By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market pushed higher after an early wobble on Thursday after Federal Reserve Chairwoman Janet Yellen, testifying before the Senate Banking Committee, reaffirmed the central bank's accommodative policy.

Earlier, investors weighed a surprise jump in weekly jobless claims against a smaller-than-expected drop in durable-goods orders.

The S&P 500 (SPX) ticked up 4 points, or 0.1% to 1,849.78, briefly breaching a key technical level of 1,850 at session highs. A close at or above 1,850 would set a record.

The Dow Jones Industrial Average (DJI) added 31 points, or 0.2% to 16,227.89.

The Nasdaq Composite (RIXF) rose 14 points, or 0.3% to 4,306.93.

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"There is no difference between Yellen Fed and Bernanke Fed and markets like that. She also reassured markets that the Fed is not on autopilot and adjustments will be made if warranted," said Kim Caughey Forrest, a portfolio manager and senior equity analyst at Fort Pitt Capital Group.

Yellen told senators it was difficult to tell how much of the recent decline in U.S. economic growth was due to weather, adding the central bank might consider a pause in its reduction of bond buying if the weakness persists.

In economic news, the number of people applying for unemployment benefits rose last week to match the highest level of 2014, suggesting that progress in a gradually recovering U.S. labor market has slackened off. However, the average of new claims over the past month, usually a more reliable gauge than the up-and-down weekly number, was unchanged at 338,250.

A slowdown in orders over the past few months by American manufacturers was reflected in the durable-goods orders reading for January, however the drop was less than forecast. Orders for U.S. durable goods fell 1.0% in January as demand tapered off for most big-ticket items except military hardware, the government said Thursday. Economists surveyed by MarketWatch had expected orders to fall 2.5%.

Investors kept a close eye on the much-hyped technical level of 1,850 on the S&P 500.

"This market seems to be driven by technical levels, rather than data. If we push through the 1,850, then we will go higher. But if we stay below that market for the next few days, then markets will head south and we will test 1,750," said Uri Landesman, president of Platinum Partners.

In corporate news, Best Buy Co Inc. (BBY) shares rose 5.4% after the retailer said it swung to a fourth-quarter profit, beating forecasts.

J.C. Penney Co. (JCP) jumped 23% to $7.35, after making gains late Wednesday on better-than-expected results.

Mylan Inc. (MYL) shares gained 10.7%, after the pharmaceutical company on Thursday reported fourth-quarter profit above analysts forecasts.

First Solar Inc. (FSLR) shares climbed 6.9%, recovering some of the solar panel maker's sharp losses on Wednesday after its fourth-quarter earnings fell short of expectations.

Sears Holdings Corp. (SHLD) rose 6.3% after the retailer said its losses narrowed compared with the same period a year ago. Nonetheless, U.S. same-store sales fell 6.4%.

Pacific Ethanol Inc. (PEIXD) rallied 48% after the low-carbon renewable-fuel company reported that it swung to a profit in the fourth quarter.

Transocean Ltd. (RIG) shares slid 2.7% after the offshore oil driller on Wednesday said its fourth-quarter earnings fell to 64 cents a share from $1.26 a share earlier.

Overseas, Asian markets were mixed and European stocks fell. Gold prices rose as political turmoil in Ukraine prompted haven buying and the dollar rose against the Russian ruble but weakened against euro.

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