NEW YORK (Reuters) - New claims for Unemployment Benefits rose unexpectedly last week, popping Above 400.000 for the first time in just over a month and Reinforcing the view That the battered Labor market WAS healing only slowly.

KEY POINTS: * Initial claims for state Unemployment Benefits climbed to a seasonally Adjusted 402.000 from 396.000 in year upwardly revised the Prior week, the Labor Department said on Thursday. * Economists polled by Reuters forecast HAD claims at 390.000.

COMMENTS:

GARY THAYER, CHIEF STRATEGIST MACRO, WELLS FARGO ADVISORS, ST. LOUIS, MISSOURI:

"There Was an uptick in jobless claims Declining After seeing a trend. We Need to Watch Closely claims. If claims start to rise from here It Would not Be A Good sign for the economy. Aim at this point Other Indicators Suggest the economy IS doing a little better so maybe We Should not read too much Into this. We Also saw uptick in year Continuing claims data.The ADP numbers out Earlier this weekend the Suggested Labor market WAS Stabilizing and Improving maybe a bit unsecured personal loans. The claims numbers this morning do not nullify That, drank a little They Might create Doubt Before Tomorrow's numbers. "

PIERRE ELLIS, SENIOR ECONOMIST, DECISION ECONOMICS, NEW YORK:

"Jobless claims are not falling. They're not in a danger zone, aim the trend IS NOT Becoming healthier. There's an upward revision to the Continuing claims for the payroll survey week That Is important for Friday's monthly Employment Data. There's No Longer a decline in the number of people Receiving Unemployment Check, In Fact There's an Increase. So Enthusiasm about the ADP result Will Be Contained. "

VIMOMBI NSHOM, ECONOMIST, IFR ECONOMICS, A UNIT OF THOMSON REUTERS:

"The number of people filing first claim Their Benefits for Unemployed INcreased for the second week in a row, up to 402.000 in the week ending November 26.

NEW YORK - Americans are Beginning to feel more confident about the economy just as the US all-important Christmas shopping season begins. Their goal Optimism May Be short-lived.

Consumer confidence surged in November to STI level Highest Since July, a sign That Americans May Be Willing To Spend more, the Conference Board Reported Tuesday.

"Consumers APPEAR To Be Entering the holiday season in better spirits," Lynn Franco, director of the Conference Board Consumer Research Center, Said in a statement.

Goal Is Still painfully confidence below What is a healthy Typically Seen DURING economy. Could Americans and start to feel more skittish if the debt crisis deepens in Europe and Stokes Fears of Another recession in the US

"I think this Will Be a good holiday shopping season," Said Mark Vitner, senior economist at Wells Fargo US my credit score."But The Question Is What Will Happen After That?"

The Conference Board, a private research firm, Consumer Confidence Index Said STI climbed 15 points to 56.0 in November. That Is The Highest Since it has-been the 59.2 reading over the summer. That IS still well below the level of 90 Indicate That year economy on solid footing.

The confidence numbers follow Encouraging Other signs: Every month for the past year except one, Spending by Americans HAS grown 2 percent a year or more from Earlier, According To government data.

Americans Spent $ 52.4 one billion over the four-day Thanksgiving Day weekend, the Highest Total Ever Recorded DURING the traditional start to the holiday shopping season, According To the National Retail Federation. Hot News:

(Reuters) - US retailers Moved from the start of the frenzied holiday shopping season to the next phase on Saturday, Hoping to Avoid a Drop After Black Friday and keep the momentum going DURING a fitful Economic Recovery.

After featuring the usual deep discounts on Thanksgiving on Thursday and on Friday, retailers still Were Offering bargains on Saturday as holiday IS Spending Expected to show only about half the growth of last year.

The holiday season kicks off on That Traditionally Black Friday - the biggest day of the year for retailers - is Closely Watched by investors as consumer Spending accounts for about 70 percent of the US economy.

Were Encouraging Initial signs. ShopperTrak, Which Measures retail traffic, sales rose 6.6 Estimated That break on Friday Compared with a year Earlier.

Goal in 2010 got off to retailers aussi a strong start to the holidays, only to see a quick and sharp falloff quick cash.The National Retail Federation Expects holiday retail sales to rise 2.8 percent this year, down from 5.2 percent growth in 2010.

Even Tougher Means That year battle for market share.

"Everybody is fighting for the Same consumer," Said Laura Gurski, a partner at management consulting firm AT Kearney.

At a Gap Inc. store in New York's Times Square, everything was 60 percent off on Saturday. Another clothing retailer, Aeropostale Inc., said on STI website That everything was 50 to 70 percent off in ITS "Saturday Blowout."

"That's the name of the game now - Promote, Promote, Promote," Said David Bassuk, managing director of consultancy AlixPartners LLP.

MILAN (Reuters) - Italy Paid a record 6.5 percent to borrow money over six months on Friday and Its Long-term Funding Costs soared far as Seen Above Levels for sustainable public finances, raising the pressure on Rome's new emergency government.

The auction yield on the six-month paper Almost Doubled Compared to a month Earlier, capping a week in a German bond auction Which cam close to failing and the leaders of Germany, France and Italy failed to make progress on crisis resolution Measures.

