Wall St opens higher despite house price fall US stocks opened higher, picking up momentum from Europe, where markets rode higher on enthusiasm for a eurozone fiscal discipline pact brokered by Germany. The S&P 500 opened up 0.6 per cent to 1,320.55, putting the index back into bull market territory. But technicians were more enthusiastic about a so-called "golden cross": the S&P 500"s 50-day moving average has broken above its 200 day moving average - historically an indication that a rally has momentum and more gains may be in store. The benchmark US index is now up 5 per cent for the year and set for its best January since 1997 as the last trading day of the month gets under way. Investor sentiment was bullish despite another fall in house prices. Homebuilders were little effected with PulteGroup actually inching up 0.3 per cent to $7.65, while Lennar was off just 0.4 per cent to $22.05 and DR Horton was flat at $14.08. Some analysts have consistently pointed out that an upside to weak housing data may be continued Fed stimulus. "Recent housing data has once again disappointed to the downside," said Gina Martin Adams, a senior analyst at Wells Fargo Securities. This may be a key reason for the reiterated dovish stance at the FOMC, as members have made their concern for the housing market clear. Earnings were responsible for most of the big movers. Avery Dennison slumped 9.1 per cent to $26.08, as the office supplies manufacturer reported fourth-quarter profit around a fifth below analyst expectations. Eli Lilly climbed 1 per cent to $39.64 despite seeing fourth-quarter profit slump by a quarter, as sales of its Zyprexa antipsychotic drug were hit by new generic competition. The company also said clinical trials of its experimental Alzheimer's treatment are not yet complete. US Steel climbed 5.5 per cent to $30.32, more than rebounding from Monday's sell-off on the company's lossmaking sale of its Serbian unit to the Serbian government. Although US Steel declared a fourth-quarter loss, it was smaller than in 2010, and the company forecast "significantly improved" results for the current quarter on firmer steel prices. The Dow Jones Industrial Average was up 0.5 per cent to 12,716.77, with Bank of America climbing 1.6 per cent to $7.18 for the best performance in the blue chip-heavy index. The Nasdaq Composite index was up 0.6 per cent to 2.828.85. Shares in RadioShack plunged 28.3 per cent to $7.34, as the company suspended share repurchases and warned fourth-quarter earnings will come in below expectations. Heavy discounting over the holiday sales period took its toll on margins at the electronics retailer. "RadioShack is seeing a somewhat dramatic shift to a structurally lower gross margin and we are unclear where this shift will bottom out," David Strasser, at Janney Montgomery Scott, told clients.