Stocks edge up on tiny uptick in GDP

Major stock indexes edged up to two-year highs Wednesday after a report showed that the U.S. economy grew faster than previously thought over the summer.

The Commerce Department said the country's gross domestic product rose at an annual rate of 2.6 percent between July and September, a small increase from its earlier estimate of 2.5 percent.

"Some folks will look at 2.6 percent as a disappointment, but the market is taking a look at the bigger picture," said Phil Orlando, the chief stock market strategist at Federated Investors. Many traders expect the economy to grow by 3 percent or more during the fourth quarter and through 2011, he said.

The Dow Jones industrial average rose 26.33 points, or 0.23 percent, to close at 11,559.49. The Standard & Poor's 500 index rose 4.24, or 0.34 percent, to 1,258.84. Both indexes closed at their highest levels since July 2008.

The Nasdaq composite index gained 3.87, or 0.15 percent, to 2,671.48. It was the highest close for the Nasdaq since Dec. 28, 2007.

Trading was light ahead of the Christmas trading holiday Friday. Rising stocks outnumbered falling ones by three to two on the New York Stock Exchange. Volume was 784 million shares.

Bank of America Corp. led the 30 stocks that make up the Dow index. It gained 3.1 percent to $13.38.

Before the market opened, Walgreen Co. reported revenue and earnings that beat analyst estimates. The country's largest drugstore chain said its income rose 18.8 percent. The stock rose 5.5 percent to $38.85.- AP