NEW YORK (CNNMoney.com) -- Stocks ended a volatile session higher Thursday as the government's most recent debt auction saw solid demand and a rise in oil prices boosted shares of energy producers.

The Dow Jones industrial average (INDU) rose 103 points, or 1.2% while the broader S&P 500 (SPX) added 14 points, or 1.5%. The Nasdaq composite (COMP) gained 1.2%, adding 20 points.

Oil prices rose above $65 a barrel. ConocoPhillips (COP, Fortune 500), Exxon Mobil (XOM, Fortune 500) and Chevron (CVX, Fortune 500) all posted gains.

Bank stocks also rose, with Goldman Sachs (GS, Fortune 500) up 3% and JPMorgan (JPM, Fortune 500) rising nearly 6%.

Stocks had seesawed for most of the session on mixed economic news. But gains accelerated later in the day after the government said it saw healthy demand for Thursday's auction of 7-year notes. That tempered some fears that a rebound of borrowing costs, particularly mortgage rates, could derail an economic recovery.

Investors mostly shrugged off an agreement between General Motors and bondholders on a debt for equity swap. The agreement does not mean the troubled automaker will avoid bankruptcy.

John Wilson, chief technical strategist at Morgan Keegan, said the market is undergoing a process of "sideways consolidation."

After climbing about 30% from the lows of early March, stocks have settled into a narrow range as investors look for more convincing signs that an economic recovery is in the works, he said.

"As this trading range narrows, the market is going to be forced to go one way or the other," he said.

Housing: New home sales in April rose 0.3% at a seasonally adjusted annual rate of 352,000 from a revised rate of 351,000 the month before, according to government figures.

Economists surveyed by Briefing.com had expected an April sales rate of 360,000, while March sales were originally reported at a 356,000 rate.

At the current rate, it would take more than 10 months to sell through the existing inventory of homes on the market, according to the report.

Separately, the number of foreclosure actions started in the first three months of 2009 rose to a record high, according to the Mortgage Bankers Association.

The National Delinquency Survey showed that more than 616,000 home owners were hit with foreclosure actions in the quarter. That's up 27% from the last three months of 2008, and the largest quarter-over-quarter increase in foreclosure starts since the MBA began keeping records in 1972.

Economy: A report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.

Initial jobless claims fell to 623,000 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.

Claims were expected to decline to 628,000, according to economists surveyed by Briefing.com.

Durable goods orders jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.

"The economic picture continues to be choppy," said Ryan Larson, senior equity trader at Voyager Asset Management. "We're in an environment where the market is dictated by headlines, and the headlines aren't very good."

Bonds: Treasury prices rose, with the yield on the benchmark 10-year Treasury note falling to 3.63% from Wednesday's 6-month high of 3.71%. Bond prices and yields move in opposite directions.

The Treasury Department said it received $58.7 billion worth of bids for the $26 billion in 7-year notes offered Thursday. That made for a bid-to-cover ratio of 2.26, reflecting relatively strong demand.

"With yields rising its making it harder for people to borrow money," Larson said. "That calls into question the government's ability to keep rates low and get credit flowing again."

Mortgage rates, which are pegged to Treasury yields, jumped in the most recent week. The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday from 5.24% last week.

Companies: Shortly after the closing bell, personal computer maker Dell (DELL, Fortune 500) reported first-quarter adjusted earnings of 24 cents per share, slightly better than the 23 cent profit analysts had expected. Still, net income fell 63% as PC sales dipped sharply.

Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) announced that it would separate itself from online service company AOL. Time Warner said AOL would be spun into a separate publicly traded company.

GM (GM, Fortune 500) shares rose after the troubled automaker said major bondholders have accepted a revised deal to swap debt for equity. However, the deal does not mean that the company will avoid filing for bankruptcy, which could happen at the end of this week if certain other restructuring efforts fail.

Other markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares ended lower with the DAX in Germany falling 1.3%.

In currency trading, the dollar was mixed against rival currencies. It fell against the euro but rose against the pound and the yen, jumping 1.5% against the Japanese currency.

NYMEX crude oil for July delivery rose $1.63 to settle at $65.08 a barrel, after climbing to a high of $65.35. The rally came after the government said U.S. crude stocks fell more than expected last week.

COMEX gold for August delivery rose $8.20 an ounce to $961.50. 

NEW YORK (CNNMoney.com) -- Stocks gave back early gains Thursday after the government reported a smaller-than-expected rise in new home sales.

The Dow Jones industrial average (INDU) was down 37 points, or 0.5%, about 30 minuets into the session. The S&P 500 (SPX) lost 4 points, or 0.5%. The Nasdaq composite (COMP) slumped 0.9%, giving back 15 points.

Stocks sold off near the close of the previous session as bond yields and mortgage rates spiked, raising concerns that higher borrowing costs could stifle an economic recovery.

Economy: New home sales in April rose 0.3% at a seasonally adjusted annual rate of 352,000 from a revised rate of 351,000 the month before, according to government figures.

But the increase was smaller than expected, and the previous month's figures were revised sharply lower. Economists surveyed by Briefing.com had expected a sales rate of 360,000. March sales were originally reported at a rate of 356,000.

