11:30AM Market averages traded mixed. Crude oil rallied. Airlines gained on upgrade.

U.S. market averages traded mixed, as investors showed reluctance to making big moves ahead of the Fed Reserve's decision on interest rates. Strength in the energy sector provided some support. Crude oil prices topped $70 a barrel, sending energy stocks up. The markets also benefited from significant strength among gold, utilities, and steel stocks.

Despite the higher oil prices, airlines advanced after JP Morgan upgraded six airline stocks. Alaska Air (ALK: chart) jumped 5%, American Airlines (AMR: chart) and UAL Corp. (UAUA: chart) rose 3.5% each, while Continental Airlines (CAL: chart) added 2.8%.

Communications equipment stocks advanced after Cisco Systems Inc. (CSCO: chart) got a brokerage upgrade. Other notable gainers included Ciena (CIEN: chart), up 2.7%, Adtran (ADTN: chart), up 2.9% and ADC Telecommunications (ADCT: chart), higher by 2.6%. At the same time, financial shares declined on concerns about the subprime mortgage market and the outlook for buyout activity.

Among individual stocks, Monsanto (MON: chart) gained 1.5% on strong Q3 earnings. Constellation Brands (STZ: chart) rose 4% after posting in line-with-estimate earnings. Capital One Financial (COF: chart) rose 2% after it said it will cut 2,000 jobs. On the side of the losers, Smart Modular (SMOD: chart) dropped 11% after the memory chip maker reported weaker-than-expected Q3 revenues.

The Dow Jones industrial average was down 16.26 points, or 0.12%, at 13,411.47. The Standard & Poor's 500 was down 0.82 points, or 0.05%, at 1,505.52. The Nasdaq Composite Index was up 5.06 points, or 0.19%, at 2,610.41.

GDP revised up 0.7% in Q1.
The Department of Commerce released its final report on first quarter gross domestic product Thursday morning, showing that the pace of GDP growth for the quarter was upwardly revised a little less than economists had been expecting. The report showed that GDP growth for the quarter was revised up to 0.7 percent compared to the previously reported 0.6 percent growth. Economists had been expecting growth to be revised up a little more to 0.8 percent. The Commerce Department noted that the upward revision was primarily due to an upward revision to exports of goods and services. Despite the upward revision, however, the GDP growth in the first quarter still marks the slowest pace of growth in over four years.

The growth for the quarter compares to 2.5 percent growth that was seen in the fourth quarter. The slowdown in the pace of growth compared to the previous quarter reflected an upturn in imports, a deceleration in exports, a downturn in federal government spending, and a deceleration in consumer spending on non-durable goods. The report also showed that the closely watched reading on core consumer prices was revised up to show 2.4 percent growth compared to the previously reported 2.2 percent growth. Core consumer prices rose at a 1.8 percent rate in the previous quarter.


9:45AM Wall Street opened lower on nervousness ahead of Fed’s decision on rates.

Wall Street opened mixed on Thursday ahead of the Fed Reserve''s decision on interest rates. Investors were also digesting a key reading on inflation. Gross domestic product in Q1 was revised to 0.7% from 0.6% previously, while core consumer prices rose at a 2.4% annualized pace in the quarter, revised up from the 2.2% rate previously projected. In another economic report, the Labor Department said that initial jobless claims fell by 13,000 to 313,000 last week.

In corporate news, Bed Bath & Beyond (BBBY: chart) lost 3.2% after the home goods chain cut its full-year profit target, citing uncertain economic trends. semiconductor equipment maker Novellus Systems (NVLS: chart) fell 3.5%after releasing a Q2 profit warning, due to weakness in the chip market.

Among earnings-related movers, Monsanto (MON: chart) added 1.5% after it reported a sharply higher Q3 earnings to $1.03 a share from 60 cents a share a year ago, citing a strong agricultural season. On the deal news front, General Motors (GM: chart) rose 2.2% amid reports that it would sell its Allison Transmission business for $5.6 billion to Carlyle Group and Onex Corp.

In midmorning trading, the Dow Jones industrial average rose 3.41, or 0.03%, to 13,432.36. The Standard & Poor''s 500 index rose 1.57, or 0.10%, to 1,507.91, and the Nasdaq composite index rose 8.67, or 0.33%, to 2,614.02. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 5.09% from 5.08% late Wednesday.


9:30AM The FTSE 100 advances on strong gains by British Land and Liberty International.

The FTSE 100 in London was 39.8 points, or 0.5%, higher at 6,561.5.

Advancers

British Land led the gainers, up 2.4% and another large-cap Liberty International was 2.3% higher. Land Securities also rose 2.1%. Other advancers included Whitbread, the leisure group, which gained 2.6%, while Vodafone surged 2.2% on continued talk of stakebuilding.

Further deal talk also lifted J Sainsbury, up 1% as reports circulate that property owner Robert Tchenguiz had doubled his position in the company to more than 10%