By Anora Mahmudova and Sara Sjolin, MarketWatch

NEW YORK (MarketWatch)--An attempted rebound by the U.S. stock market Thursday fizzled out by the end of the session, as the main benchmarks wrapped up another rocky trading day essentially flat.

The start of Thursday's trading looked like the market was in store for another bludgeoning with the main benchmark falling 1% at the open. Nervousness after Wednesday's brutal ride marked much of the day's general demeanor.

That's until James Bullard, president of the St. Louis Federal Reserve, raised the possibility of extending bond purchases. The bond purchases, which is a vestige a 2008 crisis-era plan intended to stimulate the economy, is expected to end this month.

Bullard said the Federal Reserve should consider extending its bond-buying program beyond October to see how the U.S. economic outlook evolves. Bullard isn't a voting member this year of the rate-setting FOMC, but investors appeared to take his comments to heart, lifting markets higher.

While broader markets struggled to hold onto gains, small and mid-cap companies rallied. The Russell 2000 rose 13 points, or 1.3%, to 1,085.83 and the small-cap index outperformed the S&P 500 this month. Recent strength has been attributed to buyers getting attracted to relative cheapness of small stocks, after the Russell 2000 recorded a 13% decline from peak to trough.

The S&P 500 (SPX) closed flat at 1,862.76, with energy sector leading the gains.

The Dow Jones Industrial Average (DJI) slipped 24.5 points, or 0.2%, to 16,116.24, closing low for the sixth straight session.

The Nasdaq Composite (RIXF) ticked up 2 points to 4,217.39.

Jeffrey D. Saut, chief investment strategist at Raymond James wrote in a note that Wednesday's roller-coaster session was due to market participants' inability to manage their risk in July, when he prematurely predicted that the market would see a 10% correction.

"The time to raise cash was in the June--August time frame, when the dollar took off and negative divergences mounted, not now," he wrote.

In economic news, initial weekly jobless claims dropped to their lowest level in more than 14 years, while industrial production climbed 1% in September. Manufacturers in the Philadelphia region expanded a bit more slowly in October but growth was still strong, according to the Philadelphia Federal Reserve. A gauge of confidence among home builders pulled back this month from a nine-year high in September, falling five points to 54, according to National Association of Home Builders/Wells Fargo data released Thursday

Earnings: The results season continued at full speed on Thursday, with a heavy lineup ahead of the opening bell.

Goldman Sachs (GS) reported third-quarter earnings of $4.57, beating a consensus estimate from FactSet of $3.21, but reported higher expenses. Shares fell 2.6%.

Delta Air Lines (DAL) rose 2.9% after reporting third-quarter results.

Tobacco maker Philip Morris International (PM) reported third-quarter profit that topped expectations, but cut its full-year outlook citing the negative impact from the currency markets. Shares rose 2%.

Toy maker Mattel Inc. (MAT) posted earnings and sales that fell short of expectations as gross sales of its flagship Barbie doll fell 21% world-wide. Shares dropped 3%.

UnitedHealth Group Inc. (UNH) reported third-quarter profit of $1.63 a share, beating estimates of EPS of $1.53. Shares rose 3.9%.

Baker Hughes Inc. (BHI) shares dropped 3% after the oil-field-services company reported earnings per share that fell short of forecasts.

Movers and shakers: Netflix Inc. (NFLX) shares sank 19%, after the video-streaming company on Wednesday said its new-subscriber count fell short of its forecast of 3.69 million. It added 3.02 million new members during the quarter.

EBay Inc. (EBAY) lost 4.7% after the online retailer late Wednesday reported third-quarter earnings fell to $673 million, or 54 cents a share, from $837 million, or 53 cents a share, in the year-earlier period.

Apple Inc. (AAPL) shares fell 1.3%, as investors worried that its new iPadAir2 may not revive sales. Read: Apple's new iPads will be a hard sell.

Despite a continued decline in oil prices and a general drubbing for the stock market, 10 oil stocks among the S&P 1500 rose at least 7% on Wednesday.

Other markets: Europe's benchmark stock index dropped for an eighth straight day, after closing 3.2% lower on Wednesday. Data from Eurostat confirmed that inflation fell to an almost five-year low of 0.3% in September. Read: European stocks slip into correction amid 'perfect storm.'

Asian markets closed mostly in the red, with the Nikkei falling 2.2%. Crude-oil futures (CLX4) on Thursday bounced from a two-year low and from a dip under $80 a barrel, scoring their highest one-day dollar gain in three weeks. Gold futures settled lower, while the dollar weakened against yen.

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