Stocks Opened Higher after GDP Data

U.S. stocks opened higher on Friday, as investors shrugged off a sharp cut in the estimate of fourth-quarter U.S. economic growth that nonetheless matched expectations.The Dow Jones Industrial Average lately gained 35.48 points, or 0.22%, to 16,308.13. The S&P 500 was up 4.99 points, or 0.27%, at 1,859.28. The Nasdaq Composite rose 12.80 points, or 0.30%, at 4,331.74.

The U.S. government slashed its estimate for fourth-quarter growth as consumer spending and exports were less robust than initially thought, suggesting some loss of momentum heading into 2014. Gross domestic product expanded at a 2.4 percent annual rate, the Commerce Department said on Friday. That was down sharply from the 3.2 percent pace reported last month and the 4.1 percent logged in the third quarter.

United Continental Holdings Inc. (UAL) said winter storms that forced the cancellation of more than 22,500 flights will erode a benchmark revenue gauge this quarter at the world’s second-largest airline. Revenue for each seat flown a mile will drop by 0.5 percent to 2.5 percent from a year earlier across all of the carrier’s operations, United said yesterday in a U.S. regulatory filing.

Banking giant Citigroup cut its fourth quarter and full year 2013 estimates on Friday, as its profit was hit by fraudulent activity at a Mexico-based subsidary. As a result of the incident, the bank will take an estimated $235 million after-tax, or $360 million pre-tax, charge against last year’s earnings. The impact will lower 2013 net income from $13.9 billion to $13.7 billion.

Mt. Gox, once the world’s biggest bitcoin exchange, filed for bankruptcy protection in Japan on Friday, saying it may have lost nearly half a billion dollars worth of the virtual coins due to hacking into its faulty computer system.