Investors saw the Commerce Department report, which said the nation's GDP grew 3.3 percent from April to June, as fairly good news, with a few caveats. While the GDP figure was revised upward from a previous estimate of 2.8 percent, it still marked the slowest period of economic growth since the first quarter of 2003.

Consumer spending, however, grew at an annual rate of just

1.6 percent in the second quarter, the lowest level in three years. Economists fear uncomfortably high crude prices, which topped $50 per barrel yesterday, could further hamper consumer spending.

"The economy seems to be on a decent growth path, but it's being held back by high energy prices, and that's likely to keep the stock market in this trading range that we've been in over the past eight or nine months now," said Ken Tower, chief market strategist for Schwab's CyberTrader. "For an upside breakout, we'll need a steady decline in oil prices. For a downside breakout, any number of things are possible, including an actual oil shortage, which we thankfully don't have right now."

According to preliminary results, the Dow Jones industrial average finished up 58.84, or 0.6 percent, at 10,136.24, adding to an 88-point gain yesterday.

The Standard & Poor's 500 index rose 4.74, or 0.4 percent, to 1,114.80.

The Nasdaq surged 24.07, or 1.3 percent, to 1,893.94, partly on enthusiasm over the potential acquisition of travel site Orbitz Inc. Buying in the chip sector, oversold after weeks of downgrades and third-quarter warnings, also buoyed tech shares. The Philadelphia Semiconductor index was up 1.9 percent.

Inflation rose slightly in the latest GDP report, coming in at an annual rate of 3.2 percent, up from 2.7 percent in the first quarter of the year. As with consumer spending, Wall Street remains concerned that high oil prices could spark inflation if businesses are forced to pass their energy costs on to their customers.

Rough weather and unrest in the world's oil-producing regions sent crude climbing in recent weeks, but prices declined today after a Nigerian militia leader agreed to a tentative

deal with the country's president to end the fighting over its southern oil fields. Light, sweet crude for November delivery settled down 39 cents at $49.51 on the New York Mercantile Exchange.

Advancing issues outnumbered decliners by about 5 to 4 on the New York Stock Exchange.

The Russell 2000 index of smaller companies closed up 5.41, or 1 percent, at 571.07.