US Stocks gain after retail sales report

NEW YORK - A dose of good economic news and a buyout offer for Anheuser-Busch Cos. gave Wall Street a big early rebound Thursday, sending the Dow Jones industrials jumping more than 100 points. Treasury prices fell, driving yields higher, as investors returned to stocks.

News of a management shakeup at Lehman Brothers Holdings Inc. sent that company's stock down $1.53, or 6.4 percent, to $22.22. Lehman, which earlier this week posted a quarterly loss of $2.8 billion, ousted its chief financial officer and chief operating officer. But while long-term concerns likely remain about the financial sector, other financial shares were moving higher.

The Commerce Department said May retail sales, which appeared to receive a boost from tax rebate checks, rose 1 percent. That was the biggest improvement in six months. Meanwhile, the Labor Department said first-time claims for unemployment benefits rose, but some of the pickup was due to volatility following the Memorial Day holiday.

Belgian Brewer InBev SA, whose brands include Beck's and Stella Artois, offered late Wednesday to buy the maker of Budweiser, Bud Light and other brands for $65 per share. Shares of Anheuser-Busch rose $3.85 or 6.6 percent, to $62.20.

In the first hour of trading, the Dow rose 129.62, or 1.07 percent, to 12,213.39.

Broader stock indicators also rose. The Standard & Poor's 500 index advanced 8.12, or 0.61 percent, to 1,343.61, and the Nasdaq composite index rose 22.04, or 0.92 percent, to 2,416.05.

The yield on the Treasury's 10-year note is at 4.16 percent, up from 4.08 percent on Wednesday.