U.S. MARKET AVERAGES

Better-than-expected read on GDP weekly petroleum report failed to convince traders.

Latest revision on third quarter real gross domestic product from 3.8% to 4.3% indicated that economy is on healthier despite several hurricanes in the gulf coast. The economic strength was reflecting the consumer’s desire to spend and businesses readiness to invest.

Weekly petroleum report indicated that inventories for crude and gasoline declined, but lower than expected, and as a result oil rebounded. Only oil drillers and refiners rebounded with the rising oil prices. Oil at close rose 82 cents.

Dollar was mixed as gold retreated and copper rose to a new high. Yield on 10-year bond rose to 4.49% from 4.48% as traders worried that Fed will not stop raising interest rates.

Recently spun-off Genworth Financial (GNW: chart) was added to the S&P 500 index to replace energy trader and generator Calpine Corp. Stock rose 42 cents at close. Shares of Yahoo (YHOO: chart) were downgraded by UBS on concerns that company key initiatives are still at an early stage and earnings revision may have to wait. A Federal judge invalidated settlement of $450 million between Research in Motion (RIMM: chart), maker of popular BlackBerry wireless device, and NTP Inc holder of several key patents. Research in Motion’s stock fell $3.79 to $61.28 on volume of 16 million shares.


ECONOMIC NEWS

Crude oil inventories dropped sharply in the most recent week, according to government data released Wednesday. Stocks of gasoline edged lower as well.

The Department of Energy''s Energy Information Administration revealed that crude oil inventories fell by 4.2 million barrels for the week ended November 25, falling to 317.6 million barrels from the prior week''s level of 321.8 million barrels. This followed an advance of 400,000 barrels in the previous week. Oil inventories were 10.3% higher than their levels of the same time last year.

Gasoline inventories posted a week-over-week decline of 500,000 barrels, the government said, more than reversing the previous week''s advance of 200,000 barrels. Gasoline stocks were 4.8% below their levels of last year. Inventories of distillate fuel oil rose by 3.4 million barrels in the most recent week.

The U.S. economy grew at a faster than expected pace in the third quarter, according to a report from the Department of Commerce that is likely to generate some optimism about the strength of the economy.

The report showed that GDP rose at an annual rate of 4.3 percent in the third quarter compared to the 3.3 percent growth seen in the second quarter. Economists had been expecting third quarter GDP growth to be revised up to 4.1 percent from an advance reading of 3.8 percent.

The GDP growth was partly due to growth in consumer spending, which rose by 4.2 percent in the third quarter after rising by 3.4 percent in the second quarter. The growth also reflected increased equipment and software spending, federal government spending, and residential fixed investment.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mixed with the Nikkei crossing 15,000 for the first time in 5 years, but eventually finished lower 0.4% as investors locked in recent profits from technology, banking and steel stocks. Across the region, South Korea’s Kospi surged 1.4%, while Australia’s All Ordinaries lost 0.9%, followed by Hong Kong’s Hang Seng, down 0.6%.

European markets finished in the red, dragged by banking and mining stocks with losses cushioned by positive corporate news from Anglo-Dutch steelmaker Corus Group and Danish telecommunications carrier TDC. The German DAX 30 lost 0.1%, the French CAC 40 slipped 0.5%, and London’s FTSE 100 dropped 1.2%.

OIL, METALS, CURRENCIES

Crude oil prices climbed on sharp drop in oil and gasoline inventories in the previous week. Light sweet crude for January delivery rose 82 cents to $57.32 a barrel on the Nymex. Heating oil rose 2.55 cents to $1.6975 a gallon, while gasoline gained 4 cents to $1.4970. Natural gas rose 33 cents to $12.07 per 1,000 cubic feet. London Brent jumped 36 cents to $54.68.

European gold retreated from its decade-high of $500 per ounce and traded mixed. In London the precious metal closed at $494.50 per troy ounce, down from $497.20. In Zurich gold traded at $494.85, up from $494.75. In Hong Kong gold fell $4.25 to close at $493.25. Silver traded unchanged at $8.13. In New York gold dropped $4.50 to $494.60 per ounce and copper reached a new high of $2.0750 up 3.45 cents.