US Stocks rises as Euro plans advance

In the first hour of trading Thursday,the S&P fell as much as 0.8 per cent before rebounding to rise as much as 0.4 per cent as investors reacted to headlines out of Europe.

European Commission President Jose Manuel Barroso said the EU’s top executive body proposed a coordinated recapitalization of banks amid the region’s sovereign debt crisis. Officials said nothing was finalized.

Meanwhile,ECB President Jean-Claude Trichet said the economic outlook remains subject to particularly high uncertainty and intensified downside risks after the ECB kept interest rates on hold,though some investors had hoped for a cut. and

Anxiety over the region’s lingering debt crisis has pressured equities and pushed the S&P briefly into bear market territory earlier this week.

Markets have been whipsawed on a near-daily basis by Europe. People thought there would be more support for Europe coming out of institutions like the ECB,and keeping rates steady is another curveball,said Michael Mullaney,a portfolio manager who helps manage $9.5 billion at Fiduciary Trust Co in Boston.

This is a very fickle market,especially since there’s fatigue after two hefty days in a row,Mullaney added. We’re trading not just on news,but also on mood.

The Dow Jones industrial average was up 43.21 points,or 0.39 per cent,at 10,983.16. The Standard & Poor’s 500 Index was up 6.69 points,or 0.58 per cent,at 1,150.72. The Nasdaq Composite Index was up 20.72 points,or 0.84 per cent,at 2,481.23.

Yahoo Inc fell 4.8 per cent to $15.15 after advancing late Wednesday. Microsoft Corp may make another bid for Yahoo,Reuters reported citing sources. A deal between the two fell apart in 2008.

US-listed shares of Research in Motion Ltd rose 1 per cent to $23.85 on continued speculation the BlackBerry maker could be acquired.

Apple Inc rose 1 per cent to $381.75 a day after co-founder Steve Jobs,the driving force behind the creation of the iPod,iPhone and iPad,died at the age of 56.

New claims for unemployment benefits rose less than expected last week,hinting at an improved labor market a day before the closely watched September non-farm payrolls report.

On Friday,the government will report non-farm payrolls data,which is expected to show a return to growth after flat growth in August. On Wednesday,a report from payrolls processor ADP showed overall private payrolls rose by 91,000,topping forecasts.