10:00AM New York – U.S. stocks edged higher after the release of earnings from Goldman Sachs and Adobe and housing starts report. ECB pumped $500 billion of liquidity in euro zone.

Dow Jones Industrial Average rebounded at the opening 64.61 to 13,232.97, Nasdaq increased 13.04 to 2,587, and S&P 500 edged higher 7.92 to 1,453.82.

Market averages after thirty minutes of trading edged higher on better than expected earnings from Adobe, Goldman Sachs and weak housing start report.

Building permits for privately owned homes in November declined 1.5% to a seasonally adjusted annual rate of 1,152,000, from the revised October rate of 1,170,000 and is 24.6% below the revised November 2006 estimate of 1,527,000. Single-family authorizations in November were at a rate of 764,000 5.6% below the October level of 809,000.

Privately-owned housing starts in November declined by 3.7% seasonally adjusted annual rate of 1,187,000 from the revised October estimate of 1,232,000 and 24.2% below the revised November 2006 rate of 1,565,000. Single-family housing starts in November were at a rate of 829,000; 5.4% below the October level of 876,000.

Privately-owned housing completions declined 1.4% in November to a seasonally adjusted annual rate of 1,344,000 from the revised October estimate of 1,402,000 and 28.7% below the revised November 2006 rate of 1,885,000. Single-family housing completions in November were at a rate of 1,088,000, 4.1% below the October level of 1,135,000.

Best Buy (BBY: chart) reported third quarter earnings of 53 cents per share or $228 million compared to 31 cents or $150 million a year ago. Revenue in the quarter increased 17% to $9.93 billion. For the year the company raised its guidance to $3.20 from $3.15 per share. Best Buy stock fell 1.5% in the morning trading.

Goldman Sachs (GS: chart) reported earnings rise of 2% on net revenue increase of 14%. Goldman Sachs reported fourth quarter revenue increase of 14% to $10.74 billion and net income increase of 2% to $3.22 billion. Diluted earnings per share in the quarter increased to $7.01 compared to $6.59 a year ago and $6.14 in the third quarter of 2007.

For the fiscal year revenue rose to $45.99 billion and earnings increased to $11.60 billion. Earnings per share increased 26% to $24.73 from $19.69.

Adobe reported fourth quarter revenue increase of 34% to $911.2 million from $682.2 million a year ago and earnings rose 30.3% to $275.8 million from $163.4 million. Diluted earnings per share jumped to 38 cents from 30 cents a year ago.

The European Central Bank offer for 348.6 billion euros ($502 billion) lending to banks at lower than prevailing interest rate between banks received strong demand in the euro zone banks. The central bank is providing additional liquidity for the last two weeks of the year to ease the current credit crunch in the market. The fresh lending managed to lower the interbank rate from a high of 4.9% a week ago to below 4.28%.

The Central Bank received bids from nearly 400 institutions with a total bids worth 377 billion euros. The ECB had pre-announced that it will accept all bids that are received at a rate higher than 4.21% following a similar move in the second week in August of this year to pump 95 billion euro liquidity in the market.


9:00AM New York - Goldman Sachs fourth quarter revenue rose 14% and earnings increased 2% from a year ago.

Goldman Sachs reported fourth quarter revenue increase of 14% to $10.74 billion and net income increase of 2% to $3.22 billion.

Diluted earnings per share in the quarter increased to $7.01 compared to $6.59 a year ago and $6.14 in the third quarter of 2007.

For the fiscal year revenue rose to $45.99 billion and earnings increased to $11.60 billion. Earnings per share increased 26% to $24.73 from $19.69.

Return on average tangible common equity was reported at 38.2% and average common shareholder equity was 32.7% for the year.

In the quarter the company repurchased 4.12 million shares at a total cost of $8.96 billion.

For the year, investment banking net revenue rose 34% to $7.56 billion, fixed income, currency, and commodities (FICC) net revenue rose 13% to $16.17 billion, and equities net revenue increased 33% to $11.3 billion.