U.S. stocks were higher with the Dow Jones Industrial Average hitting the 17,000 mark again and the S&P 500 hitting a new record. Investors were cheering on positive economic data as they look forward to Janet Yellen's statement Friday.

"Nothing is really trend changing; we're seeing positive economic data, as we have seen," Dave Rhoda, regional chief investment officer for Wells Fargo Private Bank, told CNBC of Thursday's economic reports, which cast better-than-expected lights on housing, jobs and factory activity.

Some are expecting the Fed to increase interest rates with an annoucement Friday by Yellen. Others are expecting her statement to be relatively calm with no surprising hikes in interest rates.

"In the end, Janet Yellen is the chair, and from the way she's voted in the past, and from the message that she's articulated, she wants broad-based strength in labor markets before moving to a higher-rate environment. We don't see the debate (within the FOMC) as changing the likely outcome," said Rhoda at Wells Fargo Private Bank.

The Dow reacted on the positive news in the markets by rising as much as 95 points. It surpassed the 17,000 mark for the first time since July 29.

The S&P 500 also rose and closed at a record high of 1992.38.

The NASDAQ rose 5.62 points or 0.1 percent. That makes this the sixth out of seven closes with all three indexes up.

For every two shares that fell on the New York Stock Exchange, three gained.

Company News

Hormel Foods shares rose after they reported earnings that beat expectations. Shares were up over four percent at close.

Aeropostale a young-adult clothing retailer fell after they projected that their fourth quarter loss would be wider than expected. In after hours trading, the struggling retailer is down nearly 10 percent.