Wall Street shares edged higher on Tuesday to fresh 2009 highs after recovering from early profit-taking on economic growth and interest rate concerns.

The Dow Jones Industrial Average rose 30.46 points (0.29 percent) to 10437.42 in a choppy session, with the blue chip index closing at its highest level since late September 2008.

The tech-heavy Nasdaq composite added 5.93 points (0.27 percent) to 2203.78, closing above the 2200 level for the first time in 14 months.

The Standard & Poor's 500 broad-market index climbed 1.01 points (0.09 percent) to 1110.31, its second straight finish above the psychologically significant 1100 level.

Investors locked in profits in early trading after data showed smaller-than-expected increases in industrial production and capacity utilization, and key retail companies provided a cautious outlook despite better earnings.

On the economic front, the Labor Department said US producer prices rose 0.3 percent in October, highlighting tame inflation at the wholesale level.

Interest rate concerns also dogged the market after a central bank official suggested that it was "far from clear" whether the Federal Reserve should use rates to stem a surge in financial leverage, urging more research into the issue.

Federal Reserve Bank of San Francisco President Janet Yellen said "higher rates than called for based on purely macroeconomic conditions may help forestall a potentially damaging buildup of leverage and an asset-price boom."

"However, the bulls eventually won the battle in afternoon trading, with help from the commodities pits," said analyst Andrea Kramer of Schaeffer's Investment Research as both crude and gold futures pared early losses to finish in the black, defying the greenback's rebound off 15-month lows.

Some analysts said sentiment turned positive partly due to the embattled US dollar's rise.

The upturn initially came "in the face of a stronger dollar," said analysts at Briefing.com in a note to clients.

Oil company ExxonMobil rose 0.81 percent to 75.03 dollars while rival Chevron added 0.25 percent to 78.81 dollars as oil prices reversed course and closed higher in late trading.

Both Home Depot, the largest US home-improvement retailer, and key retailer Target ended lower after providing cautious outlooks despite better-than-expected earnings.

Target fell 3.02 percent to 48.77 dollars while Home Depot shed 2.39 percent to 26.99 dollars.

Investment firm Lazard gained 2.57 percent to 40.67 dollars after naming Kenneth Jacobs, head of its North America operations, as new chairman and chief executive. He succeeds Bruce Wasserstein, who died in October.

The bond market also rose. The yield on the 10-year US Treasury bond fell to 3.319 percent from 3.331 percent on Monday and that on the 30-year bond dipped to 4.250 percent from 4.258 percent. Bond yields and prices move in opposite directions.