Stocks rise on signs that global economy still growing despite European debt concerns

Stocks climb early on hopes of economic growth

NEW YORK — Hopeful signs that debt in Europe won’t derail a global economic recovery sent stocks higher Wednesday.

Federal Reserve chairman Ben Bernanke is scheduled to testify in front of the House Budget Committee. He is expected to reiterate his belief that the U.S. economy will not fall back into recession, but growth will remain slow. Similar comments from the Fed chairman helped push stocks higher Tuesday.

The Fed releases its beige book report Wednesday afternoon. The report is a snapshot of regional economic activity. A more positive tone by the Fed, which has been guarded in its assessment of the economy thus far, could provide the impetus to push stocks higher.

A report on wholesale inventories and sales is likely to confirm continued domestic growth. The report is expected to show inventories at the wholesale level rose for the fourth straight month, while sales likely climbed for the 13th straight month in April.

Economists surveyed by Thomson Reuters expect that inventories at the wholesale level rose 0.5 percent in April, while sales rose 0.6 percent. That compares with inventory growth of 0.4 percent and a jump in sales of 2.4 percent in March.

The slowdown in sales would be consistent with recent data that shows the economy is improving, but growth is slow and sometimes choppy.

Despite expected signs of growth in the U.S., concerns about the health of Europe’s economy has traders anxious. Governments across Europe are planning deep spending cuts to contain rising debt, which some investors worry will bring even a modest global economic recovery to a halt.

A report that said China is expected to report better-than-forecast export data later this week has boosted hopes that Europe’s debt problems will not hold back a global recovery.

Stocks are also getting a boost after the euro climbed back above $1.20, after trading slightly lower earlier in the morning. Major European indexes erased early morning losses.

Markets worldwide have regularly been taking a cue from the euro in recent weeks because it is seen as a proxy for confidence in Europe’s economic health.

In early morning trading, the Dow Jones industrial average rose 39.00, or 0.4 percent, to 9,978.98. The Standard & Poor’s 500 index rose 5.33, or 0.5 percent, to 1,067.33, while the Nasdaq composite index rose 13.54, or 0.6 percent, to 2,184.11.