US mkts surge despite record jump in oil price

CNBC's Scott Cohn - The stocks surge in the US despite a record jump in the price of oil. The DOW Industrial closed 214 points higher, the Nasdaq up 47 points and the S&P 500 up 27 points.

First time claims for unemployment benefits fell last week by 18,000 and that was a surprise and is an important report ahead of Friday’s monthly US job reports.

Strong earnings from number of retailers also helped ease fears about US consumers and a big deal in wireless consumers also helped, Verizon buying Alltel for USD 28 billion which will make Verizon the largest US mobile carrier

Stock markets were unphased by a big jump in crude oil prices more than USD 5/bbl that is a biggest one-day jump in dollar terms and the dollar was key to that falling on prospects for European interest rate hikes.

With Fuel prices so high Continental Airlines has joined the ranks of US carriers making big cuts, the airline will cut 3000 jobs and cuts its capacity by 11%. Once again big jump in stocks ahead of unemployment report.

Wall Street action:

Dow up 214 pts, Nasdaq gains 47 and S&P 500 up 27 pts
Unexpected drop in jobless claims, down by 18,000
Strong earnings from retailers help ease consumer fears
Verizon buys Alltel for $28 bn making it the biggest US mobile carrier
Crude jumps $5/bbl, biggest 1-day jump in dollar terms
Continental Airlines will cut 3000 jobs and capacity by 11%

Data to Watch
Monthly US Jobs report today