Investors were hoping for a hint of how the Federal Reserve, which meets later this month, will formulate its monetary policy for the coming months. But today's economic reports gave the market little guidance.

"Investors are parsing every bit of economic data for an indication that the Fed is willing to step aside" and end its year-long streak of rate hikes, said Joseph Keating, chief investment officer at AmSouth Asset Management.

According to preliminary calculations, the Dow Jones industrial average rose 12.28, or 0.12 percent, to 10,578.65 after moving in and out of positive territory for much of the session. The Dow also inched higher the first three days of the week — an indication that investors, while uninspired by the economic data, are finding few reasons for a big selloff.

Broader stock indicators also closed narrowly higher. The Standard & Poor's 500 index rose 4.35, or 0.36 percent, to 1,210.93.

The Nasdaq composite index closed up 14.23, or 0.69 percent, at 2,089.15.

The Commerce Department reported that housing starts edged up 0.2 percent in May, slightly less than expected, but the level of new construction permits remained strong, a sign of continuing strength in the sector.

The Labor Department said jobless claims were up 1,000 to 333,000 last week, in line with expectations. Recent claim levels have been moderate, but analysts expect auto industry layoffs to send them higher in July.

A report from the Philadelphia Federal Reserve that its regional economy was contracting sent stocks down temporarily. Philadelphia-area manufacturers saw overall activity fall in June, the first negative reading in 25 months, according to the unexpectedly weak report.

Stocks are likely to trade in a narrow range until the June 29-30 meeting of the Fed's policy makers. The Fed is expected to raise short-term interest rates for the ninth time when it meets next, continuing the rate hikes that began last year.

The market's focus will be the Fed's accompanying assessment of the economy; investors are looking for signs that the string of rate hikes is coming to an end.

While Wall Street's conventional wisdom is that rate hikes will end with the Fed's August meeting, some analysts say rate hikes — and the attendant sideways movement that has characterized stocks for the past 17 months — will continue.

"The market is too high, short-term interest rates are too low and long-term interest rates are really low," said Linda Duessel, market strategist and senior portfolio manager at Federated Investors in Pittsburgh, Pa. "The least expected outcome (for stocks) is a strong move up."

Economically sensitive stocks, including raw materials producers, were among the market's best performers today.

"Commodity stocks, which were left for dead two weeks ago, have turned the corner, which indicates that the economy isn't going in the Dumpster like a lot of people think," said Gary Kaltbaum, an independent money manager in Orlando, Fla.

Aluminum maker Alcoa Inc. was up 37 cents to $27.93, while United States Steel Corp. rose 71 cents to $41.42.

Bonds lost ground, with the yield on the 10-year Treasury note rose to 4.11, from 4.10 late yesterday. Oil prices climbed by 93 cents to $56.50 a barrel on the New York Mercantile Exchange. News that Russian oil output was down 3.4 percent in April and concerns about refining capacity boosted oil prices.

Beleaguered General Motors Corp. slumped 2 percent, or 72 cents, to $35.62 on reports the United Auto Workers would refuse cuts in health care benefits ahead of a contract expiration in 2007. The automaker had said it hopes to cut $2 billion in health costs by the end of 2006, but union officials are threatening a strike if the company slashes benefits without their involvement.

Goldman Sachs Group Inc. rose $3.46 to $102.65 despite reporting a sharp drop in earnings as investment banking and trading revenues fell. Profits of $1.71 per share missed analysts' estimates by 10 cents, but the company was upbeat about its performance in the coming quarter.

Pfizer Inc. rose 17 cents to $28.60 on news it was planning to buy Italian biotechnology company Vicuron Pharmaceuticals Inc., which makes infection fighting medication, for $1.9 billion. Vicuron shares climbed $12.41, or 78.5 percent, to $28.21.

SBC Communications dropped 6 cents to $23.95 after the company said it would take a second-quarter pretax charge of $236 million to end a service agreement with WilTel Communications. SBC, which is in the process of acquiring AT&T Corp., will switch most of its long-distance service to AT&T's network.

Advancing issues led decliners 2 to 1 on the New York Stock Exchange, where volume came to 1.39 billion shares, even with the 1.39 billion shares traded yesterday.

The Russell 2000 index of smaller companies rose 6.84, or 1.1 percent, to 644.03.

Overseas, Japan's Nikkei stock average rose 0.5 percent. Britain's FTSE 100 was up 25.5 percent, Germany's DAX index was up 31.45 percent and France's CAC-40 was up 0.79.