Earlier, a report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.

Initial jobless claims fell to 623,00 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.

Claims were expected to have declined to 628,000, according to a consensus of economist opinion from Briefing.com.

Orders for durable goods jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.

Bonds: The yield on the benchmark 10-year Treasury note slipped to 3.64% after surging to a 6-month high of 3.71% Wednesday. Bond prices and yields move in opposite directions.

Mortgage rates, which are pegged to Treasury yields,jumped in the most recent week. The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday from 5.24% last week.

Companies: Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) announced that it would separate itself from online service company AOL. Time Warner said that AOL would be spun into a separate publicly traded company.

After the closing bell, personal computer maker Dell (DELL, Fortune 500) is expected to report first-quarter earnings of 23 cents per share, down from 38 cents per share a year ago.

GM (GM, Fortune 500) shares rose after the troubled automaker said major bondholders have accepted a revised deal to swap debt for equity. However, the deal does not mean that the company will avoid filing for bankruptcy, which could happen at the end of this week if certain other restructuring efforts fail.

Other markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.

In currency trading, the dollar rose versus the euro, but slipped against the yen and the British pound.

NYMEX crude oil for July delivery prices rose 55 cents a barrel to $64.01.

COMEX gold for August delivery rose $6.40 an ounce to $961.60. 

NEW YORK (CNNMoney.com) -- Stocks opened higher Thursday as unexpectedly strong economic data and Time Warner's plan to separate from AOL helped sooth some jitters about rising Treasury yields.

The Dow Jones industrial average (INDU) was up 72 points, or 0.8%, shortly after the opening bell. The S&P 500 (SPX) gained 8 points, or 0.9%. The Nasdaq composite (COMP) advanced 1%, adding 17 points.

Oil prices rose near $64 a barrel. The dollar jumped 1.7% against the Japanese yen but was mixed against other rival currencies.

Stocks sold off near the close of the previous session as bond yields and mortgage rates spiked, raising concerns that higher borrowing costs could stifle an economic recovery. Investors also eyed fresh signs Wednesday that General Motors (GM, Fortune 500) is headed for bankruptcy.

The yield on the benchmark 10-year Treasury note slipped to 3.64% after surging to a 6-month high of 3.71% Wednesday. Bond prices and yields move in opposite directions.

Mortgage rates, which are pegged to Treasury yields,jumped in the most recent week. The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday, up from 5.24% last week.

Economy: Two reports showed improvement in the economy. A report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.

Initial jobless claims fell to 623,00 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.

Claims were expected to have declined to 628,000, according to a consensus of economist opinion from Briefing.com.

Orders for durable goods jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.

A reading on new home sales, due after the market open, is expected to rise to an annual rate of 360,000 in April from the prior month's 356,000, according to the Briefing.com consensus.

Companies: Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) announced that it would separate itself from online service company AOL. Time Warner said that AOL would be spun into a separate publicly traded company.

After the closing bell, personal computer maker Dell (DELL, Fortune 500) is expected to report first-quarter earnings of 23 cents per share, down from 38 cents per share a year ago.

GM shares were halted Thursday after reports the troubled automaker has reached an agreement with bondholders. However, the deal does not mean that the company will avoid filing for bankruptcy, which could happen at the end of this week if certain other restructuring efforts fail.

World markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.

Money and oil: The dollar rose versus the euro, but slipped against the yen and the British pound. Oil prices rose 32 cents a barrel to $63.77 after touching a high of $63.93 earlier in the session. 

NEW YORK (CNNMoney.com) -- U.S. stocks were set to open slightly higher Thursday, as investors worried kept about rising bond yields and awaited a wave of economic reports.

At 7 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were narrowly higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks plummeted Wednesday as bond yields spiked and investors eyed fresh signs that General Motors (GM, Fortune 500) is headed for bankruptcy. The Dow and S&P both shed about 2%, while the Nasdaq lost 1%.

Peter Cardillo, chief market economist for Avalon Partners, said that high bond yields and "a fear factor of government spending, crowding out the market" could continue to haunt the stock markets Thursday.

The government has been issuing massive amounts of debt in recent weeks in an effort to stimulate the sluggish economy. Some $101 billion is being sold this week, including a $26 billion 7-year auction later Thursday.

"We're probably headed for a mixed session, unless we get a real surprise in economic data," said Cardillo.

Economy: A report on weekly jobless claims is due out at 8:30 a.m. ET, as is a reading on orders for big-ticket items.

Initial jobless claims are expected to have declined to 628,000 in the week ended May 25 from 631,000 the prior week, according to a consensus of economist opinion from Briefing.com.

Orders for durable goods are expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a decline of 0.8% the prior month.

A reading on new home sales, due after the market open, is expected to to rise to an annual rate of 360,000 in April from the prior month's 356,000, according to the Briefing.com consensus.

Companies: Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) is expected to announce the separation of online service AOL into a separate company, the Wall Street Journal reported Thursday. A spokesman for Time Warner, parent of CNNMoney.com, declined comment on the story.

World markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.

