The SPDR S&P Homebuilders ETF closed 0.74 percent higher on Thursday after Bed Bath & Beyond shares popped.
SPDR S&P Homebuilders ETF 5-day performance
Bed Bath & Beyond which reported better-than-expected fourth-quarter earnings Wednesday after the close.
The retailer posted earnings of $1.84 per diluted share on revenue of $3.5 billion. A consensus of analysts polled by Thomson Reuters expected earnings of $1.78 per share on revenue of $3.51 billion.
Shares of Bed Bath & Beyond jumped more than 6 percent in midmorning trade on Thursday, before closing 3.39 percent higher. The stock was the best performer in the ETF.
Bed Bath & Beyond shares 5-day performance
The retailer also raised its quarterly dividend to 15 cents per share from 13 cents.
Despite the earnings beat, some analysts remained cautious. Wedbush reiterated their neutral rating and lowered its price target to $38 from $42.
"With a paradigm shift in consumer shopping behavior, BBBY is struggling to drive traffic to its stores even as it invests in price, services, loyalty programs, free shipping, acquisitions, and many other online and offline initiatives. That combination is continuing to pressure profits," Wedbush analyst Seth Basham said in a note on Thursday.
Longbow Research upgraded Fortune Brands to buy from neutral, with a price target of $72. The stock was on track for its best day since Nov. 7.
—CNBC's Peter Schacknow and Gina Francolla contributed to this report