Updated at 12:30 p.m. ET

Stocks bounced back Thursday after Spain detailed its 2013 budget plan and analysts found no cause for alarm. Markets opened higher after an upbeat U.S. jobless claims report and despite other economic data pointing to weak growth. Investors were also optimistic about the prospects of further stimulus measures in China.

The Dow Jones Industrial Average ($INDU) was up 83 points at 13,497. The S&P 500 ($INX) was up 14 points at 1,447. The Nasdaq Composite ($COMPX) was up 38 points at 3,132, led by Apple's (AAPL) bounce.

If the markets manage a positive session Thursday, it would snap a five-day losing streak for the S&P 500 Index, which fell again Wednesday as civil unrest over austerity in Europe sparked investor concern.

Spain's plan
Spain's budget plan, revealed after 11 a.m. ET, would focus on cutting spending rather than hiking taxes. The government announced a detailed timetable for economic reforms and a tough 2013 budget in what many see as an effort to pre-empt the likely terms of any international bailout, Reuters reported.

Spain's budget minister added that he sees 2013 GDP down 0.5% but lighter job losses in 2013. Spain plans to tap about 3 billion euros from its reserves for liquidity.

Jobless claims fall sharply
The number of Americans who applied for unemployment benefits last week fell by 26,000 to a seasonally adjusted 359,000, the lowest level in two months. That was much better than economists' expectations for a drop to 379,000, according to Briefing.com.

The prior week's figure was revised up to show 3,000 more applications than previously reported.

The four-week average of new claims fell by 4,000 to 374,000, the Labor Department said, breaking five weeks of increases. The four-week average is often seen as a better indicator of labor market trends. While levels have remained in a narrow range in recent weeks, suggesting little change in the labor market, the current reading offers a positive sign.

GDP revised lower
Second-quarter economic growth was much lower than previously expected, as the Commerce Department cut  its final GDP estimate to 1.3% from 1.7%. Economists had expected GDP growth to remain at 1.7%, according to Briefing.com.

While drought conditions cut into inventories, less consumer spending and business investment than previously estimated also affected economic growth.

Durable goods orders sink
Orders for durable goods sank 13.2% in August, the biggest one-month decline in 3 1/2 years, as bookings for autos and aircraft fell sharply, the Commerce Department reported. Economists had expected a decline of 5%, according to Briefing.com.

Excluding the volatile transportation sector, whose bookings can swing sharply from month to month, orders fell by a much smaller 1.6% but still much more than the expected 0.2% decline. Orders for July were revised down to a 3.3% increase from an initial report of a 4.1% gain.

Shipments of these goods, which are used to calculate gross domestic product, fell 0.9% after declining 1.1% in July, suggesting that third-quarter economic growth will probably not improve much from the second-quarter 1.3% annual pace.

Pending home sales decline
Pending home sales -- a signed contract that has yet to close -- fell in August after hitting a two-year high in the previous month. The pending-home-sales index fell to 99.2 from a upwardly revised 101.9 in July, the National Association of Realtors said. The reason for the drop, the group said, was a shortage of supply of lower priced homes.

Compared to the same period in 2011, pending home sales were up 10.7%, marking the 15th straight month of year-on-year gains.

Chinese stocks surge
In Asia, Chinese stocks soared to lead Asian markets, with analysts attributing the gains to bargain buying. China's Shanghai Composite ended 2.6% higher, while Hong Kong's Hang Seng Index gained 1.1%.

Data released Thursday showed the People's Bank of China had injected a net 365 billion yuan (about $58 billion) this week into the Chinese banking system. There was more speculation that the China Securities Regulatory Commission, the country's markets watchdog, will announce steps to support the markets.

Japan's Nikkei Stock Average and Australia's S&P/ASX 200 Index each gained 0.5%.

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European markets rise

European stock markets rose ahead of Spain's announcements of its 2013 budget and economic reforms, which could help pave the way for a bailout request.

Greek leaders have reached a basic agreement on a 13.5 billion-euro ($17.4 billion) savings and revenue plan, The Wall Street Journal reported. Inspectors will now decide whether the plan is in compliance with international creditors and whether Greece deserves to receive another bailout installment next month, the second rescue package the country has received since its debt crisis began in late 2009. Greece will then get 31.5 billion euros.

On a slightly more positive note, the U.K. economy shrank less than previously thought in second quarter.

Stocks to watch

Tempur-Pedic International (TPX) has agreed to acquire mattress company Sealy (ZZ) in a deal valued at $229 million. Sealy shareholders will receive $2.20 a share, a premium of 2.8% to Wednesday's close. Including debt assumption, the deal is valued at about $1.3 billion. 

Discover Financial Services (DFS) said that fiscal third-quarter profit slipped 3.4%, yet still managed to beat expectations. Delinquencies and charge-offs declined, and loans grew, MarketWatch reported.

Nike (NKE) is expected to report quarterly results, with analysts expecting a profit of $1.12 a share, down from $1.36 a share. Analysts expect sales rose to $6.43 billion from $6.08 billion, driven by U.S. demand.

Research In Motion (RIMM) will report results for its second fiscal quarter after the close. Analysts expect a net loss of 47 cents per share for the quarter, which would be the third straight period of losses for a company that earned 63 cents a share in the same period last year. Revenue is expected to slide 40% to $2.49 billion.

Goldman Sachs resumed its analyst research coverage of Yahoo (YHOO) with a "buy" rating and a 12-month price target of $22 a share. Hewlett-Packard (HPQ), meanwhile, was cut to "underperform" at Jefferies.

Thor Industries (THO) on Wednesday reported that its fiscal-fourth-quarte​r earnings rose 20% as its recreational vehicle business saw double-digit sales growth. Both earnings and revenue were better than expected.