Investing.com - U.S. stocks blew off a dismal U.S. first-quarter report on gross domestic product and rose on Thursday amid sentiments more upbeat growth figures are just around the corner.
At the close of U.S. trading, the Dow 30 rose 0.39%, the S&P 500 index rose 0.54%, while the NASDAQ Composite index rose 0.54% as well.
The Volatility S&P 500 index, which measures market volatility, was down 0.94% at 11.57.
The Bureau of Economic Analysis revealed earlier that the U.S. gross domestic product contracted 1.0% in the first quarter, after a preliminary estimate showed growth of 0.1%.
Market expectations had been for a 0.5% contraction. It was the first decline in U.S. GDP since the first quarter of 2011, though stocks shrugged off the news, dismissing the weak figure as no surprise due to rough winter weather.
The data also reminded investors that even when the Federal Reserve winds down stimulus programs, rate hikes won't come for some time afterwards.
The report also contained positive data.
Consumer spending, which drives more than two-thirds of U.S. economic activity, increased by 3.1%, up from the preliminary estimate of 3.0%.
Elsewhere, the National Association of Realtors reported that its pending home sales index rose 0.4% in April, missing expectations for a 1% gain.
Separately, the Department of Labor said the number of individuals filing for unemployment assistance in the U.S. last week fell by 27,000 to 300,000, exceeding expectations for a decline of 9,000.
In other news, Treasury yields crept up, which gave stocks support.
Low yields in the recent past had many worried the bond market was predicting a slowdown in U.S. recovery, though traders dismissed the data as a sign fixed-income investors are preparing for an end to central bank stimulus measures around the world, with low yields not reflecting a U.S. soft spot.
Elsewhere, Tyson Foods Inc (NYSE:TSN) offered to acquire Hillshire Brands Company (NYSE:HSH) for $50 a share.
Warehouse club operator Costco Wholesale Corporation (NASDAQ:COST) reported third-quarter results that missed market estimates.
Leading Dow Jones Industrial Average performers included Merck & Company Inc (NYSE:MRK), up 2.26%, UnitedHealth Group Incorporated (NYSE:UNH), up 1.00%, and Dupont Fabros Technology Inc (NYSE:DFT), up 0.81%.
The Dow Jones Industrial Average's worst performers included Cisco Systems Inc (NASDAQ:CSCO), down 0.60%, Goldman Sachs Group Inc (NYSE:GS), down 0.32%, and Chevron Corporation (NYSE:CVX), down 0.17%.
European indices, meanwhile, ended the day largely lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 0.10%, France's CAC 40 fell 0.02%, while Germany's DAX fell 0.02%. Meanwhile, in the U.K. the FTSE 100 rose 0.29%.
On Friday, the U.S. is to round up the week with a report on personal income and expenditure as well as revised data from the University of Michigan on consumer sentiment.