U.S. MARKET AVERAGES

Drop in Oil and Bond yields near three-year high.

Traders sold energy stocks as prices of crude oil, gasoline and natural gas fell. On a third day in a row energy stocks suffered the sell-off followed a decline in oil below $60 per barrel. Consumer discretionary and transportation sector stock, benefiting from the falling price, rose in the session.

With the news on Guidant and Johnson & Johnson $25 billion deal in trouble and heading for the court, market sold stocks of Guidant (GDT: chart) and J&J (JNJ: chart). Guidant declined 4.6% and Johnson & Johnson lost 1.4% in the session’s trading.

Texas Utility (TXU: chart) announced the two for one split and confirmed the earnings guidance for the fiscal 2005.

Bond yields on ten-year bonds are below 4.67% reached on Friday, and closed at 4.63%. However, the trend for the higher yield has not been broken.


MOVERS AND SHAKERS

The software giant Microsoft (MSFT: chart) has appeared to be the main participant in the talks about the possible sale of a stake in America Online, a Time Warner (TWX: chart) unit, according to The New York Times. Microsoft’s stock added 0.2% and Time Warner’s stock was up 0.6%.

Tivo (TIVO: chart) and Yahoo (YHOO: chart) plan to make an agreement that will connect Yahoo''s online service to TiVo''s set-top boxes, according to The New York Times. Tivo’s stock jumped 13% and Yahoo’s stock gained almost 1%.

The search engine Google (GOOG: chart) is modifying some of its internet services for use on wireless devices. Starting today users of more than 100 types of cell phones can access Google''s map database, according to a Wall Street Journal report. The company’s shares were up about 4%.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks fell across the region on consolidation of last-week gains. The Nikkei declined 0.1% but still held above 14,000 on cautious trading. Among the other regional markets, Hong Kong’s Hang Seng was the biggest loser, down 1.5%, followed by Singapore’s Straits Times, falling by 0.6%, and South Korea’s Kospi, down 0.3%. China’s Shanghai Composite slightly advanced on a tentative agreement between China and U.S, while the Indian market rose 1.7%.

European markets closed in the green on deal talk, stronger dollar and falling oil prices. The German DAX 30 added 0.6%, London’s FTSE 100 advanced 0.7%, and the French CAC 40 added only 0.1% as gains were limited by oil major Total and insurance stocks. The euro fell to an 18-month low below $1.18.

OIL, METALS, CURRENCIES

Crude oil prices slid below $59 a barrel on unusually warm weather and easing worries about the winter season heating fuel demand. Light sweet crude December delivery fell to $58.60 a barrel. Heating oil lost 4 cents to $1.755 a gallon. Gasoline fell 7 cents to trade at $1.542. Natural gas dropped 2%, or nearly 24 cents to $11.18 per 1,000 cubic feet.

Gold traded higher in Europe. In London the precious metal closed at $456.85 per troy ounce, up from $456. In Zurich gold rose to $457.65 from $455.85. In Hong Kong gold fell $4 to close at $457.45. Silver closed at $7.46, down from $7.49.

The U.S. dollar strengthened against most of its major counterparts. The euro was quoted at $1.1792, down from $1.1821. The dollar bought 117.83 yen, down from 118.24. The British pound traded at $1.7433, down from $1.7510.

EARNINGS NEWS

Radica Games (RADA: chart), video-game maker, announced that Q3 net profit soared 67% to 51 cents a share from the year-ago period. Sales climbed 30% on continued strength in the electronic games category.

U.S. Concrete, Inc. (RMX: chart), concrete and related products producer, reported that Q3 net profit advanced 13% to 31 cents a share from the year-ago quarter. Sales climbed 16.2% on higher ready-mix concrete prices and sales volumes. The company expects Q4 earnings in the range of 6 cents to 11 cents a share.