Wall Street on Thursday brushed aside news that third-quarter economic activity was the worst in seven years, and instead pushed the Dow back above the 9000 level in a broad rally. 

Today’s Market

The Dow Jones Industrial Average jumped 189.73 points, or 2.11%, to 9180.69, the broader S&P 500 added 24 points, or 2.58%, to 954.09 and the Nasdaq Composite picked up 41.31 points, or 2.49%, to 1698.52. The consumer-friendly FOX 50 rose 12.84 points, or 1.79%, to 731.19.

The markets moved in a wide range once again as Wall Street saw another dramatic late-day move. Unlike Wednesday's late selloff, stocks surged at the end of the day, ending near session highs and holding onto most of this week's big gains. 

"I like the market action today given the GDP number….It’s all being taken with so much caution,” said Steve Sachs, director of trading at Rydex Investments. “It’s still too early to tell as to whether or not we’ve seen a bottom on this move or not.”

The rally marks just the sixth winning day of the month on the Dow, putting the index on pace for its worst monthly performance since August 1974.

In addition to the latest economic reports, the markets were lifted by another overnight rally in Asian markets, where indexes soared by double-digit percentages, and by the best quarterly profit in ExxonMobil’s (XOM) history.

All but five of the 30 components of the Dow closed higher led by Intel (INTC) and Hewlett-Packard (HPQ).  Disney (DIS) and JPMorgan Chase (JPM) also saw huge gains. On the other hand, General Motors (GM) and Johnson & Johnson (JNJ) closed in the red. 

The tech-heavy Nasdaq Composite saw even more strength than the broader market, ending the day in the green for the third straight session. The index was lifted by big gains from blue-chip tech names like Apple (AAPL) and Oracle (ORCL). 

“People are feeling good. This is the best mood I’ve seen on the floor in a number of weeks,” NSYE trader Bernard McSherry of Cuttone & Company told FOX Business. 

A new report from the Commerce Department that showed the U.S. economy contracted in the third quarter, but not by as much as many had feared.  The government said gross domestic product declined by 0.3% last quarter -- the worst performance since a 1.4% decline in the 2001 recession. While the numbers weren’t pretty, Wall Street had been fearing a contraction of 0.5%.

Nonetheless, the GDP report, which is the most widely watched indicator of economic activity, only raises the odds the U.S. is in or headed toward a recession. Economists typically define a recession as two consecutive quarters of negative growth.

The most ominous part of the Commerce Department report was a 3.1% drop in consumer spending in the third quarter -- the steepest decline since the second quarter of 1980. Consumer spending, which accounts for 70% of GDP, has dropped off dramatically amid scary economic headlines, a serious financial crisis and high levels of unemployment.

Another economic report released Thursday showed the U.S. labor market remains in a precarious state as initial jobless claims were unchanged last week at 479,000 people. The report was basically in-line with expectations but showed claims are still higher than they were during the 2001 recession.

In an effort to fight the slowing economy, the Federal Reserve slashed interest rates on Wednesday, sending the Federal Funds target to the lowest level since 2004. That move sparked a rally in Asia, where Hong Kong’s Hang Seng soared 10% and Japan’s Nikkei 225 surged 12.8%.

Still, reminders of the struggling economy came in the form of another round of earnings reports from companies like Cigna (CI), Deutsche Bank (DB) and Motorola (MOT). While those companies reported sharp declines in quarterly profits, they managed to exceed Wall Street's lowered expectations.

Energy stocks were lifted by ExxonMobil’s (XOM) 58% surge in third-quarter profit to $14.83 billion. Excluding one-time items, the energy giant earned $2.59 per share, topping expectations of $2.39.

Meanwhile, crude oil prices pulled back following the best daily gains in more than a month. The price of a barrel of crude ended at $65.96, down $1.54. Crude prices have closed lower in four of the last five sessions and are off by 55% from all-time highs set in July. 

Corporate Movers

American Express (AXP) released plans to slash 7,000 jobs as part of a plan to save $1.8 billion next year. 

GMAC LLC confirmed earlier reports that it is in talks with the government about transforming into a bank holding company, a move that would allow it to participate in the government's rescue plan.  

Hartford Financial (HIG) plummeted 40% a day after the insurer reported a huge quarterly loss and slashed its outlook. Hartford lost $2.6 billion on a net basis, though its core loss of $1.40 per share beat expectations. 

Colgate Palmolive (CL) posted a 19% rise in third-quarter profit as revenues rose 13% to $3.99 billion. Excluding one-time items, Colgate earned 99 cents a share, exceeding expectations by a penny.  

CBS (CBS) reported a massive loss of $18.58 a share in the third quarter as the media giant took $14.1 billion in writedowns. Excluding one-time charges, CBS earned 43 cents per share, matching estimates.

Deutsche Bank (DB) avoided a third-quarter loss but still saw its earnings decline by 73% from a year ago. The largest German bank's profit of 414 million euros topped expectations. 

CVS Caremark (CVS) soared double-digit percentages after the retailer said it expects to post sales growth in the current quarter. 

Motorola (MOT) posted a better-than-expected third-quarter profit of 5 cents per share but issued a cautious outlook for the current quarter. Motorola also said it will cut 3,000 jobs, mostly from its cell phone unit. 

Eastman Kodak (EK) tumbled after the company cut its outlook and reported a third-quarter profit of 22 cents per share that matched estimates. 

International Paper (IP) posted a 31% decline in profit but managed to beat Wall Street's expectations with an adjusted-profit of 77 cents per share. However, the company's revenue of $6.8 billion missed estimates.