Down and up

US stocks rallied, following the Dow Jones Industrial Average’s biggest drop in four weeks, as weaker-than-expected data on economic growth and jobless claims boosted speculation the Federal Reserve will maintain stimulus.

Sony scheme

Sony is working with Morgan Stanley and Citigroup as it considers adopting billionaire Daniel Loeb’s proposal for a sale of its entertainment unit, sources said.

CIT flies free

CIT Group, the business lender run by John Thain, jumped as much as 6.5 percent after reporting that regulatory curbs imposed in 2009 while the firm struggled to survive have been lifted.

Costco climbs

Costco said third-quarter profit rose 19 percent, beating analysts’ estimates, as revenue from membership fees increased.

Disney dips

Walt Disney fell as much as 2.9 percent, the most since January, after CFO Jay Rasulo tempered expectations for the current quarter, citing film marketing costs and tough comparisons with a year earlier.