Some highlights from the day's business news:

Stocks end at fresh multi-year highs

U.S. stocks ended at fresh multi-year highs Thursday, as investors focused on an upbeat manufacturing report and looked past indications that inflation is heating up.

The Dow Jones industrial average edged up 30 points, or 0.2%, to 12,318.14, with 21 of the Dow's 30 components heading higher. Shares of Intel led the advance, while American Express lagged.

The S&P 500 rose 4 points, or 0.3%, with Sears Holding leading the way. Meanwhile, the Nasdaq ticked up 6 points, or 0.2%, with Research in Motion among the biggest gainers.

All three of the major indexes finished the session at their highest levels in more than two years for a second day on Thursday.

Warning: Bond market volatility ahead

The bond market has been rocky over the past month, and analysts say we're in store for a rollercoaster ahead.

Investors have a lot on their minds: the deficit, interest rates, inflation and Middle East unrest, as well as continued recovery concerns. And concern is growing that Treasury yields are too low.

"Going forward, the market is going to be more volatile than it's been in a long time," said Kenneth Naehu, managing director and head of fixed income at Bel Air Investment Advisors.

"The current market isn't one for people to buy in and then sit there," he added. "You need to be actively watching your exposure."

The 10-year yield had been stuck in a month-long rut below 3.5%, but it has ticked slightly higher over the last two weeks. But the benchmark note's yield - which affects interest rates on everything from savings accounts to home loans - has struggled to move much higher than 3.6%.

– CNNMoney.com's Blake Ellis and Julianne Pepitone contributed to this report.