US stocks recover from an early loss

U.S. financial markets drifted higher in afternoon trading today, recovering from a steep decline earlier in the day and putting indexes on track for their first broad gain in a week.

The rebound was a stark turnaround for the major stock indexes, which swung widely a day earlier and appeared headed for another slump earlier today after declines in European markets.

Investors were combing through the latest batch of corporate earnings and a dash of new economic data for clues about the prospects for global economic growth. A key highlight: U.S. unemployment aid applications fell last week to the lowest level in 14 years, another sign that the job market is strengthening.

"We had some positive economic data that reminded everybody that the economy is doing quite well," said Randy Frederick, a managing director of trading and derivatives with the Schwab Center for Financial Research.