Stocks Opened Higher after GDP Data

U.S. stocks opened higher on Wednesday, as solid data on economic growth was seen as underlining that the economy was growing but not too swiftly to be in danger of overheating. The Dow Jones Industrial Average lately rose 158.45 points, or 0.62%, to 225,568.48. The S&P 500 added 15.81 points, or 0.58%, to 2,760.09. The Nasdaq Composite advanced 44.20 points, or 0.60%, to 7,374.55.

U.S. economic growth was slightly weaker than initially thought during the fourth quarter, and is on track to slow in the beginning of 2018. Gross domestic product, a broad measure of the goods and services produced across the U.S., rose at a 2.5% seasonally and inflation-adjusted annual rate in the fourth quarter, the Commerce Department said Wednesday.

Consumer confidence surged in February, the first month Americans started to benefit from the Trump tax cuts, to the highest level since November 2000. The index rose to 130.8 this month from a revised 124.3 in January, the Conference Board said Tuesday.

Oil futures fell Wednesday, as the effects of a stronger dollar continued to pressure the commodity, while investors braced for supply data due later that’s expected to show a further build in U.S. stockpiles. April West Texas Intermediate crude dropped 10 cents, or 0.2%, to $62.91 a barrel. April Brent crude lost 13 cents, or 0.2%, to trade at $66.50 a barrel.

Lowe’s Companies Inc’s (LOW.N) profit and margins fell well short of Wall Street estimates on Wednesday. Lowe’s net income fell 12.5 percent to $554 million, or 67 cents per share, in the fourth quarter. Lowe’s same store sales also rose – by 4.1 percent in the fourth quarter – but its gross margins fell to 33.73 percent.