U.S. MARKET AVERAGES

The 10-year Treasury declined 7/32, or $2.19 per $1,000 invested, to yield 4.128%. The 30-year bond dropped 16/32 to yield 4.373%. Yields move inversely to prices.

Ameritrade (AMTD: chart) reached to a new 52-week high helped by in-line earnings for 3Q. Among the advancers were also Lowe`s (LOW: chart) which continued its 3-day rally, and Best Buy (BBY: chart).

Open Text (OTEX: chart) has declined sharply on slashed 4Q outlook, reaching a new 52-week low.

General Motors Corp. (GM: chart) dropped 1.6% to $35.24 after Deutsche Bank provoked worries about the stock as the automaker prepares for a confrontation with the United Auto Workers union on healthcare cost issues.

Intel Corp. (INTC: chart) declined 0.2% after the chip maker and several information tech companies manufacturing or selling computers were attacked by the European Commission as part of an investigation into possible anti-trust violations.

Walt Disney Co. (DIS: chart) shed a penny as it was reported it plans to spin off its radio-station network group.

The Home Depot Inc. (HD: chart) climbed 1.3% to $40.81 after broker Jefferies & Co. upgraded the home improvement retailer.

TD Banknorth dropped $0.65 to $29.31 after the New England banking company, said it has agreed to acquire Hudson United Bancorp for $1.9 billion. Hudson United Bancorp’s shares advanced $4.20 to $41.70.

Royal Dutch Shell Group agreed to pay $90 million to settle charges brought by shareholders after the company restated proven oil reserves. The company will pay $90 million to plaintiffs plus up to $1 million to cover out-of-pocket expenses as $25 million will be covered by insurers.

ECONOMIC NEWS

No major economic news is scheduled for release Tuesday.

Economy in Singapore advanced at a faster-than-anticipated speed in the 2Q on strong growth in the services sector and improved manufacturing data. On seasonally adjusted and annualized basis GDP rose 12.3% rebounding from a first-quarter slump and allaying fears of recession.

Lehman Brothers continues to add investment bankers to its staff in Japan led by the ambition to be one of the top 5 merger-and-acquisition advisors in Japan over the next three years. It is trying to assert its presence in sectors such as health care, financial technology and natural resources, areas in which Japanese companies are increasingly looking to boost their global presence.

INTERNATIONAL MARKET NEWS

Markets in Europe declined restrained by losses in oil companies and a stronger dollar, although raised forecasts boosted Alcatel and L’Oreal. Averages in Germany shed 0.2%, in France dipped 0.1%, and in the U.K. dropped 0.3%. Crude-oil was trading below $60 a barrel, last up 67 cents at $59.59. Both the euro and the pound gained ground against the dollar, and quoted at $1.2181 and $1.7697 respectively.

Asian-Pacific markets ended mixed with Japanese and South Korean indexes up helped by technology shares and easing crude-oil prices. Japan’s Nikkei extended gains on optimism for strong corporate earnings and closed 0.2% higher. South Korea’s Kospi added 0.3% on the back of strong offshore buying of technology and bank shares. China’s Shanghai Composite rose 3.4% on a late-session surge in blue chips. Hong Kong’s Heng Sang fell 0.1%. The dollar bought 111.16 yen at 5 p.m, in Tokyo it traded between 111.08 and 111.79 yen.

European markets edged off three-year highs on declines in the oil sector and despite lifted forecasts which gave a boost to Alcatel and L’Oreal and telecom gains which offered some support. German’s DAX 30 fell 0.2% after the statistics office said that the value-added tax will be increased to 18%. The French CAC 40 lost 0.1% and the U.K’s FTSE 100 declined 0.2% on mixed corporate news and the continuing aftermath of the terrorist bombings.

ENERGY, METALS AND CURRENCIES MARKETS

Oil futures jumped more than $1 on fears of a new summer storm. August light crude delivery climbed $1.58 to $60.50 a barrel in morning trading on the NYME. London Brent rose $1.32 to $58.76 a barrel.

Oil prices surpassed $59 a barrel under the threat of a new Atlantic storm after Hurricane Dennis had passed without causing major destruction to oil facilities. U.S. light crude delivery for August went up 31 cents to $59.23 a barrel. London Brent gained 24 cents to $57.68 a barrel.