Stocks rose for a third day on Thursday on relief that a ratings cut by S&P in General Electric was just one notch and no further cuts loomed, while data showed some stabilization in consumer spending.

The Dow Jones industrial average <.DJI> gained 191.39 points, or 2.76 percent, at 7,121.79. The Standard & Poor's 500 Index <.SPX> jumped 22.62 points, or 3.14 percent, at 743.98. The Nasdaq Composite Index <.IXIC> added 39.22 points, or 2.86 percent, at 1,410.86.

(Reporting by Deepa Seetharaman; Editing by James Dalgleish)