U.S. MARKET AVERAGES

Oil report, Amazon and Boeing led lower opening but market quickly reversed the direction. Recently the three main averages have been posting modest gains only.

Shares of Dow component Boeing fell 3% after the company reported a surge in profit, but, excluding one-time items, its earnings per share fell below analysts' forecasts. The company also reported a revenue decline. Amazon's shares fell after the online retailer reported quarterly profit soared, but earnings per share also came in below Wall Street estimates.

A government report showed that distillate stocks fell by 1.6 million barrels last week, but crude stockpiles jumped by 4.4 million barrels compared with a forecast for a rise of 1.9 million barrels. Oil prices have only risen slightly, but energy stocks have been steadily rising since the oil report release. The oil space stands out as a leader, climbing 2.8%.

Home builders sold off after the 10-year bond approached 4.57% yield driving home builder stocks lower. Hovnanian declines about 1%, Lennar is down 2.1%.

The HMO sector is currently down about 1.1%. The gold sector has erased early gains and is now moving to the downside.

Despite disappointing guidance, shares of DuPont (DD: chart) were sent higher on news of earnings and a $5 billion stock buyback plan. The best performing Dow component is extending its advance, climbing 2.7%. T Rowe Price Group (TROW: chart) is posting a gain of 1.2% on 41% profit growth. Another gainer is Air Products & Chemicals (APD: chart), currently up 2.5%. Caterpillar (CAT: chart), has reversed from last-week’s decline, posting a gain of 1.7%. Alcoa (AA: chart) and JP Morgan (JPM: chart) are showing gains of 1.8% and 1.2%, respectively.

MOVERS AND SHAKERS

Dow component Boeing (BA: chart) reported higher third-quarter earnings, but its sales decreased 4% following a strike. The company posted third-quarter net income of $1.01 billion, or $1.26 a share, compared with $456 million, or 56 cents, for the same period a year ago. Boeing’s shares fell 1.5%.

Car maker DaimlerChrysler (DCX: chart) beat its rivals General Motors (GM: chart) and Ford Motor (F: chart) with its third-quarter results. The company’s stock gained 0.7%.

Amazon’s (AMZN: chart) quarterly earnings decreased 44% and its fourth-quarter sales estimates were below Wall Street expectations. The company’s stock dropped 11%.

Citigroup upgraded International Paper (IP: chart) to “buy” from “hold”. The company is expected to gain today.

ECONOMIC NEWS

Crude oil inventories advanced sharply in the latest week, according to government data released Wednesday, adding to a recent streak of gains. Stocks of gasoline climbed as well, though only slightly.

The Department of Energy's Energy Information Administration revealed that crude oil inventories climbed by 4.4 million barrels for the week ended October 21, rising to 316.4 million barrels from the 312.0 million barrels recorded in the previous week. This followed an advance of 5.6 million barrels for the prior week. Oil inventories are 12.3% higher than their levels of the same time last year.

Gasoline inventories posted a week-over-week advance of 200,000 barrels, the government said, adding to the previous week's advance of 2.9 million barrels. Gasoline stocks are now 3.9% below their levels of last year. Inventories of distillate fuel oil fell by 1.6 million barrels in the most recent week.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks ended mixed with the Nikkei rising 0.9% on the back of strong resource-related stocks like JG Corp. and Chyoda Corp. Among the other regional markets, Australia’s All Ordinaries climbed 1.1%, Hong Hong’s Hang Seng closed flat, while South Korea’s Kospi declined 0.2%.

European markets closed higher on resource stocks, upbeat forecast from DaimlerCrysler and Wall Street gains. The German DAX 30 gained 0.6%, the French CAC 40 added 0.4%, and London’s FTSE 100 rose 0.9%.

ENERGY, METALS, CURRENCIES

Crude oil futures rose with heating oil jumping sharply on oil inventory report. Light sweet crude December contract rose 36 cents to $62.80 a barrel on the Nymex. Heating oil climbed 2.5%, or 5 cents to $1.9375 a gallon. Gasoline added 2 cents to $1.6725.