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 traded in the negative at mid-day, hurt by utilities like Suez and metals stocks like Rio Tinto. Strong cash-return programs from Royal Bank of Scotland and AXA failed to provide a boost to market sentiment. The German DAX 30 fell 0.4%, the French CAC 40 dropped 0.4%, and London’s FTSE 100 also lost 0.4%.

OIL, METALS, CURRENCIES

Crude oil prices continued to decline on easing supply concerns. Light sweet crude April delivery slipped 38 cents to $60.62 a barrel. London Brent for April delivery declined 20 cents to $60.79 a barrel.

European gold prices recovered from yesterday’s decline. In London gold traded at the fixed price of $556.40 bid per troy ounce, up from $553. In Zurich the precious metal traded at $556.50, up from $552.90. In Hong Kong gold slipped $1.20 to $555.30. Silver opened at $9.60, up from $9.59.

The U.S. dollar was weak against other major currencies. The euro traded at $1.1860, up from $1.1855. The dollar bought 116.07, down from 116.12. The British pound stood at $1.7477, 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.

Astec Industries Inc, (ASTE: chart), road building equipment maker, reported that Q4 net income climbed to $1.02 million, or 5 cents a share, up from $268,000 in the year-ago quarter. Revenue in Q4 jumped 21% to $134.5 million. The company stated that Q4 showed seasonal weakness, but added the work backlog is considerably higher than last year. Astec also made it clear that, during its annual audit, it identified significant internal control deficiencies related to inventory controls and accounting system access controls. Despite the weaknesses, the company remains confident in the reliability of its financial statement.

H.J. Heinz Co (HNZ: chart), maker of sauces, condiments and packaged foods, reported Q3 net income of 35 cents a share,. down from 43 cents in the same period last year. Quarterly sales shot up 5.7% to nearly $2.19 billion, from $2.07 billion, but gross profit dropped to $780.7 million from $784.7 million. Sales grew 9.4% on a constant-currency basis. Earnings from continuing operations, aside from special items, would have been 50 cents.The company missed analysts view for earnings of 56 cents a share.

Innkeepers USA Trust (KPA: chart), real estate investment trust, reported a Q4 breakeven on a per-share basis, up from a loss of 6 cents a share, a year earlier. Funds from operations grew to 21 cents a share from 15 cents a year ago. The company missed analysts’ estimates for earnings of 23 cents a share. Revenue increased to $60.9 million from $50.5 million.

Staples Inc (SPLS: chart), office products retailer, reported Q4 earnings of 39 cents a share, up from a profit of 33 cents a share a year-ago on sales and 3% same-store sales growth in Q4, topping analyst estimate by a penny.