US stocks settled higher Thursday as an encouraging economic growth report eased investors' fears of a business slowdown.

On Thursday, the Commerce Department reported that US economy grew at 3.5 percent in the first quarter, up from a 3.1 percent estimate last month. Solid economic growth data encouraged the investors, and some analysts said the report could keep the market from suffering another slump, as it did in April when the Dow fell through 10,000 points.

The Dow Jones industrial average rose 79.80 points, or 0.76 percent, to 10,537.60 points. The Nasdaq composite index climbed 21.12 points, or 1.03 percent, to 2,071.24 points. The Standard & Poor's 500 index added 7.61 points, or 0.64 percent, to 1,197.62 points.

In company news, General Motors Corp. added 46 cents to 31.95 dollars after a media report said the automaker would spin off or sell its residential mortgage business.

Costco Wholesale Corp. rose 7 cents to 45.49 dollars after posting a 6 percent rise in quarterly profits, and Toll Brothers, a luxury home builder, surged 5.92 dollars to 91.65 dollars after reporting a sharp increase in second quarter earnings.

Boeing Co. rose 1.54 dollars to 62.99 dollars after Indonesian airline Lion Air said it would buy 60 737 jets from Boeing in a deal worth up 3.9 billion dollars.

On the NYSE, advancing stocks outnumbered decliners about 9 to 4, and the trading volume was 1.29 billion shares.

In late New York trading, the dollar moved higher against major currencies. The euro fell to 1.2514 dollars from 1.2606, and the British pound shed to 1.8205 dollars from 1.8322 late Wednesday. The dollar was buying 107.94 yen, up from 107.69, 1.2362 Swiss francs, up from 1.2263, and 1.2674 Canadian dollars, up from 1. 2632.

Source: Xinhua