Late recovery gives S&P 500 another record close

Investors remained in a record-setting mood Thursday.

The Standard & Poor's 500 index closed at an all-time high for the second day in a row and notched its fifth gain in as many days.

The Dow Jones industrial average and Nasdaq composite ended mixed after drifting between small gains and losses for much of the day.

The Labor Department reported that applications for unemployment benefits fell last week to 312,000, the lowest in more than six years. The Conference Board added to the good news, saying its index of leading indicators rose 0.5 percent in May from the previous month.

The market began to drift lower, however, as investors looked beyond the economic data and focused instead on a mixed bag of corporate earnings from such companies as Kroger, Rite Aid, Coach, and Pier 1 Imports. A late push elevated the S&P 500 and Dow barely higher on the day.

The S&P 500 index rose 2.50 points, or 0.13 percent, to 1,959.48. That's slightly above the prior day's record close of 1,956.98. The last time the index closed at a record high was June 9.

The Dow Jones industrial average added 14.84 points, or 0.09 percent, to 16,921.46. The Nasdaq composite slipped 3.51 points, or 0.08 percent, to 4,359.33.

All three indexes are up for the year.

Despite its upward bent, the market has been mostly registering small moves, reflecting a cautious mood on the part of many investors heading into summer, as well as lingering concern over the possible fallout from the crisis in Iraq and questions over the resiliency of the U.S. economy.

On Thursday, investors waded through a mixed bag of corporate news.

Kroger rose $2.39, or 5.1 percent, to $49.66 after the supermarket operator raised its earnings forecast for the year. American Apparel jumped 6.7 percent after the company's board said it would fire the CEO. The stock rose 4 cents to close at 68 cents.

Other companies didn't fare as well.

Rite Aid, of Camp Hill, Pa., reported its fiscal first-quarter earnings sank 55 percent due to higher-than-expected drug costs and other expenses. The stock fell 26 cents, or 3.5 percent, to $7.18.

Pier 1 Imports tumbled 13.1 percent after the furniture retailer's quarterly profit fell short of Wall Street expectations. The company also lowered its full-year forecast. The stock fell $2.40 to $15.86.

Coach, the maker of luxury goods, fell after the company said it would shutter about 70 underperforming stores. The stock fell $3.50, or 8.9 percent, to $35.69.