Stocks were higher on Thursday as market participants search for direction as a recent rally begins to lose forward momentum. The Dow Jones Industrial Average inched modestly higher, while the S&P 500 and Nasdaq Composite both added about 0.2%.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): +0.23% or +9.70 points to 4,283.74

Dow Jones Industrial Average (DIA  ): +0.06% or +18.72 points to 33,999.04

Nasdaq Composite Index (QQQ  ): +0.21% or +27.22 points to 12,965.34

Retail remained in focus on Thursday, with Kohl's (KSS  ) slashing its financial forecast for the year. The retailer now expects sales to fall 5% to 6%, after previously anticipating a modest increase in sales. The company also expects full year earnings to be $2.80 to $3.20 per share, down over half from previous estimates of $6.45 to $6.85.

The retailer said that shoppers are making less trips to stores, spending less money per transaction and are choosing Kohl's less-expensive private brands in response to higher inflationary pressures.

CEO Michelle Gass said in a statement on Thursday that the company is adjusting its business plans and is trimming its inventory "to account for a softer demand outlook."

Elsewhere in retail, shares of Bed Bath & Beyond (BBBY  ) plummeted on Wednesday after a U.S. Securities and Exchange Commission (SEC) filing revealed Ryan Cohen's RC Ventures plans to sell their entire stake in the company. Cohen first disclosed his positions in the company in March, and has not sold any of his 11.8% stake until now.

Bed Bath & Beyond said in a statement Thursday: "We were pleased to have reached a constructive agreement with RC Ventures in March and are committed to maximizing value for all shareholders. We are continuing to execute on our priorities to enhance liquidity, make strategic changes and improve operations to win back customers, and drive cost efficiencies... Specifically, we have been working expeditiously over the past several weeks with financial advisor and lenders on strengthening our balance sheet, and the Company will provide more information in an update at the end of this month."

For economic data, the Labor Department's weekly jobless claims showed fewer Americans than anticipated filed for initial unemployment insurance last week, totaling 250,000 and down 2,000 from the previous week. However, continuing claims, which run a week behind the headline, totaled 1.437 million, an increase of 7,000.

The Federal Reserve watches jobless claims data to assess the strength of the labor market in the face of inflation running near 40-year highs.

Separately, sales of existing U.S. homes fell nearly 6% in July compared to June, as the housing market shows more signs of recession. Monthly sales declined to a seasonally adjusted annualized rate of 4.81 million units, according to the National Association of Realtors report.

On an annual basis, sales of previously owned homes fell about 20% in July.

"In terms of economic impact, we are surely in a housing recession because builders are not building," said Lawrence Yun, chief economist for NAR, in a statement. "However, are homeowners in a recession? absolutely not. Homeowners are still very comfortable financially."