U.S. MARKET AVERAGES

U.S. stock futures pointed to a positive opening of Wednesday session with expectations of a busy trading session. Market sentiment was boosted by merger-and-acquisition activity and overseas gains.

In takeover news, Allergan Inc. agreed to pay more than $3 billion for Inamed Corp., offering a deal that topped Medicis Pharmaceutical Corp.''s first bid.

Seagate Technology offered $1.9 billion in shares for Maxtor Corp., a hard disk making rival, that values each share at a 60% premium to Tuesday''s close.

Arden Realty Inc., a real estate investment trust valued at more than $3.1 billion, is near a deal to be bought by General Electric Co. and other investors.

Elsewhere, power generator Calpine Corp. filed for Chapter 11 bankruptcy protection, an expected move as its debt burden mounted.

Dow Jones futures were recently up 25 points, S&P 500 futures rose 3.10 points, and Nasdaq 100 futures were ahead 6 points.

ECONOMIC NEWS

Wednesday morning, the Department of Commerce released its final report on third quarter gross domestic product, showing that GDP growth was downwardly revised. The downward revision came as a surprise to economists.

The report showed that third quarter GDP rose at an annual rate of 4.1 percent, down from the previous estimate of 4.3 percent, although still above the 3.3 percent growth seen in the second quarter. Economists had expected third quarter GDP growth to be unrevised.

The Commerce Dept. said that the lower than previously reported growth reflected a downward revision to consumer spending for durable goods as well as several other smaller downward revisions that were partly offset by an upward revision to exports of services.

Despite the downward revision, the third quarter GDP growth remained the strongest rate of growth since the first quarter of 2004. The growth reflected strong consumer spending, equipment and software spending, federal government spending, and residential fixed investment.

However, the report also showed that the index of consumer prices excluding food and energy rose 1.4 percent in the third quarter, an upward revision from the previous estimate of 1.2 percent growth. The price growth still remained below the 1.7 percent increase seen in the second quarter.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished largely in the positive, led by the Nikkei which hit a fresh five-year high of 2.02% to 15,957.57, boosted by exporter issues like Honda Motor and other strong sectors, including the real estate sector with Mitsubishi Estates in the lead. Across the region, South Korea’s Kospi rose 1%, Hong Kong’s Hang Seng advanced 0.5%, and Sydney All Ordinaries climbed 0.9%.

European stocks advanced at mid-day trading, lifted by strong energy and metals stocks as well as corporate news from Philips Electronics. Both the German DAX 30 and the French CAC 40 broke through new highs, rising 0.5% and 0.6% respectively. London’s FTSE 100 gained 0.4%.

OIL, METALS, CURRENCIES

Crude oil prices advanced after an attack on a pipeline and ahead of petroleum report, expected to show a decrease in oil inventories. Light sweet crude for January delivery gained 26 cents to $58.35 a barrel on the Nymex. London Brent climbed 26 cents to $50.43.

Gold traded mixed in European trading. In London gold closed at $502.10, down from $506.70 per troy ounce. In Zurich the precious metal rose to $507.30 from $506.95. In Hong Kong gold fell $2.65 to close at $505.95. Silver closed at $8.51, down from $8.55.

The U.S. dollar lost ground against its major counterparts in European trading. The euro was quoted at $1.1870, up from $1.1863. The dollar bought 117.12 yen, down from 117.14. The British pound traded at $1.7567, up from $1.7531.