U.S. MARKET AVERAGES

The Dow Jones industrial average was up 70.58 to 10,519.72, the broader Standard & Poor's 500 dropped 0.35 to 1,219.09, and the Nasdaq composite fell 3.18 to 2,132.25.

The S&P Retail Index climbed to 459.7. Home Depot shares jumped 1%, or 38 cents, to $40.68.

Shares of Hudson United Bancorp (HU: chart) rose in early Tuesday trading in the financial sector after the company agreed to be acquired by TD BankNorth at a 14% premium. Hudson shares leapt 11.2% to $41.70, TD BankNorth shares dropped 2% to $29.37.

7-Eleven added $2.07, or 6.6%, to $33.42. The company’s gasoline sales at stores open at least a year jumped 13% in June, and merchandise sales rose by 5.9%.

DreamWorks Animation SKG shares dropped 3.54, or 13%, to 23.27 after the animation studio cut its 2Q and full-year earnings outlook due to higher-than-expected video returns and disclosed the SEC has launched an informal inquiry related to trading of its shares and its financial disclosures.

Pilgrim's Pride leapt 2.18, or 6.1%, to 38.15. The company boosted 3Q guidance on better-than-anticipated results from its U.S. and Mexican chicken operations.

General Motors gained 1.12, or 3.2%, to 35.80. General Motors Acceptance Corp., the auto maker's financing arm, backed its outlook of consolidated net income of at least $2.5 billion for this year and reaffirmed that it plans to remit more than $2 billion in dividends to its parent auto maker.

Alcoa rose 49 cents, or 1.8%, to 27.69. The gain followed Alcoa's 4.3% jump on Friday, after the aluminum producer posted better-than-expected 2Q earnings.

INTERNATIONAL MARKET NEWS

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 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.

Gold futures rose in London to $426.95 bid per troy ounce, up from $425.80. In Hong Kong gold gained $2.2 to close at $427.25 per ounce. Silver was also up to $7.11 per ounce from $7.07.

The U.S. dollar dropped against other major currencies. It fell to a2-week low vs. the euro on trade-deficient concerns. The euro quoted at $1.2170, up from $1.2072. The pound traded at $1.7673, a rise from $1.7575. The greenback bought 111.15 yen, down from 111.85.

EARNINGS AND CORPORATE NEWS

Marshall & LLsley, financial services firm, posted 2Q income growth of 81 cents per share vs. 67 cents a year ago on increased total loans and leases beating expectations of 74 cents a share.

Ameritrade, online broker, reported 3Q earnings rise of 18 cents per share vs. 15 cents a year ago on higher interest income and lower expenses. Analysts had expected 17 cents per share.

Audiovox , consumer electronics maker, reported 2Q profit increase of 25 cents per share vs. 16 cents last year on higher sales of flat-screen TVs and a tax benefit.

Bank of Granite posted 2Q earnings rise to 30 cents a share from 24 cents for the last-year same quarter.