By Annelena Lobb (The Wall Street Journal)

A sharp decline in oil prices and signs that the economy is so far sidestepping a recession lifted stocks Thursday.

Markets have been weighed down recently by concern that rising energy prices would drag on the economy at a time when consumers are also struggling with declining home values and tepid labor markets. But the Commerce Department reported that gross domestic product grew at a seasonally adjusted 0.9% annual rate in the first quarter, up from an earlier reading that showed 0.6% growth.

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Commodities-linked stocks flailed, noted Bruce Zaro, chief technical strategist at Delta Global Advisors. “It's been among the strongest sectors in the market, but its leadership paused a bit,” he said. Their lack of participation may have thinned the rally out toward the close, he said. Exxon Mobil dropped 1.2% and Chevron fell 1.6%. Both are components of the Dow industrials.

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* This is an excerpt from an article that ran on May 29, 2008 in the "Today's Market" section of The Wall Street Journal. Click here for the full article: The Wall Street Journal.