The Department of Energy''s Energy Information Administration revealed that crude oil inventories rose by 1.3 million barrels for the week ended December 16, climbing to 322.5 million barrels from the prior week''s level of 321.2 million barrels. This followed an advance of 900,000 barrels in the previous week. Oil inventories were 12.4% higher than their levels of the same time last year.

Gasoline inventories also posted a week-over-week decline of 300,000 barrels, the government said, compared to the previous week''s 1.8-million-barrel advance. Gasoline stocks were 4.8% below their levels of last year. Inventories of distillate fuel oil fell by 2.8 million barrels in the most recent week.

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 closed higher, lifted by strong energy and metals stocks, corporate news from Philips Electronics, and strong U.S. markets start. The German DAX 30 rose 0.5%, the French CAC 40 gained 0.7%, and London’s FTSE 100 gained 0.6%.

OIL, METALS, CURRENCIES

Crude oil prices hovered over $58 a barrel on petroleum report, which showed an increase in oil inventories but decline in distillate fuels. Light sweet crude for January delivery gained 6 cents to $58.15 a barrel on the Nymex. Heating oil traded at $1.5110. Gasoline traded at $1.7258. Natural gas rose 21 cents to $13.870 per 1,000 cubic feet.

Gold prices declined in European trading. In London gold closed at $493.60, down from $502.10 per troy ounce. In Zurich the precious metal fell to $492.10 from $507.35. In Hong Kong gold fell $12 to close at $493.95. Silver closed at $8.29, down from $8.51.

The U.S. dollar advanced against its major counterparts in European trading. The euro was quoted at $1.1817, down from $1.1863. The dollar bought 117.42 yen, down from 117.06. The British pound traded at $1.7412, down from $1.7541.

EARNINGS NEWS

Actuant Corp. (ATU: chart), diversified industrial company, posted Q1 net profit of 70 cents a share, up from 62 cents a share in the year-earlier period, topping analyst expectations of 66 cents a share. Sales climbed 42%, boosted by acquisitions. On a same-business basis, sales were flat after falling 5% the year earlier.

ATI Technologies (ATYT: chart), maker of graphics card, reported an 88% decline in profit. Adjusted earnings per share of 10 cents fell from 28 cents a year ago despite revenue growth to beat analyst forecasts for earnings of 4 cents a share.

Palm Inc. (PALM: chart), maker of handheld devices, reported its fiscal Q2 net profit soared to $5.02 a share, up from 48 cents a share in the year-earlier period as it booked a tax-related gain and revenue climbed 18%. The results topped analysts'' estimates and the company issued an upbeat outlook for the current quarter. If not for the tax benefit and other items, earnings would have been 47 cents a share, down from 53 cents a share. Analysts expected the company to post a profit before items of 43 cents a share.

Nike Inc. (NKE: chart), athletic footwear and apparel company, reported that Q2 profit advanced 15% to $1.14 a share, up from 97 cents in the year-ago period. Earnings beat analysts'' estimate by 11 cents a share. Revenue rose 10% from the comparable period. Strong sales and higher margins at its Nike brand businesses in the U.S. and the Americas drove the better-than-expected earnings.

Jabil Circuit Inc. (JBL: chart), electronic systems company, reported a Q1 profit of 37 cents a share, up from 27 cents a share in the year-ago period on revenue growth. The company posted core earnings of 44 cents share, beating the analysts’ estimates for 42 cents a share.