The ISM said that its purchasing managers index fell to 59.0 in October from 59.4 in September, with a reading above 50 indicating growth in the sector. Economists had expected the index to fall to 57.0.

The report showed that the new orders index slipped to 61.7 in October from 63.8 in September, while the production index came in at 62.0 in October compared to 63.1 in September.

At the same time, the report showed some improvement in employment in the sector, with the employment index rising to 55.0 in October from 53.1 in September.

The ISM said that the prices index surged up to 84.0 in October from 78.0 in September. The agency noted that 70 percent of supply executives reported paying higher prices in October.

INTERNATIONAL MARKETS NEWS

Asian-Pacific Benchmarks ended mostly higher, awaiting the U.S. Fed Reserve decision on interest rate, expected to be increased by a quarter of a percentage point to 4%. In Japan trading in stocks and convertible bonds was suspended because of a computer glitch, but when trading was resumed at mid-afternoon, the Nikkei jumped 1.9%, reaching a four-year peak. Other regional gainers were South Korea’s Kospi, up 2.7% and Hong Kong’s Hang Seng, up 1.3%. Shanghai closed down.

European markets rebounded from early losses and closed mixed, supported by Swiss banking giant USB and British media group Pearson. The German DAX 30 declined 0.1% on news that another election will be held next March, while the French CAC 40 gained 0.1%, and London’s FTSE 100 climbed 0.5 %.

ENERGY, METALS, CURRENCIES

Crude oil futures further declined below $60 a barrel on broad-based selling of oil stocks, caused by warmer weather forecasts. U.S. light sweet crude December delivery fell 15 cents to $59.61 on the Nymex. Heating oil slipped to $1.8180 a gallon, while gasoline slightly rose to $1.5950. London Brent lost 14 cents to $57.86 on London’s ICE Futures Exchange.

Gold futures declined in Europe. In London gold closed at $459.60 bid per troy ounce, down from $465.40. In Zurich the precious metal traded at $459.40, down from $465.60. In Hong Kong gold prices fell $6.30 to close at $465.95. Silver closed at $7.82, up from $7.63.

The U.S. dollar kept trading in a mixed session against major currencies ahead of U.S. Fed Reserve decision on interest rate increases. The dollar rose to a two-year high against the yen, trading at 116.66, up from 116.35. The euro was quoted at $1.1992, up from $1.1984. The British pound stood at $1.7616, down from $1.7985.

EARNINGS NEWS

Colgate-Palmolive Co (CL: chart), maker of consumer products, reported a Q3 profit of 67 cents per share, up from 58 cents a share in the year-ago period on stronger sales and the benefits of a restructuring program, in line with analyst expectations of 67 cents per share.

Viacom Inc. (VIA: chart), media conglomerate, posted a Q3 net income of 45 cents per share, up from a loss of 28 cents per share in the same period last year on 10% revenue growth. If not for special items, the profit of 47 cents per share tops analysts'' forecasts of 45 cents per share.

Entergy Corp (ETR: chart), electric power production company, reported Q3 net income of $1.65 a share, up vs. $1.22 a share in the year period on revenue growth and especially on higher usage of air-conditioning linked to unusually warm weather, beating analysts'' estimate of $1.58 a share. The company added that it continues to target annual earnings growth in the 5% to 6% range but that it is unable to affirm its 2005 outlook due to the impact of recent hurricanes.

Procter & Gamble (PG: chart), consumer goods retailer, reported Q3 earnings of 77 cents a share, up from 70 cents a share a year-earlier, beating analyst estimate by a penny. Sales rose 8% in Q3. The year-ago results include a gain of 3 cents a share from a unit sale. P&G envisages earnings of 66 to 69 cents a share in the December quarter, including Gillette''s operations, with sales growth of 23% to 26%.

CMS Energy (CMS: chart), energy services company, posted Q3 loss of $1.21 a share, down from a quarterly profit of 34 cents a share in the year-earlier period despite revenue growth. After breaking out a charge of $385 million for higher natural gas costs at its Midland Cogeneration plant, CMS stated earnings totaled 54 cents a share, up 11 cents a share in the year-ago period, beating on that basis analyst estimate of of 16 cents a share.

TRW Automotive Holdings Corp.(TRW: chart), automotive systems supplier, reported quarterly earnings or 10 cents a share, down from 13 cents a share in the year-earlier period despite 6.5% revenue growth, topping analysts’ forecasts of 2 cents a share. Debt rose from the previous quarter on the impact of seasonal factors. The company predicts Q4 earnings of 23-38 cents a share.

Marsh & McLennan Cos. (MMC: chart), insurance broker, announced that Q3 net income advanced to 12 cents a share, up from 4 cents a share in the same period last year. Excluding special items, earnings per share in Q3 amounted to 35 cents a share, down from 42 cents a share a year ago, missing analyst expectations of 38 cents per share.

Rowan Cos. (RDC: chart), an offshore driller, reported an almost eight-fold rise in Q3 net income to 67 cents a share, up against 9 cents a share in the year-ago period on revenue growth, beating analyst expectations of 42 cents a share. Q3 included gains on asset sales and a hurricane-related damage loss, which combined to contribute 18 cents a share. The company announced that its 97% of its offshore rigs were operational in Q3, unchanged from a year ago, and its average daily rates per rig in the Gulf of Mexico advanced 60% from Q3 last year.