MARKET SNAPSHOT: U.S. Stocks Rise, Lifting S&P 500 Above Its Record Close

By Victor Reklaitis and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks advanced early Thursday, as the S&P 500 worked for a fourth straight day of gains and moved above its July 24 record close.

Neither downbeat Chinese data nor a perceived hawkish set of Federal Reserve minutes deterred upbeat sentiment, and Friday's speech from Janet Yellen remains a market focus.

The S&P 500(SPX) gained 2 points, or 0.1%, to 1989. The benchmark index is trading above its July 24 record close of 1,987.98, but below its intraday record of 1,991.39, also achieved July 24.

The Dow Jones Industrial Average(DJI) gained 28 points, or 0.2%, to 17,003, topping the big round number of 17,000. The Nasdaq Composite(RIXF) rose 3 points, or 0.1%, to 4,530.

In other economic news, initial jobless claims fell by 14,000 to 298,000 last week, basically in line with the 300,000 claims expected by economists surveyed by MarketWatch.

Three other economic reports are due at 10 a.m. Eastern, the most closely watched of which may be existing-home sales for July, which economists expect to hold steady. Also out at that time: the Philadelphia Fed manufacturing survey for August and leading indicators for July.

With time to mull it over, investors appeared to further shrug off the Fed minutes released Wednesday that showed some officials arguing the groundwork should be laid for raising interest rates sooner than expected. A Thursday report showing a three-month low for Chinese factory data was also brushed aside.

Brenda Kelly, chief market strategist at IG Markets, said the Fed minutes mostly revealed officials had debated whether to raise rates sooner than expected. "It's still unlikely that it's going to be immediate and remains data dependent," she said in emailed comments.

Wall Street closed modestly higher on Wednesday, finishing just 0.07% off its record close hit July 24, though some market watchers are pointing out record closes are a commonplace occurrence. Also read: "All-time high" is the "we should talk" of the stock market.

High hopes for Jackson Hole: Kelly and other strategists said not much will hold markets' attention ahead of Friday's speech from Fed Chairwoman Yellen at Jackson Hole, Wyo. European Central Bank President Mario Draghi will speak the same day.

"Markets are making hay while the sun shines -- possibly in a delusional manner based on previous equity moves in the runup and aftermath of the Jackson Hole symposium. Yellen, however, is not Bernanke, and she may offer some surprises," Kelly said.

Other strategists are sounding at least slightly cautious in the short term following the S&P 500's two-week uptrend.

"Despite hints by the FOMC that rate hikes may come sooner than widely anticipated, the S&P 500 appears to be on a mission to eclipse the 2000 level before considering the consequences of an uncontrolled advance," said Sam Stovall, an equity strategist at S&P Capital IQ, in emailed comments.

Individual stocks: Sears Holdings Corp. (SHLD) fell 5.7% after posting a large loss and margins shrank.

Dollar Tree Inc. (DLTR) was down 1.8% after reporting quarterly results and as Family Dollar Stores Inc. (FDO) reaffirmed its support for Dollar Tree's takeover bid, rejecting a rival offer from Dollar General Corp. (DG). (Read more: Family Dollar rejects Dollar General's takeover bid http://www.marketwatch.com/story/family-dollar-rejects-dollar-generals-takeover-bid-2014-08-21.)

Hewlett-Packard Co. (HPQ) rose 1.7% after the tech pioneer's third-quarter profit fell, but beat forecasts late Wednesday. Retailer Gap Inc. (GPS), which rose 0.4%, will grab the spotlight after the closing bell. What to look for

Follow the day's notable stock moves here.

Other markets: The Stoxx Europe 600 index rose 0.5% as investors pushed aside a mixed bag of purchasing managers indexes and looked to recent market weakness as a buying opportunity. The China data wasn't overlooked in Hong Kong, where the Hang Seng index snapped a four-session winning streak. Elsewhere, gold(GCZ4) was down more than 1%, continuing to lose ground after the Fed minutes.

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