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

More influential earnings are due later this week, including Apple Computer, Advanced Micro Devices and General Electric.

PepsiCo, soft drink maker, posted 2Q profit increase of 70 cents per share compared with 61 cents last year on strong growth in its international business. Analysts had expected net income of 67 cents a share.

Media General , newspaper publisher and broadcaster, reported 2Q doubled profit of $1.61 per share vs. 78 cents a year ago including a gain on the sale of its interest in the Denver post.
Excluding special items net income would be 80 cents a share.

M & T Bank posted 2Q profit growth of $1.69 a share vs. $1.53 last year beating expectations of $1.64 per share. The favorable results are due to a loan and deposit increase and improved credit quality.

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.

Eagle Broadband, provider of broadband and communication services, reported 3Q net loss of $3.95 million, an improvement from a loss of $4.38 million a year ago mainly on depreciation and amortization expenses.

Energy Transfer Partners, posted a record 3Q profit jump to $189.5 million from $21.3 million last year including special items.

Horizon Health, contract manager of clinical services, posted 3Q net income increase of $3.5 million, or 24 per share vs. $2.7 million, or 24 cents a share a year ago. The company projected 2005 earnings between $1 and $1.02 a share.

Open Text, software maker, warned that 4Q results will be weaker than previously announced 30 to 40 cents per share though exact range is not given.

Smart & Final, food and supplies warehouse operator, posted 2Q net income of 25 cents per share compared with 26 cents a year earlier. Same-store sales rose 4.1%.

TTI Telecom International, networking software provider, posted a preliminary narrowed 2Q loss of 21 cents vs. a loss of 55 cents a year ago on positive restructuring effect.

Universal Forest Products, a maker of lumber and building materials, posted 2Q earnings increase of $1.20 a share compared with $1.06 last year on higher sales volume and better results for framing operation. The company raised its 2005 earnings outlook by 15 to 20%.

L’Oreal SA said that strong 2Q results and favorable currency fluctuations ‘lead it’ to expect a considerable improvement in 2005 results. 2Q sales grew 5.45% to $3.62 billion euros. Comparable-store sales rose 5.1%.

Alcatel, French telecom equipment maker, posted 2Q net income of 16 cents per share including a tax benefit and one-time capital gain exceeding analysts’ expectations of 14 cents a share.

Infosys Technologies, Indian software and consulting company, reported rise in 1Q profit of 45 cents per share, up from 31 cents a year ago beating estimates of 43 cents a share. The company lifted its 2Q guidance to the range of 46 to 47 cents a share.