NEW YORK - WALL Street opened higher on Tuesday after a report on the gross domestic product met expectations, and as investors awaited two readings on the housing market.
The Commerce Department said third-quarter gross domestic product fell at an annual rate of 0.5 per cent, in line with analysts' expectations and matching the government's estimate of a month ago.
The Department also said corporate profits fell 1.2 per cent in the third quarter, slightly more than the 0.9 per cent estimated last month.
While the readings show further weakness, investors have likely already priced in very low expectations. The concern, however, is that the current quarter will be much worse.
Later Tuesday morning, the Commerce Department will report on last month's new home sales, while the National Association of Realtors will release figures on existing home sales. Economists forecast that both will show declines.
Analysts say investors are looking ahead to 2009 for any signs of improvement in the economy. But such signs have been difficult to find as major corporations release bleak outlooks for next year.
In early trading, the Dow Jones industrial average rose 46.75, or 0.55 per cent, to 8,566.52.
Broader indexes were also higher. The Standard & Poor's 500 index rose 4.58, or 0.53 per cent, to 876.21. The Nasdaq composite index added 6.60, or 0.43 per cent, to 1,538.95. -- AP
