A release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits dropped 14,000 to 529,000 in the week ending Nov. 22. However, despite the fall, initial claims still remains near 16 years high. Economists had forecast jobless claims to fall to 537,000. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, rose to a 25 year high of 518,000. Continuing claims for the week ending Nov. 15 dropped by 54,000 to 3.96 million.

A separate release by Department of Commerce showed orders for durable goods fell 6.2% in October, the largest decline since 2006. Orders climbed 0.8% in September. Economists on average had projected a decline of 2.5%.

According to the University of Michigan/Reuters index, U.S. consumer sentiment fell to 28 year low in late November to 55.3 from an early November reading of 57.9. Economists on average had expected the index to fall to of 57.7.

A Commerce Department release showed sales of new homes fell an estimated 5.3% in October to a seasonally adjusted annual pace of 433,000, the lowest level in 17 years. Economists had expected the new home sales to decline to 441,500 units.

A separate release by Institute for Supply Management-Chicago said that the manufacturing activity contracted less than forecast in the region. The region's business index shrank to 33.8 in October, lee than consensus estimate of 38.5. A reading below 50 suggests contraction.

On Wednesday, President-elect Obama named Paul Volcker to head the President's Economic Recovery Advisory Board.

The European Union on Wednesday proposed stimulus plan totaling 200 billion euros or $259 billion to boost the economy.

China's central bank lowered its key interest rate by 108 basis points to 5.58% from 6.6% in order to shore up the economy. The interest rate cuts take effect on December 27, Thursday. The bank also slashed the deposit rate by 108 basis points to 2.52% from 3.6%.  Additionally, the bank axed the reserve requirement for the biggest banks to 16% from 17% while it reduced the requirement for smaller banks to 14% from 16%.

According to British Bankers Association the London interbank offered rate, or LIBOR, that banks charge each other for three loans dropped two basis points to 2.18% on Wednesday. The overnight rate increased six basis points to 0.99%. The Libor-OIS spread narrowed two basis points to 176 basis points.

Europe settled flat on Wednesday. The London time, the U.K. FTSE dropped 18.56 points or 0.44% to 4,152.69. The German DAX finished almost unchanged at 4,560.50 while French CAC slumped 1.24%.

Asian markets settled mixed. Nikkei fell 100.71 points or 1.33% to finish at 8,213.22. Hong Kong's Hang Seng Index added 490.85 points or 3.81% to 13,369.45.Shanghai Composite Index rose 9.17 points or 0.49% to close at 1,897.88.

NYMEX Crude oil for January delivery climbed $3.67, or 7.2%, to settle at $54.44 a barrel.

Disclosure: Author does not own any of the stocks discussed here.