By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks shook off early morning gloom and rose on Thursday after a report from the Philadelphia Fed showed a rebound in manufacturing in March following harsh winter weather.

The S&P 500 index (SPX) rose 6.7 points, or 0.3%, to 1,866.61. The Dow Jones Industrial Average (DJI) added 64 points, or 0.4%, to 16,279.74.

The Nasdaq Composite (RIXF) gained 16.28 points, or 0.4%, to 4,320.85.

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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.

Burlington Stores, Guess report earnings

Burlington Stores Inc. (BURL) advanced 12% after the clothing retailer reported adjusted earnings per share ahead of expectations.

Scholastic Corp. (SCHL) dropped 5% 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 5.8% in early trading Thursday 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 in Walter Energy (WLT) tumbled 14% 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 Service on Wednesday said it maintained its B- corporate credit rating on Walter and said it has a negative outlook.

ExOne Co. (XONE) shares skidded 9.3% 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 2.1% after analysts at Bank of America Merrill Lynch cut the stock's price target to $16 from $20, according Analyst Ratings Network.

Reporting after the market close on Thursday, Nike Inc. (NKE) is forecast to post fiscal third-quarter earnings of 72 cents a share.

Elsewhere, European and Asian markets were bruised by the rate-hike signal, while most commodities, including oil and gold, moved lower.

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