MARKET SNAPSHOT: U.S. Stocks Eke Out Gains In Choppy Session

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks ended Thursday's choppy session modestly higher, as the S&P 500 eked out a gain, finishing at a record level for the 21st time this year.

The main benchmarks traded in negative territory most of the session, as investors paused after the biggest gain in 4 weeks on Wednesday. However, stocks turned positive in late trade rally. Markets' reaction to positive economic data earlier was mostly muted.

The S&P 500 (SPX) added 2.50 points, or 0.1%, to 1,959.48, ending near its intraday record high. The large-cap index gained for five consecutive days. The Dow Jones Industrial Average (DJI) gained 14.84 points, or 0.1%, to 16,921.46, also extending a winning streak to 5 days. The Nasdaq Composite (RIXF) defied the trend and ended the day down 3.51 points, or 0.1% at 4,359.33.

Reard the recap of MarketWatch's live blog of today's stock-market action.

Quincy Krosby, market strategist at Prudential Financial said that it is not surprising to see markets take a pause after a big rally.

"Markets liked Janet Yellen's prepared statement, in which she reiterated the need to keep rates low as there is still a lot of slack in the labor market. Economic data will have to improve and show a much faster rate of growth for the Fed to change its tune. So far, numbers are positive and solid, but not stellar," she said.

Thursday's economic reports were all positive, showing a consistent rebound in the economy. The weekly jobless claims dropped by 6,000 to 312,000, as expected. With layoffs at very low levels and more jobs available, the number of Americans seeking unemployment benefits continues to hover near a post-recession bottom.

The Philadelphia Fed's manufacturing index in June jumped to the highest reading of activity since last September, topping forecasts. Separately, signaling that economic growth could pick up in coming months, the leading economic index for the U.S. rose 0.5% in May to 101.7, the Conference Board said Thursday.

* Among individual stocks, shares of BlackBerry Ltd. jumped 9.7% after the smartphone maker posted an unexpected net profit and its adjusted quarterly loss was narrower than Wall Street had projected. Kroger Co. rose 5.4% after the supermarket chain reported better-than-expected first-quarter profit and sales. Shares of American Apparel Inc. leapt 6.7% after the company's board fired Chief Executive Officer Dov Charney. Penny-stock hopes fly for American Apparel after CEO firedRed Hat Inc. shares rose 3.8% after the software company's adjusted per-share earnings and revenue for the first quarter beat expectations on Wednesday, when it also agreed to acquire eNovance for about 70 million euros ($95 million). Pier 1 Imports Inc. shares fell 13% after the home-goods retailer missed earnings estimates and lowered its full-year earnings forecast.

* In overseas markets, Asian stocks closed mostly lower, with the exception of Japan's Nikkei 225 index , which surged 1.6%. European stocks also rallied on the Fed stance.

* Among commodities, Brent crude the global oil benchmark, on Thursday pushed above $115 a barrel for the first time since September, boosted by continued worries over Iraq and extended gain. Gold prices rose sharply and settled above $1,300 an ounce. The ICE Dollar index inched down.

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