(Reuters) - Stocks rose on Friday, extending the previous session's sharp rise as data showed retail sales posted their biggest gain since March. A rally in Europe and another strong outlook from a technology company also helped boost the market following a very volatile week. The S&P 500 is on the way toward its first two-day streak since July 21-22. The index has fallen for 11 of the past 14 days. U.S. retail sales in July climbed 0.5 percent, in line with forecasts, while sales, excluding autos, increased 0.5 percent, above forecasts.

• Read more

(Reuters) - Retail sales in July posted their biggest gain since March, tempering fears that the world's largest economy might be slipping back into recession. Sales climbed 0.5 percent, in line with analyst forecasts and following an upwardly revised 0.3 percent gain in June, according to Commerce Department data released on Friday. Consumer spending accounts for two thirds of U.S. economic activity, and the data indicates the third quarter was off to a decent start.

• Read more

(Reuters) - A piecemeal ban on short-selling of financial stocks in Europe sparked a rush of alternative proposals from countries and regulators on Friday and investors said the row undermined a rally in bank shares. France, Italy, Spain and Belgium imposed bans, which varied according to country, while Britain, the Netherlands and Austria said they saw no need for action. Germany said it would instead push for a Europe-wide one on so-called naked short-selling.

• Read more

(Reuters) - J.C. Penney Co Inc (JCP.N) forecast weaker-than-expected third-quarter earnings and further erosion in its gross margin, sending its shares down 3 percent in premarket trade. The department store chain reported second-quarter profit in line with the average Wall Street estimate as merchandise available only at JCPenney stores boosted sales. Discounting also helped sales but cut into profit margins, and the company said gross margin would also be hit in the current quarter.

• Read more

(Reuters) - If history is any guide, another oil-induced recession may be just around the corner, at least for the United States and some of the other developed economies. Every time that the cost of oil relative to global economic output has hit current levels -- and that's even after sharp falls in spot prices this month -- it has heralded a slump.

• Read more

(Reuters) - Reeling from a debt crisis that has spread to the very heart of Europe, the continent is looking once again to the Franco-German duo that dreamed up the euro to save the single currency from ruin. German Chancellor Angela Merkel will meet with French President Nicolas Sarkozy in Paris Tuesday with the stakes for Europe's audacious 12-year old currency experiment higher than ever.

• Read more

(Reuters) - For years, low prices on China-sourced goods helped dampen inflation in the United States. Now China's efforts to boost domestic consumer spending, reducing reliance on exports, are leading to higher costs for multinationals that manufacture goods there. Eventually, China could export its inflation. Conglomerates ranging from Emerson Electric (EMR.N) to Honeywell International (HON.N) feel pressure on margins from double-digit wage increases in China. So have toymaker Mattel (MAT.O), fast-food chain Yum! Brands (YUM.N) and computer maker Dell (DELL.O), analysts and investors say.

• Read more

(Reuters) - The Italian government will pass a sweeping package of cuts and tax increases at a cabinet meeting Friday as it scrambles to meet European Central Bank demands for action to shore up confidence in its public finances. Prime Minister Silvio Berlusconi told local government representatives Friday that cabinet would adopt 20 billion euros ($28.5 billion) in austerity measures in 2012 and a further 25 billion euros the year after to bring the budget into balance by 2013.

• Read more

(Reuters) - Stocks rallied on Thursday as solid results from Cisco and mildly encouraging U.S. jobs data gave investors the motivation to scoop up shares beaten down after several days of sharp selling. Labor Department data showed new U.S. claims for unemployment benefits dropped to a four-month low last week, a dose of good news for an economy battered by a credit-rating downgrade and a spate of soft economic data in recent weeks.

• Read more

(Reuters) - The number of Americans claiming new jobless benefits fell to a four-month low last week, a sliver of hope for an economy battered for days by a credit rating downgrade and falling share prices. The jobless claims data released by the Labor Department on Thursday eased concerns that the economy was heading back into recession as feared by investors, and buoyed U.S. stocks.

• Read more