MARKET AVERAGES

At the close three averages managed to remain close to unchanged but they had come off from the day’s high on the back of oil inventory data released by the U.S. Department of Energy.

In Norway off-shore oil platform strike was averted after a successful negotiations between the labor union and management. Last thirteen calls of strike have been resolved without a strike in Norway.

In the bond markets the 10-year bond climbed as yield fell to 3.98%.

Ford guided the lower earnings for the year 2005 and planned to reduce 5% of its salaried staff. Morgan Stanley reported 2Q earnings declined by 24%.

Ameritrade has agreed to buy TD Waterhouse brokerage unit for $2.9 billion. The stock jumped 20% at the close.

CORPORATE AND EARNINGS NEWS

Ford Motor cut its full-year earnings outlook for the second time blaming sales decrease among its core sport-utility vehicles and climbing gasoline prices and said they would be followed by deeper job and cost cuts. The company sees the 2005 earnings in $1 and $1.25 range.

GTech Holdings, lottery systems operator, reported 1Q higher profit of 43 cents a share vs. 40 cents a year ago beating estimates of 40 cents a share. The results are owing to acquisitions and improved sales. The company projects 2Q earnings in the range of 37 to 40 cents.

Lindsay Manufacturing, irrigation systems maker, announced 3Q net profit of 34 cents per share vs. 36 cents last year. The company’s backlog at May 31 was $11.1 million compared with $20.2 million the prior-year same period.

Morgan Stanley posted 2Q profit declined to 86 cents per share compared with $1.10 per share last year. Net earnings dropped 22% and include legal expenses worth $140 million.

Worthington Industries, metal processing company, reported 4Q earnings rise of 46 cents a share vs. 45 cents a year ago missing analysts’ expectations of 51 cents.

Hennes & Mauritz, fashion retailer, posted higher 2Q profit of 2.35 billion kronor up from 1.76 billion on growing sales.

Shares of Arbinet-The Exchange dropped by 35% as company revised its earnings forecast downwards and withdrew its earnings per share guidance. Market was looking for 66 cents for the year.

According to newspaper report, Warren Buffett, a billionaire investor, announced Berkshire Hathaway is willing to invest more than the $10 billion to $15 billion in the U.S. energy sector as he sees growing opportunities in the utility industry.

The European Commission said it had reached an antitrust agreement with Coca-Cola concerning changes in business practices of the company. The giant soft-drinks company escaped a fine but is bound with the agreement until 2010 and on breaking its terms must pay the equivalent of 10% of world-wide revenue.

OIL AND METALS MARKETS

Crude-oil prices dropped 11 cents to $58.93 a barrel early Wednesday ahead of U.S. inventory data. Analysts expect further decline in crude stocks which are 50% higher than the previous year, they also predict increase in petroleum-products shares.

INTERNATIONAL MARKETS

Most Asian markets closed higher although investors remained cautious with crude-oil prices still moving near recent tops. It traded at $58.9 a barrel. Stocks in Japan advanced on construction and real-estate sectors despite unfavorable trade data. In South Korea averages climbed 1.2%, and in Taiwan were up 1.3%. The dollar was trading at 108.50 yen in early Tokyo trade.