Wall Street cuts gains after weak housing data

* Gross domestic product data, the government's final estimate for the third quarter, confirmed that the economy contracted at an annual rate of 0.5 percent as economists had expected. The focus has shifted to the current quarter, which is expected to be much weaker.

* The Dow Jones industrial average added 21.66 points, or 0.25 percent, to 8,541.43. The Standard & Poor's 500 Index rose 3.37 points, or 0.39 percent, to 875.00. The Nasdaq Composite Index was up 7.76 points, or 0.51 percent, at 1,540.11.

(Reporting by Leah Schnurr; Editing by Jonathan Oatis)