U.S. stocks rallied as stronger-than-forecast earnings from companies including Amazon.com Inc and Expedia Inc. partially offset disappointing American growth data.
S&P 500 Index added 0.24 percent to finish at 1,403.38. The Dow Jones Industrial Average gained 0.18 percent to end at 13,228.31. The Nasdaq Composite Index closed at 3,069.20, up 0.61 percent.
U.S. gross domestic product expanded at a 2.2 percent annual rate for the first quarter, a report from Commerce Department showed. Economists expected growth of 2.5 percent versus 3.0 percent in the fourth quarter. Another report showed that consumer sentiment index for April came in at 76.4, above expectations of 75.8.
On the European news front, S&P downgraded Spain's credit rating, for the second time in 2012, by two notches to "BBB+" from "A", citing significant risks to Spanish economic growth. The rating agency also lowered the short-term sovereign credit rating to "A-2" from "A-1".
Hot Stocks Of The Day: AMZN, EXPE, SBUX, PG, WDC, EXPE, MDRX, DECK, CVH
In corporate news, Amazon.com Inc. (Nasdaq:AMZN) soared 15.7 percent after the online retail giant reported solid quarterly earnings, helped by 34 percent jump in revenue. EPS were 28 cents for the first quarter, down 36 percent from 44 cents in the year-ago quarter, yet coming in better than analysts' expectations of 7 cents. Sales soared 34 percent to $13.2 billion, topping market expectations of $12.9 billion.
Expedia Inc. (Nasdaq:EXPE) jumped 23.5 percent after the online travel company's strong quarterly earnings. Adjusted EPS of 26 cents beat expectations of 15 cents for the first quarter.
Starbucks Corp. (Nasdaq:SBUX) lost 5.32 percent after the coffee maker's second-quarter results missed market expectations and the company raised its 2012 earnings view that trailed market expectations.