NEW YORK (CNN/Money) - U.S. stocks opened on an up note Friday, the last day of the month, as investors cheered a stronger-than-expected report on the economy's health in the fourth quarter.

Around 9:35 a.m. ET, the Dow Jones industrial average (up 14.00 to 7898.99, Charts), Nasdaq composite (up 3.25 to 1327.19, Charts) and the S&P 500 index (up 2.12 to 839.40, Charts) all registered modest gains. The Dow and S&P would have to make significant gains Friday to close out the week, and the month, on an up note, while the Nasdaq would have to hold on to the minimal gains it has claimed so far this month.

Before the opening bell, the Commerce Department said its second reading on fourth-quarter GDP showed growth of 1.4 percent, revised up from the originally reported 0.7 percent. Economists surveyed by Briefing.com thought that it would rise to 1 percent.

Investors will have two other economic reports to consider in morning trading.

Just after trading begins, the University of Michigan plans to report its consumer sentiment index reading for February, which Wall Street expects to fall in line with the preliminary reading of 79.2.

The Chicago Purchasing Managers Index is set to be released moments later. Economists expect it fell to 52.5 in February from 56 in January, according to a survey by Briefing.com.

The latest developments in the Iraq situation continued to drum up investors' fears that a war could be edging its way closer, and muted the market's gains.

Iraq said Friday it would destroy missiles deemed illegal under U.N. sanctions beginning Saturday, but that it doesn't know how to get rid of them and needs help.

Meanwhile, the U.N. Security Council has been meeting in a closed session to discuss the U.S.-backed resolution saying Iraq has missed its last chance to disarm. Also, U.N. Chief Weapons Inspector Hans Blix plans to report to the Security Council on the latest findings and conclusions of his inspection team on Saturday.

Oil prices rose slightly again Friday morning after reaching their highest levels since the Gulf War during the trading day Thursday, before ending lower. Brent crude for April delivery gained 3 cents to $32.10 a barrel in London.

Some mixed news from clothing retailer Gap pressured the retail sector in early trading.

After the close of trading Thursday, Gap (GPS: down $1.03 to $13.79, Research, Estimates) posted a fourth-quarter profit of 27 cents per diluted share, reversing a year-ago loss and coming in line with analysts' average expectation, according to First Call. But the company also said that the spring season was off to a slow start, and that was weighing on its stock.

Treasury prices slipped in slightly early trading, putting the 10-year note yield at 3.76. Gold for April delivery rose $1.40 an ounce to $347.60.

European markets traded mostly higher near midday, while most Asian markets ended little changed Friday.

The dollar gained against the yen, but fell versus the euro.