US STOCKS surged Thursday

U.S. stocks rose sharply Thursday.

The Labor Department said applications for unemployment benefits fell by 12,000 to 334,000 last week. The four-week moving average declined to 345,250 last week from 352,500. Separate numbers from the Commerce Department had retail sales climbing 0.6% in May, the largest jump in three months, and coming after a 0.1% rise in April.

The Dow Jones Industrial Average was lately up 134.91 points, or 0.9%, at 15,130.14.

The Standard & Poor’s 500 index rose 17.07 points, or 1.1%, to 1,629.59.

The Nasdaq Composite index added 33.26 points, or 1%, to 3,433.70.

Gannett Co. Inc. shares rallied 30% after the publisher of USA Today agreed to purchase television company Belo Corp. for about $1.5 billion.

Safeway Inc. jumped 7.9% after the grocer said it would sell its stores in Canada and use the proceeds to pay down debt and repurchase stock.

The World Bank cut its global economic-growth forecast to 2.2% for 2013, down from a 2.4% projection issued in January.

Royal Bank of Scotland Group Plc tumbled 3.3% after saying Chief Executive Officer Stephen Hester will leave at the end of the year as the British government prepares to sell its 81% stake in the lender.  

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