Though Italy managed to raise the full Planned Amount of 10 one billion euro, weakening demand and the borrowing Costs Highest Since it joined the euro frightened investors, pushing stocks lower and Italian bond yield to record highs on the secondary market cash advance america.

Yields on two-year BTP bonds soared to 8 percent more Than in response, a euro lifetime high, despite Reported Purchases by the European Central Bank.

In a sign of severe market stress, it now more to borrow Costs for Two Years Than 10 on the secondary market and borrowing for whatever term Costs are above-the 7 percent threshold, over Italy Which IS Likely to Need outside help if They Do not grant .

"The pricing is awful" Padhraic Garvey Said, rate strategist with Dutch bank ING in Amsterdam. Hot News:

(Reuters) - The Federal Reserve plans to stress test banks six large US Against a hypothetical market shock, Including a deterioration of the European debt crisis, as share of year Annual Review of bank health.

The Fed Said It Will next year publish the results of the tests for six banks That Have large trading operations: Bank of America (BAC.N), Citigroup (CN), Goldman Sachs (GS.N), JPMorgan Chase (JPM.N ), Morgan Stanley (MS.N) and Wells Fargo (WFC.N).

"They are worried about the outcome Clearly of Europe," Said Nancy Bush, a longtime bank analyst and contributing editor at SNL Financial.The Fed Said That It Plans to Respond to banks by March 15 Business Card Holders. It Was not clear Would Be When The results published.

The Fed Will use the stress tests to determined whether banks are robust Enough to Raise Dividend or repurchase stock, or whether THEY Need to Obtain Additional capital.

The Fed plans to release more information Than it DID last year about the tests' results. The regulator Said It Is doing so to "Foster market discipline."

The Fed Will Disclose the estimate of revenues, loss and capital ratios of the 19 biggest banks if They Were To Suffer a market shock.

This type of disclosure Could Give investors more certainty and Markets about the strength of US Hot News:

TOKYO (Reuters) - Asian shares on Thursday as Fell Remained Uncertainty over how euro zone leaders Would Respond to Mounting Funding Difficulties for European banks, and year by US Politicians apparent failure to AGREE on deficit reduction hurt feelings.

The United States Congressional deficit-reduction committee set to WAS ITS Formally announce three-month-long effort to bridge partisan differences over taxes and Spending Has Failed, aid Told Reuters.

Automatic Spending cuts of $ 1.2 trillion over a decade are due to start in 2013, After elections in 2012, if the "super committee" of six Democrats and six Republicans cannot agree low rate payday loans.

MSCI's broadest index of Asia Pacific shares outside Japan extended icts Losses to fall 1.5 percent on Thursday icts After posting biggest weekly loss in about Two months last week.Japan's Nikkei stock average (. N225) Fell 0.1 percent.

"It Is a minor negative, There Is a few questions to Be Asked - do Moody's and Fitch for example move to downgrade the US," Said HSBC's head of global equity strategy Garry Evans.

Market expectations for a deal Were low, drank a failure of the committee Could remind investors of the Risks Posed by a dysfunctional US

ROME / ATHENS (Reuters) - The European Central Bank stepped in to stem Accelerating year sell-off of euro zone government bonds on Wednesday, traders Said, After the United States for more decisive action Called to halt a sovereign debt crisis Spreading.

European shares and bonds of the euro zone Weaker Countries Recovered INITIALLY on the move on the day Italian Prime Minister-Designate Mario Monti WAS to name a national unity government to Implement long-delayed structural Economic Reforms.

"They're in Heavily on Italy and Spain, 2-10 years," one trader Said of the Central Bank intervention.The risk premium investors charge for holding French debt Rather Than benchmark German 10-year Bunds hit euro lifetime high Above Another 190 basis point on Tuesday personal humidifier.

President Barack Obama Turned up the heat on Europe to act more boldly to extinguish the bushfire Spreading.

"Until we put in place a concrete plan and structure Send a clear signal That To The Markets That IS standing behind Europe and the Euro Will Do What It Takes, we are going to continue to see the market turmoil we Kinds of saw, 'he said on a visit to Australia.

Purpose That There Was no sign Wednesday's bond-buying signaled a change in the ECB's policy of limited, stop-go purchase to Stabilize Markets Temporarily while Maintaining pressure on Government.

Obama Said That There HAD beens whilst progress in putting together unity Governments in Italy and Greece, Europe still faced a "problem of Political Will.

NEW YORK (Reuters) - USbank shares, sensitive to flare-ups in Europe's debt crisis, Looked Set To Be Among the biggest losers. In premarket trade, shares of Citigroup Inc. (CN) Fell 1.8 percent to $ 27.87, while the Financial SPDR exchange traded fund (XLF.P) Dropped 1.5 percent.

"As long as the (European Central Bank) continued to Be Unwilling to Become the lender of last resort and really pull out the bazooka you are going to continue to see scares thesis," Said Pursche best air conditioners.

S & P 500 future and Fell 11.4 percentage points below Were fair value, a formula That Evaluate pricing by Taking Into account interest rates, dividends and time to expiration of the contract. Dow Jones Industrial Average slid further 110 points, and Nasdaq 100 future lost 20.5 points.

When Italian bond yield rose 7 percent last week Above, the S & P 500 Fell Nearly 4 percent in one day. Heightened volatility HAS marked-US Hot News: