MARKET SNAPSHOT: U.S. Stocks Rise; S&P 500 Hits Intraday High

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market rose on Thursday, boosted by a report showing a larger-than-expected drop in weekly jobless claims ahead of the payrolls data due Friday.

Investors awaited a report on factory orders scheduled for 10 a.m. Eastern time. Several Federal Reserve officials speaking today will attract investors' attention.

The S&P 500 (SPX) added 5.35 points, or 0.3%, to 1,879.29, hitting an intraday high. If the index closes at this level or higher, it will be its 50th record in the past 12 months.

The Dow Jones Industrial Average (DJI) gained 53 points, or 0.3%, to 16,411.64.

The Nasdaq Composite (RIXF) added 10.29 points, or 0.2%, to 4,368.37.

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Investors welcomed a slightly better-than-expected jobless claims numbers. The number of people who applied for U.S. unemployment benefits fell by 26,000 to 323,000 in the week ended March 1, marking the lowest level since late November, the Labor Department said Thursday. Like other economic reports, claims have been distorted by a harsh winter. The four-week average that reduces the effects of weather and other unusual factors fell by 2,000 to 336,500, and it's shown little change in 2014.

The jobless claims data come ahead of Friday's nonfarm-payrolls report, which is expected to show job gains of around 140,000 for February.

U.S. productivity growth in the fourth quarter was reduced to a 1.8% annual rate instead of 3.2% as originally reported, the Bureau of Labor Statistics said. The revision matched economists' forecasts.

The Federal Reserve will release its quarterly report on household wealth at noon Eastern time, which will give a glimpse of whether consumers and businesses are cutting back on debt or adding to it.

Staples, Costco earnings disappoint

Staples (SPLS) shares slumped 11% after the company posted declines in sales and traffic for its fiscal fourth quarter, disappointing Wall Street. It also forecast a sales decline in the first quarter of 2014 and said it would close 225 stores by the end of 2015.

Costco (COST) dropped 3.3% after fiscal second-quarter profit declined 15%. The retailer said the first four-week period of the quarter made up the bulk of earnings underperformance. Same-store sales rose 4% in the U.S. and 5% internationally. Read: Polar Vortex set to slow February sales.

Children's Place Retail Stores Inc. (PLCE) shares slumped 11% after the retailer of children's clothes posted a fall in earnings and sales year-over-year and said it sees first-quarter comparable sales off 2% to 4%.

L Brands Inc. (LB) shares rose slightly after the company said same-store sales rose in February.

Shares in Yum! Brands (YUM) rallied 2.8% after analysts at R.W. Baird raised the stock to outperform from neutral.

Fed officials line up

Philadelphia Fed President Charles Plosser told CNBC on Thursday that he's "very worried" about potential for unintended consequences of the Fed's quantitative easing program. He told CNBC that the U.S. "may never return" to its previous growth rates, and it could be "many, many years" before that happens.

Mixed in between, a few top Fed officials should garner close attention from Wall Street. New York Fed President William Dudley will be interviewed by The Wall Street Journal and field questions at 8:30 a.m. Eastern. Atlanta Fed President Dennis Lockhart's speech on the economic outlook at Georgetown University in Washington DC is due at 6 p.m. Eastern.

Late Wednesday, Richard Fisher, president of the Federal Reserve Bank of Dallas, said in a speech in Mexico City that he was concerned about "eye-popping levels" of some stock markets, and that the central bank must monitor signs carefully to be sure another bubble isn't forming.

Wall Street finished a choppy day of trading on Wednesday mostly lower. The S&P 500 index (SPX) closed down less than a point at 1,873.81. The week, which started with a dramatic plunge on fears surrounding the Russia-Ukraine crisis, has so far produced a gain of 0.8% for the index, but the Dow industrials (DJI) is up just 0.2%. The Nasdaq Composite (RIXF) has fared better, with a nearly 1.2% gain, while the small-cap Russell 2000 index (RUT) is up nearly 2%.

European stocks stayed firm after the ECB decision. Asian markets closed on a largely stronger footing.

The dollar was mostly lower against major currencies in choppy trade, while gold and oil were also down.

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