NEW YORK (CNN/Money) -
Stocks gained early Thursday, boosted by a report showing that the economic growth is on track, but that inflation remains contained.
The Dow Jones industrial average (down 45.88 to 10,457.80, Charts), the broader Standard & Poor's 500 (up 3.92 to 1,193.93, Charts) index and the Nasdaq composite (up 9.04 to 2,059.21, Charts) index all gained solidly in the early going.
Gross domestic product (GDP) growth in the first quarter was revised upward to a 3.5 percent annual rate. That was shy of economists forecasts for a 3.6 percent rate, but up from an initial read of 3.1 percent.
The chain deflator index, the GDP's inflation component, held steady at 3.2 percent, unchanged from the initial read. Economists surveyed by Briefing.com thought it would rise to 3.3 percent.
Stocks had fallen Wednesday, with investors backing off amid higher oil prices and some exhaustion after a more than week-long rally that had boosted the major indexes in excess of three percent.
In corporate news, Toll Brothers (unchanged at $85.73, Research) gained after reporting higher fiscal second-quarter earnings that beat estimates. The luxury homebuilder also forecast that fiscal year earnings would top estimates.
On the downside, shares of Novell (down $0.40 to $5.88, Research) fell after the software maker reported second quarter results late Wednesday of breakeven versus forecasts for a profit of 3 cents per share. Revenue also rose less than expected in the quarter.
U.S. light crude for July delivery eased 5 cents to trade at $50.93 a barrel in electronic trading.
Treasury prices inched lower, raising the yield on the benchmark 10-year note to 4.09 percent from 4.08 percent late Wednesday. Treasury prices and yields move in opposite directions.
In currency trading, the dollar gained versus the euro and yen.
COMEX gold fell 70 cents to $418.20 an ounce.
In global trade, Asian-Pacific markets ended mixed and European shares rose at midday.