Videogame retailer GameStop Corp. on Thursday reported a 25 percent decline in profit for the first quarter on lower revenue as well as comparable store sales. However, both revenue and earnings per share beat analysts' estimates. Looking ahead, the company forecast earnings for the second quarter below analysts' estimates, but raised the lower end of its fiscal 2013 earnings guidance range.

In another upbeat sign for the U.S. housing market, the Commerce Department released a report on Thursday showing that new home sales came in well above economist estimates in the month of April. The report showed that new home sales climbed 2.3 percent to a seasonally adjusted annual rate of 454,000 in April from the revised March rate of 444,000.

Comprehensive immigration reform legislation took a step toward approval on Tuesday, as the members of the Senate Judiciary Committee voted to send the bill to the Senate floor. The Senate Judiciary Committee voted 13 to 5 in favor of the bill, with three Republicans joining with the panel's ten Democrats in voting to support the legislation.

While stocks moved sharply lower at the start of trading on Thursday, selling pressure waned not long after the open. The markets have subsequently seen a notable recovery attempt, as some traders look to pick up stocks at reduced levels. The major averages have climbed well off their worst levels but are currently still posting modest losses.