Analysts are closely watching stocks for signs that the market will stabilize in the second half of the year, but choppy trading has made it difficult to build confidence among investors, particularly given recent fluctuations in oil prices. Some traders questioned the durability of the day's advance following a series of lowered corporate forecasts and mixed economic data.

"Once again, we've pulled oil into the headlines. It seems we always find ourselves with that staring us down anytime we're starting a rally," said Bill Groenveld, head trader for vFinance Investments.

According to preliminary calculations, the Dow Jones industrial average finished up 13.13, or 0.1 percent, at 10,244.49.

The broader gauges also closed in positive range. The Nasdaq composite index added 7.56, or 0.4 percent, to 1,904.08. The Standard & Poor's 500 index gained 3.13, or 0.3 percent, to 1,123.50.

Oil production facilities in the Gulf of Mexico were restaffing after a lashing by Hurricane Ivan that threatened rigs, tossed tankers off course and cut daily production by half. Crude prices inched higher late in the session as traders covered their shorts. Light crude for October delivery was up 30 cents at $43.88 per barrel on the New York Mercantile Exchange.

The Labor Department reported a 0.1 percent increase in the Consumer Price Index, the government's most closely watched inflation gauge. It was a better reading than the 0.2 percent rise forecast by economists, and indicates inflation poses no immediate risk. Analysts said the economic lull earlier this year made it harder for some companies to raise prices.

The inflation data more than offset negative earnings warnings from several companies, including Nortel Networks Corp. Volume was light due to Rosh Hashanah — the Jewish New Year — and ahead of the expiration of options and futures contracts tomorrow.

Much attention has been focused on next week's meeting of the Federal Reserve, when policy-makers are expected to raise the federal funds rate by a quarter point to 1.75 percent. Investors also remained preoccupied with what lies ahead for stocks in the second half, though analysts say they should keep their expectations in check.

"Now through the end of the year there might be some anxiety, but this is the time to really get back to business and make your money in the market," said David Hegarty, head trader at Commerzbank Securities. "We have four more months here, so this is where the action happens.

Advancing issues outnumbered decliners by about 3 to 1 on the New York Stock Exchange. Volume came to 1.11 billion shares, compared to 1.25 billion yesterday.