US open: Stocks rise as investors shrug off GDP; Intel surges

US stocks rose on Friday, with strong results from Intel helping to underpin the mood following the release of disappointing fourth-quarter growth figures, as the dollar came off lows.

At 1610 GMT, the Dow Jones Industrial Average was up 0.2% to 26,071.72, the S&P 500 was 0.5% higher at 2,853.62 and the Nasdaq was up 0.6% to 7,458.84.

Preliminary data out earlier from the Commerce Department showed the US economy grew more slowly than expected in the final quarter of last year. Gross domestic product rose at an annualised rate of 2.6% in the fourth quarter of 2017 following 3.2% growth in the previous quarter and 3.1% in the second quarter, missing expectations of 3% growth.

Compared with a year earlier, GDP grew 2.5% in the final three months of last year, marking the strongest calendar year for economic growth since 2014.

Personal consumption expenditures rose at an annual rate of 3.8% in the fourth quarter compared to 2.2% growth in the third, with spending on goods the highest in more than a decade.

But investors were happy to shrug off the news, focusing instead on a stellar performance from Intel, which surged nearly 10% after better-than-expected quarterly earnings on Thursday

Elsewhere, Rockwell Collins nudged up after its first-quarter earnings and sales exceeded estimates.

Honeywell rose after lifting its 2018 earnings outlook, while Nike edged up following a report that William Ackman’s Pershing Square Capital Management has taken a stake in the group.

Colgate-Palmolive weakened, however, as its fourth-quarter organic sales fell short of expectations and Starbucks fell after its same-store sales released late on Thursday missed expectations.

Market participants were also digesting President Trump’s speech at the World Economic Forum in Davos, during which he said the US will no longer turn a blind eye to unfair trade practices.

Trump pledged to always put the US first but said this does not mean America alone.

"I'm here to deliver a simple message - there has never been a better time to hire, to build, to invest and to grow in the United States. America is open for business and we are competitive once again."

In currency markets, the dollar was still under the cosh but paring some of its earlier losses against the pound and the euro as it found some support from Trump’s remarks, after he said that ultimately he wants the currency to be strong.

IG analyst Chris Beauchamp said: “Mr Trump seems almost neutral on the currency, but at least he didn’t talk it down even more. With non-farm payrolls and a Fed meeting next week, the time could be ripe for a dollar rebound in the near-term, but don’t write off the bear market in the greenback just yet .”