10:00 AM New York – U.S. trade deficit in September as demand for auto parts picks up and crude oil prices rise. Monthly deficit surges to the high for the year to $36.5 billion. Walt Disney fourth quarter earnings increased 18%. Abercrombie & Fitch net drops 39%. European markets turn lower.

U.S. stocks opened mixed with tech stocks trading higher. Earnings from Abercrombie & Fitch and Walt Disney lifted stocks select stocks in the entertainment and retail sectors.

U.S. trade deficit surged in September to $36.5 billion and August deficit was revised to $30.8 billion according to the Commerce Department in Washington. Imports increased 5.8% to $168.4 billion and exports gained 2.9% to $132 billion in the month.

The goods deficit decreased to $47.6 billion and service surplus increased to $36.5 billion.

Crude oil declined 1% to $76.16 and gold edged lower but traded above $1,106 an ounce.

European markets after edging higher turned lower as the markets approached the final hour of trading.

Earnings Review

Abercrombie & Fitch Co., the clothing retailer reported third quarter sales fell 14.6% to $765.4 million from $896.3 million a year ago. Net income in the quarter fell 39.3% to $38.8 million or 44 cents per diluted share compared to net income of $63.9 million or 72 cents per share a year ago.

J. C. Penney Company, Inc, the department-store operator reported third quarter sales fell 3.2% to $4.18 billion from $4.32 billion a year ago. Net income in the quarter fell 78.2% to $27 million or 11 cents per diluted share compared to net income of $124 million or 56 cents per share a year ago. Comparable same-store sales decreased 4.6%.

Blockbuster Inc, a provider of media entertainment said third quarter revenues fell 21.5% to $910.5 million from $1.16 billion a year ago. Net loss in the quarter was $116.8 million or 60 cents per diluted share compared to net loss of $20.6 million or 11 cents per share a year ago.

Copa Holdings, S.A., the provider of airline passenger and cargo service said third quarter revenues fell 7.2% to $323.7 million from $348.9 million a year ago. Net income in the quarter rose 87.4% to $43.1 million or 99 cents per diluted share compared to net income of $23.0 million or 53 cents per share a year ago.

Nordstrom, Inc, the department store operator said third quarter revenues rose 4.3% to $1.96 billion from $1.88 billion a year ago. Net income in the quarter rose 17% to $83 million or 38 cents per diluted share compared to net income of $71 million or 33 cents per share a year ago.

Comparable same-store sales decreased 1.2%.

The Walt Disney Company, the entertainment company said fourth quarter revenues rose 4.4% to $9.87 billion from $9.45 billion a year ago. Net income in the quarter rose 18% to $895 million or 47 cents per diluted share compared to net income of $760 million or 40 cents per share a year ago.

Revenues for the fiscal year 2009 fell 4.5% to $36.1 billion from $37.8 billion a year ago. Net income for the year fell 25.3% to $3.31 billion or $1.76 per diluted share compared to net income of $4.43 billion or $2.28 per share a year ago.

Earnings Review

Arnoldo Mondadori Editore SpA, an editorial group said nine months sales fell 19% to €1.11 billion from €1.37 billion a year ago. Net profit for the nine months fell 54% to €27.1 million or €0.11 per diluted share compared to net profit of €58.8 million or €0.25 per share a year ago.

Benetton Group S.p.A, the clothing retailer said third quarter revenues rose 13% to €609 million from €538 million a year ago. Net profit for the quarter rose 46% to €54 million compared to net profit of €37 million a year ago.

Bulgari SpA, the luxury jeweler said third quarter revenues fell 9% to €233.2 million from €256.2 million a year ago. Net profit for the quarter fell 69.6% to €7 million compared to net profit of €23 million a year ago.

Compagnie Financiere Richemont SA, a luxury goods company said first-half revenues fell 14.3% to €2.4 billion from €2.8 billion a year ago. Net profit for the first-half fell 60% to €344 million or €0.62 per diluted share compared to net profit of €862 million or €1.53 per share a year ago.