Today, the Dow Jones industrial average closed up 19.75 to 12,530.05, the broader S&P 500 closed up 1.60 to 1,439.37, and the Nasdaq closed up 8.36 or 0.34% to 2458.69.

Market breadth was positive. On the New York Stock Exchange, winners topped losers 17 to 14 on volume of 1.40 billion shares. On the Nasdaq, decliners topped advancers by a narrow margin of 15 to 14 on volume of 1.77 billion shares.

Investors welcomed developments in Iran and a drop in oil prices but held back amid a slew of weak reports on the economy. The market is certainly treading water after a strong day yesterday. Additionally, there is some nervousness about the first-quarter earnings reporting period, which gets rolling later in the month.

In economic news, factory orders rose 1% in February after falling a revised 5.7% in January. This is against the expected 1.9% rise. The Institute for Supply Management's service sector index fell to 52.4 in March from 54.3 in February. Economists thought it would rise to 54.7. Employers added 106,000 private sector jobs in March. The figure was short of expectations and raised concerns ahead of the more closely watched monthly report from the Labor Department, expected Friday.

Stock of Microsoft (Nasdaq: MSFT) closed up $0.63 to $28.50, after Citigroup raised its fiscal third-quarter earnings estimates for the company, reflecting what it said was the successful launch of Windows Vista and Office 2007.

Shares of Best Buy (NYSE: BBY) closed down $1.24 to $47.89, despite reporting higher quarterly earnings that topped estimates. It reported an 18.5% rise in fourth-quarter profit, helped by sales of flat-panel televisions, and announced that it plans to offer Apple computers in 200 stores this year. Net income for the fiscal fourth quarter ended March 3 rose to $763 million, from $644 million a year earlier. Revenue increased 21% to $12.9 billion, and same-store sales increased 5.9%.

Shares of Daimler Chrysler (NYSE: DCX) closed down $0.38 to $82.57, after the CEO confirmed that the company is talking with potential buyers about its money-losing Chrysler unit. However, he was not able to give details of discussions and said all options for the automaker are still on the table.

U.S. light crude oil for May delivery fell 26 cents to settle at $64.38 a barrel on the New York Mercantile Exchange after Iran's president pardoned and pledged to release the 15 British sailors and marines being held. The apparent resolution to the standoff provided some comfort to investors.