Stocks Surge On Jobs Data, Cisco Forecast

TIM PARADIS

NEW YORK (AP) — A bright forecast from Cisco Systems and upbeat economic news sent stocks soaring Thursday and propelled the Dow Jones industrials back above 10,000. The rally, coming a day before the government's October employment report, showed that investors are regaining their optimism about an economic recovery.

The Dow bolted up 203 points, or 2 percent, while the Nasdaq composite index, led by Cisco's outlook, rose nearly 2.5 percent. The market's move continued a streak of volatility that began last month, but this latest surge was powered not by a single event, but by a wave of good news:

— Cisco Systems Inc. boosted hopes for the technology industry after the largest maker of computer-networking gear forecast revenue growth for the first time in a year. The forecasts of CEO John Chambers carry big weight on Wall Street and his announcement that the company would begin hiring workers injected a jittery market with confidence.

— The government said the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week, the lowest level since January and fewer than economists had forecast. Initial claims are considered a gauge of the pace of layoffs.