US Stocks Near 5-yr High on Fed Stimulus (Video)

Stocks surged higher on news the Federal Reserve will take more aggressive action to help the weak U.S. economy.

Here is a summary of business headlines:

•     Stocks jump on Fed stimulus plan;
•     jobless claims up more than expected;
•     Wholesale inflation rises in August;
•     Nintendo Wii U to launch November 18.

 U.S. stimulus boosted risk appetite and U.S. central bank said it will buy $40 billion of mortgage-backed debt per month, and it will continue to purchase assets until the outlook for jobs improves substantially- as long as inflation remains contained.

Federal Reserve announced an aggressive plan to stimulate the economy, encouraging investors to dive back into the market.

The Dow and the S&P 500 both closed at their highest levels since December 2007, while the Nasdaq ended at the highest since November 2000.

More evidence of the continued weakness in the jobs market: the number of Americans filing new claims for jobless benefits rose more than expected last week to 382,000. Separately, the August producer price index, which measures inflation at the wholesale level increased 1.7 percent. That is the largest increase since June of 2009.

Another shot in the battle for the living room: Nintendo will launch the Wii U on Sunday November 18. Entry level price: $299. It will have an entertainment component called the Nintendo TVii.

In Europe: a mixed picture with the London FTSE closing higher.