U.S. Stocks Break Losing Streak

U.S. stocks held onto earlier gains through the closing bell and snapped a string of recent losses as positive job market data helped offset worries about a budget standoff in Washington.

The Dow Jones Industrial Average climbed 0.4% to 15,3218.2. The Standard & Poor's 500 index rose 0.35% to 1,698.7, breaking its longest losing streak this year.

And the Nasdaq Composite gained 0.7% to 3,787.4.

Uncertainty over the Fed’s policy intentions and rising worries about the budget and debt-ceiling talks have some investors climbing a wall of worry. Lawmakers are fighting over a short-term spending bill to keep the government running when the next fiscal year starts Oct. 1. But Democrats have been unwilling to give into GOP demands, namely the defunding of President Barack Obama's health care reform law.

It was a busy day on the economic data front. The number of Americans seeking new unemployment benefits remained near six-year lows in the latest week. The number of initial jobless claims fell by 5,000 to a seasonally adjusted 305,000.

Economic growth during the second-quarter was left unrevised at 2.5%.

And sales of previously-owned homes fell in August for the third month in a row, as an index for pending sales of existing homes declined 1.6%, slightly more than expected.

The yield on the 10-year Treasury note ticked up to 2.648%. Bond yields move inversely to bond prices.

November crude-oil futures edged higher, while September gold futures slipped a bit. And the U.S. dollar gained ground against both the yen and the euro.

In corporate news, J.C. Penney (JCP) rose almost 3% to close at $10.42. The company issued a news release Thursday saying that it anticipates positive same-store sales for the rest of the year, and CNBC reported that the company’s CEO doesn’t see conditions this year where the company would raise liquidity.

Bed Bath & Beyond (BBBY) rose 4.5% to $77.54 after the retailer reported late Wednesday fiscal second-quarter earnings and revenue that topped estimates, and provided an upbeat earnings outlook.

Meanwhile, Hertz (HTZ) plunged 16% to close at $21.63 after it lowered full-year 2013 financial forecasts.