Money and oil: The dollar rose versus the yen, but slipped against the euro and the British pound. Oil prices were little changed, edging up 3 cents a barrel to $63.48. 

NEW YORK (CNNMoney.com) -- Stocks fell Wednesday, giving back gains from the previous session, after a sharp rise in Treasury yields added to jitters over a looming bankruptcy for General Motors.

The Dow Jones industrial average (INDU) fell 173 points, ending the day 2% lower. The S&P 500 (SPX) lost 17 points, or 1.9%. The Nasdaq composite (COMP) slid 1.1%, giving up 19 points.

Stocks had traded mixed for most of the session as concerns that GM will not be able to avoid bankruptcy overshadowed an encouraging housing report. But the selloff gained momentum in the afternoon as the yield on the benchmark 10-year bond jumped to a 6-month high.

Shares of energy producers fell even as the price of oil rose above $63 a barrel. Technology stocks, which had led gainers for most of the day, also ended lower.

Peter Cardillo, chief market economist at Avalon Partners, said the surge in the 10-year yield, along with other economic concerns, prompted many investors to cash in the previous session's gains.

"Today's economic news was somewhat mixed," he said. "It's an excuse to lighten up some positions after yesterday's rise."

Wall Street rallied Tuesday after an upbeat reading on consumer confidence revived some of the economic optimism that has lifted the market 30% from its lows in early March. But analysts say the market has settled into a range as investors look for more concrete evidence of economic growth.

"In general, we are at a point in the marketplace where it's going to take a big catalyst to get us moving upward again," said Art Hogan, chief market analyst at Jefferies & Co.

Bonds: Treasury prices fell, with the yield on the benchmark 10-year bond rising to 3.71% - it's highest since mid-November. It stood at 3.51% late Tuesday. Treasury prices and yields move in opposite directions.

Treasurys sold off shortly after the government said it received relatively healthy demand for Wednesday's $35 billion worth of 5-year notes.

Bill Larkin, a fixed-income analyst at Cabot Money Management, said many investors think strong demand for short-term U.S. debt suggests that there could be fewer buyers for longer-term bonds.

"There's an imbedded risk for longer-dated government-backed securities," he said. "That, along with signs of a strengthening economy, are two big negatives in bond land."

The increase also raised concerns that mortgage rates, which are tied to the 10-year yield, could head higher and stifle a recovery in the housing market.

Additionally, many analysts worry that the record amounts of debt coming to the market could overwhelm demand for Treasurys as the government expands already massive budget deficits.

Autos: GM (GM, Fortune 500) confirmed reports that bondholders rejected an offer from the company to trade $27 billion of debt for equity stakes, making it much more likely that GM will declare bankruptcy.

The company faces a June 1 deadline to win concessions from its union, creditors and other parties or be forced into bankruptcy by the U.S. Treasury Department, which is funding GM's operations. Shares fell 19%.

Chrysler LLC, which went into Chapter 11 bankruptcy late last month, will learn soon whether it can sell its best-performing assets to a newly formed version of itself, called Chrysler Group.

Economy: Sales of existing homes increased 2.9% in April to 4.86 million homes sold, up from a downwardly revised figure of 4.55 million in March, according to the National Association of Realtors.

April sales were slightly ahead of expectations. Analysts surveyed by Briefing.com had forecast a rate of 4.66 million units. But sales are still off 3.5% from the 4.85 million homes sold 12 months ago.

Wednesday's housing data followed a report issued Tuesday that showed the drop in home prices deepened during the first three months of the year.

Separately, a survey released Wednesday showed that business economists expect the recession to end this year. Almost three out of four survey respondents believe the recession will end by the third quarter of 2009, the report said.

Banks: The FDIC said that the number of banks on its so-called "problem bank" list jumped to 305 during the first three months of the year, up from 252 in the fourth quarter of last year. This is the highest number of troubled institutions since 1994.

Shares of Bank of America (BAC, Fortune 500) rose 1% after the company said it was "well on its way" towards raising the nearly $34 billion in capital that government regulators said it needs to buffer against future loan losses.

Companies: Monsanto (MON, Fortune 500), the world's largest seed company, said it expects 2009 fiscal-year results to be at the low end of its earnings forecast. The company said stronger-than-expected competition in the herbicides business prompted the warning. Shares fell 6%.

Office supplies retailer Staples (SPLS, Fortune 500) reported a one-third drop in quarterly profit to $147 million, or 20 cents per share, but still managed to beat analyst expectations. Excluding restructuring expenses, Staples reported earnings of 22 cents per share, one cent ahead of the analyst consensus estimate from Thomson Reuters. The stock fell 1.7%.

Other markets: Stocks in Asia soared, boosted by the overnight gains on Wall Street. European markets edged higher in midday trading.

In currency trading, the dollar rose against the euro and the yen. It slipped against the pound, with the U.K. currency rising above $1.60.

NYMEX oil for July delivery was rose $1 to settle at $63.45 a barrel. Saudi Oil Minister Ali al-Naimi said Wednesday that the global economy was capable of managing with oil as high as $75 to $80 a barrel, according to Reuters.

COMEX gold for August delivery closed at 953.30 an ounce, unchanged from Tuesday.