U.S. MARKET AVERAGES

Stocks were mixed today as investors got nervous on renewed fears of interest rate hikes. Better-than-expected growth in GDP for the third quarter provided initial boost to the market averages but then they lost momentum and have since kept near the flat line, posting only slight gains.

The Commerce Department said the U.S. economy expanded at a 4.3% rate in the July-September period, faster than the 3.8% previously reported by the government and higher than economists'' forecasts of 4.1%. Inflation components in the GDP report, such as the GDP deflator and the personal expenditure index, remained within expectations.

The government's weekly petroleum inventory report showed a sharp drop in oil inventories which sent oil prices up and energy stocks higher with the oil service sector now showing a gain of 1.6%.

The technology sector was among the best performers in the early going. Internet stocks erased some early losses, with Yahoo! (YHOO) now showing a modest advance, despite receiving its second analyst downgrade of the week. The disk drive and semiconductor sectors were also conspicuous advancers. Hutchinson Technology (HTCH) is sending the disk drive sector higher, climbing by nearly 4%.

Dress Barn (DBRN) reached a new 52-week high on quarterly earnings increase and raised guidance. The stock is climbing 20%. Business Objects (BOBJ) jumped to a fresh peak as well with the stock''s advance of 5%, reversing a recent slide.

Taro Pharmaceutical Industries (TARO) ticked below a recent trading range to set a new 52-week low. Discovery Partners International (DPII) dropped to a new low on news that the company''s collaboration talks with Pfizer (PFE) ended.

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 35 cents to $56.85 a barrel on the Nymex. Heating oil slightly fell to $1.6050 a gallon, while gasoline gained 2 cents to $1.4130. 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.