Additionally, total housing inventory levels rose 2.4 percent to 2.91 million existing homes available for sale at the end of January, representing a 5.3 month supply at the current sales pace.

Consumer confidence fell much more than expected in the month of February, according to a report from the Conference Board, with consumer expressing concerns about the outlook for the economy.

The Conference Board said that its consumer confidence index fell to 101.7 in February from a revised 106.8 in January. Economists had expected a more modest decline to a reading of 104.0 compared to the 106.3 originally reported for January.

The decrease by the index came as a modest increase by the present situation index was more than offset by a notable decline by the expectations index.

The report showed that the present situation index rose to 129.3 in February from 128.8 January, reaching its highest level since the month before the September 11th terrorist attacks. The reading suggests that the start of 2006 will be better than the end of 2005

At the same time, the report showed that the expectations index, a reading of consumers'' outlook for the next six months, fell to 83.3 from 92.1 last month. With the decrease, the index fell to its lowest level in three years, excluding the two months following Hurricane Katrina.

Tuesday morning, the Department of Commerce released its revised report on fourth quarter GDP growth, showing that the annual rate of growth in the quarter was upwardly revised in line with economist estimates.

The report showed that fourth quarter GDP growth was revised up to 1.6 percent compared to the 1.1 percent growth previously reported. While the growth met expectations, it was still well below the 4.1 percent rate of growth seen in the third quarter.

The Commerce Dept. said that the upward revision to fourth quarter GDP growth reflected upward revisions to readings on exports, federal government spending, equipment and software spending, and to changes in private inventories.

The slowdown in GDP growth in the fourth quarter compared to the third quarter was primarily due to a slowdown in consumer spending, an acceleration in imports, a downturn in federal government spending, and a slowdown in spending on equipment and software.

The report also showed a downward revision to the pace of core inflation, as the increase in the index of consumer prices excluding food and prices was revised down to 2.1 percent from the 2.2 percent growth previously reported. The growth is still above the 1.4 percent increase seen in the third quarter.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks closed mixed, reflecting lower oil prices, disappointing U.S. economic data, worries about further downgrades, and overcapacity in the tech sector. The Nikkei spent most of the session in the red, but eventually recovered on demand from overseas investors and new domestic investment funds to edge up 0.1%. Indian shares hit an all-time high of 0.9%. South Korea’s Kospi lost 0.2%, dragged by automotive and steel stocks. Hong Kong’s Hang Seng fell 0.2% on profit taking.

European stocks closed deeply in the red, hurt by mixed U.S. economic data and a sharp drop of Google’s shares on negative comments. Strong cash-return programs from Royal Bank of Scotland and AXA failed to provide a boost to market sentiment. The German DAX 30 slid 2%, the French CAC 40 dropped 1.6%, and London’s FTSE 100 tumbled 1.4%.

OIL, METALS, CURRENCIES

Crude oil prices hovered over $61 on expectations of another rise in U.S. oil inventories. Light sweet crude April delivery gained 25 cents to $61.25 a barrel. London Brent for April delivery added 48 cents to $61.47 a barrel.

European gold prices advanced Tuesday. In London gold traded at the fixed price of $559.30 bid per troy ounce, up from $553. In Zurich the precious metal traded at $558.40, up from $552.90. In Hong Kong gold slipped $1.20 to $555.30. Silver opened at $9.75, up from $9.59.

The U.S. dollar was weak against other major currencies. The euro traded at $1.1924, up from $1.1855. The dollar bought 115.89, down from 116.12. The British pound stood at $1.7513, up from $1.7400.

EARNINGS NEWS

Overseas Shipholding Group, (OSG: chart), provider of energy transportation services, reported Q4 earnings of $2.88 a share, down from a profit of $5.35 a share a year-ago. If not for gains on vessel sales and securities transactions, the company earned $2.79 a share in Q4, still missing analyst estimate of $3.63 a share. In addition, the company announced it plans to increase the quarterly dividend by 43% to 25 cents a share, effective with its next payout.