By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks reversed post-Fed losses and finished Thursday with modest gains. Upbeat data from Philadelphia Fed, showing a rebound in manufacturing in March, boosted confidence.

Manufacturing data, along with the leading indicators report, suggested that the slowdown during the unusually cold and snowy winter was short-lived.

The S&P 500 index (SPX) ended the day 11.25 points, or 0.6%, higher at 1,872.01. The Dow Jones Industrial Average (DJI) gained 108.88 points, or 0.7%, to 16,331.05.

The Nasdaq Composite (RIXF) finished the day 11.68 points, or 0.3%, higher at 4,319.29.

Read the recap of our live stock market coverage.

The Philadelphia Fed's manufacturing index rebounded in March to a reading well above forecasts, while the Conference Board's leading economic index rose in February, suggesting that the dampening impact of severe winter weather will not be long-lasting.

However, rising mortgage rate and prices, and possibly harsh winter weather, hurt the housing market. Sales of existing homes declined in February to the slowest annual pace since July 2012, the National Association of Realtors reported Thursday.

Earlier, a Labor Department report showed a smaller increase in weekly unemployment benefit applications than expected, with the four-week average at the lowest level since the end of November.

Markets fell on Wednesday after Federal Reserve Chairwoman Janet Yellen said rate hikes could happen about six months after the central bank ends its bond purchases. At the current pace of tapering, this timeline indicates a rate increase as early as spring 2015.

Brad McMillan, chief investment officer at Commonwealth Financial Network, said that good news about the economy and the Fed's outlook outweighed fears of higher rates.

In a researched note, he wrote: ". there is a widespread impression that rising rates are bad for the market, that is not true. Rising rates below around 5% typically result in a rising stock market, not a falling one."

Burlington Stores, Guess report earnings

Burlington Stores Inc. (BURL) advanced 16% after the clothing retailer reported adjusted earnings per share ahead of expectations.

Scholastic Corp. (SCHL) dropped 2% even as the publishing, education and media company said its fiscal third-quarter loss narrowed thanks to a favorable settlement of federal tax audits.

Guess Inc. (GES) slid 3.4% after the fashion retailer's outlook fell short of Wall Street estimates. The company reported its fourth-quarter earnings on Wednesday after the market close.

Shares of Walter Energy (WLT) tumbled 20% after the company doubled the size of its 5-year, 9.5% senior secured note sale to $200 million along with the sale of $350 million in second-lien PIK toggle notes due in 2020, according to Dow Jones. Standard & Poor's Ratings Services on Wednesday said it maintained its B- corporate credit rating on Walter and said it has a negative outlook.

ExOne Co. (XONE) shares skidded 10% after the 3-D printer maker said it swung to a fourth-quarter loss. The firm's full-year outlook also disappointed investors.

Cliffs Natural Resources Inc. (CLF) shares dropped 2% after analysts at Bank of America Merrill Lynch cut the stock's price target to $16 from $20, according Analyst Ratings Network.

Nike Inc. (NKE)shares rose nearly 2% in aftermarket trade after the company's quarterly results topped estimates.

Elsewhere, Asian markets were bruised by the rate-hike signal, but European markets recovered losses after upbeat economic data in the U.S. Most commodities, including oil and gold, moved lower.

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