U.S. MARKET AVERAGES

Stocks gained ground on Thursday, rebounding from two weak sessions. Averages rose on economic data, which offered a broadly positive take on economy easing concerns over Katrina’s and Rita’s impact on it. Although stocks have recently weakened, nine of ten economic sectors trade in the positive with the biggest boost, provided by the Tech sector as expectations of strong earnings and outlook from Hewlett-Packard helped offset the 46% decline of Apllied Materials.

A report, released by the Fed Reserve, informed that U.S. industrial production rose unexpectedly by 0.9% in October, fueled by manufacturing output.

The Labor Department reported that initial jobless claims dropped to 303,000, their lowest level since April, versus expected decline of 322,000.

In less positive report, the Department of Commerce said that new construction of U.S. homes fell more than expected in October. The decline stands at 5.6% to seasonally adjusted annual rate of 2,014 million. Building permits dropped 6.7%.

The broker/dealer space is moving to the upside, with a gain of 1.3%, following two sessions of profit-taking. The networking sector is posting a gain of 1.4%, rebounding from recent declines.

Altria (MO: chart) is the worst performing Dow component, falling by 2.4% on a downgrade from Goldman Sachs. Continuing its Thursday''s slide, the stock has reached its lowest level since mid-October. GM (GM: chart) remains below the unchanged mark, despite leaving intraday lows.

Hewlett-Packard (HPQ: chart), expected to report after the closing bell, is among the biggest supports to the Dow, climbing by 1.5%. Intel (INTC: chart) and Procter & Gamble (PG: chart) are also strong, with gains of 1.2% and 1.1%, respectively.

Google (GOOG: chart) has broken above the $400 mark to set a new 52-week high. Yahoo (YHOO: chart) has added to its recent gains to extend its peak. Earnings-inspired Intuit (INTU: chart) has jumped to a fresh high of 7%

Taro Pharmaceutical Industries (TARO: chart) has broken to a new 52-week low with its nearly 30% earnings-related decline. Movie Gallery (MOVI: chart) is extending its lows, adding to a decline that started in late June.

MOVERS AND SHAKERS

The Children''s Place Retail Stores (PLCE: chart) boosted its 2005 profit outlook after posting strong third-quarter results. The company posted sales that were 57% more than a year ago. Its stock upped 3.5% yesterday.

The retailer Williams-Sonoma (WSM: chart) also lifted the bottom of its 2005 profit forecast range after it posted third-quarter results that were slightly above Wall Street estimates. The company’s stock gained 1.4% yesterday.

The food and tobacco leader Altria Group Inc. (MO: chart) was downgraded by Goldman Sachs to “in-line” from “outperform”. The finacial broker said the break-up of the company may come much later than expected. Altria’s stock dropped 2.7%.

The oil company ConocoPhillips (COP: chart) was downgraded by J.P. Morgan to “neutral” from “overweight”. The brokerage said the company’s higher capital spending may pressure returns, while production delays its peer group. J.P.Morgan also told clients that the company is too big to purse smaller upstream projects that would add meaningful volume growth to its smaller domestic peers. Conoco’s stock lost 0.6%.

ECONOMIC NEWS

Industrial production rose during October, according to data released by the Federal Reserve Thursday, bouncing back from a slide in September that had been caused in large part by hurricanes and a strike at Boeing.

The Federal Reserve reported that industrial production advanced by 0.9% in October, reversing a portion of September''s 1.5% decline. Economists had expected an increase of about 1%. The central bank attributed a large portion to the rise in output to hurricane-related recoveries and the resolution of a strike at a major aircraft producer, by which it meant Boeing.

The Department of Labor released its report on initial jobless claims in the week ended November 12 on Thursday, showing a bigger than expected decrease.

The report showed that jobless claims fell to 303,000 from the previous week''s revised figure of 328,000. Economists had expected claims to edge down to 325,000 compared to the 3326,000 originally reported for the previous week.