Reuters US STOCKS-Wall St jumps as GDP growth spurs optimism

* GDP turns positive in Q3, fuels recovery hopes

* P&G and Colgate beat profit views, Exxon misses

* Dow up 2.1 pct; S&P 500 up 2.3 pct, Nasdaq up 1.8 pct

* For up-to-the-minute market news, click [STXNEWS/US] (Adds new paragraphs on VIX, volume and advance/decline figures)

By Ellis Mnyandu

NEW YORK, Oct 29 (Reuters) - U.S. stocks logged their best one-day percentage gain in three months on Thursday as investors saw data showing the U.S. economy returned to growth in the third quarter as brightening the outlook for profits.

The government's first estimate of U.S. gross domestic product showed the economy expanded at an annual rate of 3.5 percent in the third quarter, suggesting it was emerging from the worst recession in 70 years. The quarter of growth was the first after more than a year of contraction in GDP. For details, see [ID:nN29354547]

Equity gains were widespread, with big manufacturers, technology, financials, energy and the materials sectors all benefiting. The S&P 500 and the Nasdaq halted a four-day rout.

Sentiment was also boosted by stronger-than-expected quarterly results from consumer product heavyweights Procter & Gamble Co (PG.N) and Colgate-Palmolive Co (CL.N).

The GDP report served as more affirmation of investors' recent bets on the recovery, which fueled a sharp advance from the 12-year lows of early March.

"We see today that the optimism about corporate earnings reports is just being confirmed in the GDP report," said Kenneth Kamen, president of Mercadien Asset Management in Hamilton, New Jersey. "We are starting to see the economy really recover and GDP picking up." more...