Wall St. poised to open higher after strong GDP report

NEW YORK (Reuters) - U.S. stocks were poised for a higher open on Tuesday, putting the Dow and S&P 500 on track to extend a four-day rally after an unexpectedly strong report on economic growth.

The final estimate of the U.S. gross domestic product for the third quarter was revised up to a 5 percent annual pace, its quickest in 11 years, from the 3.9 percent reported last month on a stronger consumer and business spending, the government said.

The report easily topped expectations calling for a 4.3 percent pace. [ID:nLNNNNEA58]

"That is a solid number, that is really what you want to see, you want to see it in demand," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

"That is a huge plus, a five handle on GDP is astounding to me, but I?m not going to turn it away - Merry Christmas."

However, durable goods orders unexpectedly fell 0.7 percent in November, well short of expectations calling for an increase of 2.9 percent. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, was unchanged after a downwardly revised 1.9 percent drop in October.

Major Wall Street indexes have risen for four straight sessions, pushing the benchmark S&P index <.SPX> to its 50th record high of the year. The S&P has risen 5.4 percent over that period, its best 4-day run since July 2010. The rally comes on the heels of a selloff, sparked by a slump in oil prices that saw the index drop nearly 5 percent from its prior record high set on Dec. 5.

S&P 500 e-mini futures were up 9.25 points and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a higher open. Dow Jones industrial average e-mini futures <1YMc1> rose 75 points and Nasdaq 100 e-mini futures added 14.5 points.

The Thomson Reuters/University of Michigan's final December reading on consumer sentiment is scheduled for release at 9:55 a.m. New home sales data for November as well as the November reading for personal income and spending are expected at 10 a.m..

Trading volume is expected to be light this week due to the Christmas holiday, which could increase volatility. U.S. equity markets will open for an abbreviated session Wednesday and be closed on Thursday.

Walgreen Co advanced 2.3 percent to $76 in premarket after the drugstore chain operator reported a better-than-expected quarterly profit.

China Finance Online Co Ltd jumped 21.2 percent to $6.45 before the opening bell after the web-based financial services company posted quarterly results.

(Editing by Chizu Nomiyama, Jeffrey Benkoe and W Simon)

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