Stocks End Sharply Higher

Updated from 4:04 p.m. EST

Stocks rallied Thursday, as solid retail data relieved some concern about a downturn in consumer spending ahead of the holiday season. Investors also embraced IBM's (IBM Quote) profit affirmation and a megamerger in the consumer lending sector.

The Dow Jones Industrial Average ended up 144 points, or 1.7%, at 8542.13, while the Nasdaq rose 50 points, or 3.7%, to 1411.5. The S&P 500 gained 22 points, or 2.5%, to 904.3.

The government said retail sales were unchanged in October, reflecting weakness in auto sales. Excluding those, sales rose 0.7% -- a better-than-expected result that could bode well for the holidays, although the number was boosted by the onset of colder weather. Separately, new claims for jobless benefits fell to 388,000 in the latest week, also a slightly stronger-than-expected number. ...