(Close): US shares closed higher on Thursday, despite news that the US economy shrank at an annual pace of 1% in the first three months of the year - twice as much as expected.
But the Commerce Department took the edge off the bad news, saying it had already begun to pick up.
The S&P 500 rose 0.54% to 1,920 points - yet another record high.
The Dow Jones rose 0.39% to 16,699 points, while the technology-laden Nasdaq was up 0.54% at 4,248.
Hillshire Brands closed up nearly 18% on news that Tyson Foods had joined a bidding war for the for the company, two days after poultry producer Pilgrim's Pride made an offer.
Shares in the discount retailer Dollar General fell nearly 3% after analysts downgraded the stock, citing increasing competition.
