year''s mark of $23.544 billion. For December, Wal-Mart predicted comparable sales growth of 2%-4%.

Costco (COST: chart), the largest U.S. warehouse club operator, posted a 6% rise in November sales at its stores open at least a year, missing analyst forecast of a 7.2% increase.

United Retail Group (URGI: chart) reported a 5% growth in same-store sales in November. JoS A. Bank Clothiers (JOSB: chart) posted a 3.8% rise in same-store sales.

Yum! Brands (YUM: chart) confirmed its earnings guidance for fiscal 2005, saying it still expects a profit of $2.64 per share, in line with analysts'' consensus. Looking ahead to fiscal 2006, the company predicted worldwide system-sales growth of 5%-6%, with a 2%-3% increase in U.S. blended same-store sales.

MOVERS AND SHAKERS

Rigel Pharmaceuticals (RIGL: chart) released disappointing results from a clinical study of R112, a potential intranasal therapy for the treatment of allergic rhinitis. In the trial, treatment with R112 failed to show a statistically significant difference from placebo treatment in improving nasal allergy symptoms. The stock dropped nearly 63%.

MTC Technologies Inc (MTCT: chart) projected Q4 earnings of 34 cents to 37 cents a share on revenue of $96.8 million to $100.8 million compared with a previous forecast of 32 to 40 cents a share on revenue of $108.7 million to $114 million. The company sees 2005 earnings of $1.34 to $1.37 a share on revenue of $373 million to $377 million. MTC also said that the planned acquisition will not occur this year, as conditions connected with it were not satisfied. Company’s shares fell 11.2%.

ECONOMIC NEWS

The Commerce Dept. said that personal income rose 0.4 percent in October after surging up 1.7 percent in September. The increase came in slightly below economist estimates of a 0.5 percent increase.

The report also showed that personal spending increased by 0.2 percent in October following a 0.5 percent increase in September. The personal spending growth came in line with economist estimates.

The Commerce Dept. noted that its index of consumer prices excluding food and energy rose at an annual rate of 1.8 percent in October, down from a 2.0 percent rate of growth in September. This marked the slowest pace of growth since February 2004

The number of people filing for first-time unemployment benefits declined in the most recent week and came in below economists'' expectation.

The U.S. Department of Labor revealed Thursday that initial jobless claims came in at 320,000 for the week ended on November 26, a decline of 17,000 from the previous week''s revised total. Economists had expected a level of around 323,000.

The 4-week moving average for initial claims, which flattens out the week-to-week volatility, fell 1,250 to 322,500. Continuing claims for the week ended November 19, the most recent week for which the government has data, dropped 24,000 to 2.767 million.

INTERNATIONAL MARKET NEWS