The Labor Department said jobless claims rose by 5,000 last week to 333,000, slightly lower than expected.
Even with the modest declines this week, stocks are still up 18% to 23% this year.
"August historically has a slight bearish bias to it and volume is very low," said Ryan Detrick, an analyst at Schaeffer's Investment Research. "So far that is exactly what we've seen."
Groupon, Tesla lead the charge: Investors cheered strong earnings from Groupon and Tesla.
Groupon ( surged after the daily deals site )posted strong sales and announced a $300 million share-buyback program. The rally bumped Groupon's market valuation to $7 billion, well above the benchmark $6 billion figure that Google (Fortune 500) reportedly offered for the company in 2011. ,
Tesla ( shares rallied after the electric-car maker reported )a surprise quarterly profit. Tesla's Model S also got the top crash test rating from the government and the stock was generating plenty of buzz among traders on StockTwits.
But Solar City (, which is chaired by Tesla CEO )Elon Musk, reported a wider loss than analysts had expected. The stock tumbled on the news. But one trader still expressed support for all things Elon Musk.
Green Mountain Coffee Roasters ( shares fell following quarterly sales figures that missed expectations. )
But the news from Green Mountain was not all bad. It's earnings beat expectations and some investors were hopeful the stock price would rebound.
T-Mobile ( topped revenue forecasts and said it had a net addition of 1.1 million customers during the quarter. ) Apollo Global Management ( swung to a quarterly profit and )
Priceline.com ( rose in after-hours trading after the company released earnings that beat expectations. The stock is set to )move even closer to $1,000. Shares were trading around $970 after the closing bell. And shares of Priceline competitor Orbitz ( soared more than 35% after it reported solid earnings. )
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