U.S. MARKET AVERAGES

The stock markets advanced on Friday, extending yesterday’s gains as crude oil dropped below $58 a barrel, easing concerns about high energy prices and Dell announced it plans to buy back at least $1.7 billion in stock. As a result the three major averages have been posting gains in early going, led by a 0.2% advance in the Nasdaq. Trading is expected to be light as fixed income trading is closed for holiday and no market-moving economic or corporate data are expected.

Disk drive stocks were among the worst performers in Thursday''s early session, but rallied in the afternoon and finished flat. The sector has risen Friday by 1%. Internet stocks are also strong. Though some expressed disappointment about its guidance, Dell (DELL: chart) is now up 1.3%, helping to boost the computer hardware space.

There are a few notable decliners. The utility sector is extending Friday’s losses in the early session. Energy stocks are also continuing Thursday''s weakness.

MOVERS AND SHAKERS

The computers maker Dell Inc. (DELL: chart) posted earnings yesterday that met Wall Street''s forecast. The company’s stock added 0.1%.

The media conglomerate News Corp. (NWS: chart) reported a quarterly loss of $433 million resulted from a $1 billion charge on the way it values television station licenses. However, the company’s results beat expectations. News Corp stock is expected to be active today.

According to a report in The Wall Street Journal, the judge overseeing Vioxx-related lawsuits in Merck & Co.’s (MRK: chart) home state, New Jersey, told lawyers she wants the next 10 trials in her court to involve plaintiffs who took the drug for at least eighteen months. The report said it will make it more difficult for Merck to defend itself, since the company has discovered that Vioxx increases heart-attack risks for people who used it daily for 18 months or more. The company’s stock lost 0.6%.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks gained across the region with the Nikkei rising 0.5% on better-than-anticipated GDP growth, 1.7% versus expectations of 1.1%. South Korea’s main stock market index hit an all-time high of 1.8%, supported by tech stocks like Samsung Electronics and Hynix Semiconductor. Hong Kong’s Hang Seng gained 0.9%, while China’s Shanghai Composite added 0.4%.

European markets posted solid gains at mid-day, reflecting U.S. markets rally overnight and weaker oil which boosted automakers and tech shares. The German DAX 30 climbed 1.3% on corporate earnings, the French CAC 40 added 0.1%, and London’s FTSE 100 gained 0.5%.

OIL, METALS, CURRENCIES

Crude oil dropped to $57 a barrel on rising supply and declining demand. Light sweet crude December delivery lost 71 cents to trade at $57.09 a barrel on the Nymex. Heating oil shed 2 cents to trade at $1.7208 a gallon. Gasoline declined 3 cents to $1.4794. Natural gas dropped 1 cent to $11.370 per 1,000 cubic feet. London Brent declined 83 cents to $54.85.

Gold prices slipped in European trading. In London the precious metal was fixed at $465.90, down from $466.60. In Zurich gold fell to $465.78 from $467.55. In Hong Kong gold lost $0.80 to close at $465.95. Silver traded unchanged at $7.46.

The U.S. dollar traded mixed against major currencies. The euro was quoted at $1.1700, down from $1.1731. The dollar bought 118.00 yen, down from 118.04. The British pound traded at $1.7403, down from $1.7458.

EARNINGS NEWS

Biovail Corp (BVF: chart), pharmaceutical products manufacturer, reported quarterly net profit of 64 cents a share, more than double the year-ago profit of 31 cents a share a year ago on revenue growth. The company lifted its outlook for full year 2005 earnings to $1.80 to $1.85 from $1.75 to $1.80.

Petrohawk Energy (HAWK: chart), independent explorer, reported a quarterly loss of 56 cents a share mostly due to a pre-tax $74.9 million charge for marking-to-market derivatives contracts. If not for those items, the company gained 18 cents a share, with revenue soaring to $81.4 million from $5.6 million as production rose 74% and as it realized higher gas and oil prices.

Dell Inc. (DELL: chart), personal-computer company, posted Q3 profit of 25 cents a share, down from 33 cents a share in the year-ago period. If not for one-time charges, the company would have gained 39 cents a share, meeting its own lowered estimates. The company anticipates a Q4 profit of 40 cents to 42 cents a share.

Pacific Sunwear of California Inc. (PSUN: chart), apparel retailer, announced that its net earnings surged 20% on stronger year-over-year sales growth and an increase in its gross margin. The company reported Q3 earnings of 54 cents a share, up from 44 cents a share in the same period last year, matching the analyst estimate. Revenue increased 14%.

Target Corp. (TGT: chart), discount retailer, posted Q3 earnings of 49 cents a share, down from 59 cents a share in the same period last year on revenue growth, beating analysts’ forecasts of 45 cents a share.. The company stated that it was confident that it will achieve its target for second-half earnings of $1.50 a share. The company added that it raised its current stock buyback program by $2 billion.