Thursday morning headlines

Stocks keep climbing: Some nice carryover from yesterday's big gains, perhaps fueled by strong retail sales. Dow is up 90 points in early trading.

Retailers score in November: Sales jumped 6 percent, way more than the 3.6 percent analyst estimate. Almost everybody did well -- Macy's, J.C. Penney, Target -- and Abercrombie & Fitch rose 22 percent. From AP:

"Overall, discretionary spending looks to be making a comeback," said Ken Perkins, president of RetailMetrics, a research firm. "Consumers are still looking for deal; that is deeply ingrained in the consumer." However, the upbeat commentary from retailers' reports Thursday "are encouraging signs."

Weekly jobless claims rise: But the four-week moving average, which is the more important indicator, fell to 431,000 - still quite high but the lowest it's been since August of 2008, before the Lehman collapse.

Oil prices stay high: After yesterday's surge, they're in the $87-a-barrel range, the result of renewed confidence about the economy. Of course, it also means an increase in gas prices. (AP)

Schwarzenegger to push budget plan: His aim for the special session of the legislature is to close a $6-billion deficit covering the current fiscal year, but lawmakers are likely to wait until Jerry Brown takes office next month. From the Sacramento Bee:

Democrats expect more palatable solutions from Brown, especially since Schwarzenegger spokesman Aaron McLear has promised "ugly cuts" and no new taxes in Schwarzenegger's stopgap December proposal. But Democratic leaders also think the deficit problem should be viewed in its $25.4 billion entirety - not just as a short-term $6 billion gap with an end date defined by the lame-duck governor.

Diller steps down as CEO: He will stay on as chairman of his Internet conglomerate, IAC/InterActiveCorp, Also this morning: he and his business partner John Malone are dividing up their assets, with Malone swapping out his equity stake in IAC for $220 million. (Deal Journal)

Questioning initiative process: Less than half of California voters say they have confidence in their fellow voters to make public policy decisions at the ballot box, according to a new survey. But that was better than their confidence in lawmakers. (Public Policy Institute of California)

TCW sues Gundlach-operated trust: The suit implicates the trustees of rival mutual funds that Jeffrey Gundlach set up after the L.A.-based investment firm fired him. Allegations are similar to an earlier suit that TCW filed: conspiracy, unfair competition and theft of TCW data. (LAT)

L.A. pension fund to select new head: Sally Choi left her post as general manager of the Los Angeles City Employees' Retirement System last month. The LACERS pension plan has 43,000 members and beneficiaries. (City Maven)