ABC News Update

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3:51 | 12/01/11

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Transcript for ABC News Update
Fresh off the Dow's best trading day in nearly three years new numbers suggest the economy may finally be turning a corner. ABC's TJ Winick has more. It's only the first -- December shaping up to be a great month and a much needed shot in the arm for the US economy. What we might not see repeat performance today Thursday the stock market closed up 490. Points. The biggest gain since march of 2009. The most important factor. The collaboration between several central banks across Europe to lower borrowing costs and prevent a global credit crisis. Even -- a long term prognosis remains in doubt. Lot of people think that this is simply been banned in all it's doing is buying a little bit time. For Europe to trying to deal with -- real fundamental problems. But it doesn't cure Europe's -- and we here in the US there were several encouraging signs with home sales up ten point 4% last month. With sales up in just about every region of the country. And then a private industry report found that American companies hired 206000. New workers last month that's the best month for hiring in nearly a year. Over half the jobs came from small business sector. And that suggests that we're starting to -- new business formation pickup which is critical to have sustained recovery going forward. At the same time the number of Americans applying for unemployment benefits rose for the second straight week. -- sign the economic recovery is still slow and uneven. And then Americans are already spending money on those holiday gifts in record numbers sales up almost 9% from last year. With Wall Street on such a wild ride the past several months experts advise us as always to stick your long term financial plan. And try not to look at your portfolio too often. TJ Winick ABC news New York. President Obama may be getting an early gift from congress right off the top of his political wish list. Republican officials -- legislation being drafted in the house would ring and -- expiring program of unemployment benefits. And extend -- Social Security payroll tax cut both are due to expire at the end of the year a house vote could come as soon as next week. Republican presidential candidate Herman Cain is digging in for a fight with his alleged mistress. Kane's lawyer is asking for cell phone records from ginger -- the woman who says they engaged in a thirteen year long affair. White says her phone records show calls and texts between them and McCain wants them to be examined for authenticity. The former godfathers pizza CEO denies the affair took place. In the GOP race for the white house Republican governor is pretty much agree that President Obama faces huge political obstacles. But there hardly brimming with confidence about the 2012 election. Many Republican governors are warning Republican candidates. Not to be so quick to dismiss the wave of anti Wall Street sentiment are also worried that their party's tax cut issue makes them appear too -- to protect the rich. At a time of record unemployment and financial struggles among ordinary Americans. Southern California's bracing for more wild weather today. Powerful Santa Ana winds tore through the LA area last night leaving nearly 200000. People without power. And forcing the diversion of flights from LA -- winds today could top eighty miles an hour. Two governors are working on the federal legalization of marijuana. Washington governor Chris -- war in Rhode Island governor Lincoln Chafee have petitioned the DEA. To make it legal for doctors to prescribe pot and for a pharmacist to fill those prescriptions. Currently sixteen states including Washington and Rhode -- do allow the medical use of marijuana.

This transcript has been automatically generated and may not be 100% accurate.

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