U.S. MARKET AVERAGES


The U.S. averages made a strong opening after the three-day-long holiday weekend and are trading higher in the first half an hour of Tuesday session, supported by 1% drop in oil prices. Stocks were also helped by the reopening of two oil facilities in the Gulf of Mexico which have resumed gasoline production.
The Dow is leading the advance with a 0.6% gain. The Nasdaq and S&P 500 are each climbing by around 0.5%.

The utility sector, together with the financial and technology sectors, are the leading gainers of the day. The retailer sector is also up.
The energy sector is the biggest loser in morning trading, being one of the very few major sectors in the red.

JoS A Bank Clothiers, retailer, posted 2Q earnings rise of 55.8% and raised its full-year profit outlook.

Wal-Mart, the world's No.1 retailer, added 64 cents to $45.19. The company said sales at its U.S. stores open at least a year rose within its forecast range in the week after Hurricane Katrina struck.

Home Depot, the largest home-improvement retailer, added 59 cents to $40.92 amid optimism the company may benefit from post- Katrina rebuilding efforts. The hurricane left a $100 billion trail of destruction, according to Risk Management Solutions Inc., an insurance-industry consultant.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks ended the session mixed after trading in the positive at mid-day on crude-oil prices down at $66.46 a barrel. The Nikkei declined 0.3% as investors digested domestic economic data and took profit in steel and retailer stocks sell-off. Across the region, Hong Hong’s Hang Seng lost 0.4%, while South Korea’s Kospi gained 0.7%. The dollar edged up versus the yen to 109.45.

European markets were trading higher in mid-day dealings, boosted by merger and acquisition news coming from the Spanish Gas Natural SDG which offered to buy electric utility Endesa and positive earnings report from the French insurer AXA. Declining oil prices, trading at $66.65 a barrel, also provided support to the stock markets. The German DAX 30 added 0.5%, the French CAC 40 rose 0.6%, and London’s FTSE 100 climbed 0.3%.


ENERGY, METALS, CURRENCIES

Oil and gas prices declined as markets took some relief in the decision of the IEA to release 60 million barrels from strategic reserves. Light sweet crude for October delivery fell 79 cents to $66.78 a barrel in electronic trading on the Nymex. Unleaded gas was down 4 cents to $2.1410 a gallon. Heating oil lost 3 cents to $2.0603 a gallon. London Brent added 41 cents to $65.21.

Gold fell in European trading as the U.S. dollar edged up. In London midmorning trading gold stood at $443.50 per troy ounce, down from $445.00. In Hong Kong the precious metal lost $2.5 to close at $443.35. Silver opened at $6.98, down from $7.05.

The U.S. dollar advanced against other major currencies in European trading. The euro was quoted at $1.2463, down from $1.2521. The dollar bought 109.66 yen, up from 109.16. The British pound stood at $1.8417, down from $1.8443.

EARNINGS NEWS

JoS A Bank Clothiers, retailer, announced 2Q earnings went up 55.8% to 37 cents a share, and raised its full year earnings guidance to a $2.15 to $2.19 range. Analysts expected 2Q earnings per share of 33 cents and $2.14 a share fro the full year. JoS. A Bank Clothiers had posted before a 20.2% sales increase. Comparable store sales advanced 4.9%.

Core-Mark, convenience retail industry distributor, reported today first-half net income of 2005 advanced to 56 cents per share, up vs.14 cents per share for the same period last year on a strong net sales growth and a significant income increase from operations for the same period of 2005.

Lowrance Electronics, reported 4Q net income advanced to 49 cents a share, slightly down from 51 cents a share in the year-ago period despite 59% sales growth. 5.1 million diluted shares were outstanding in the current quarter, up from 4 million diluted shares a year ago.

Psychiatric Solutions, behavioral health care services provider, improved its 2006 earnings outlook to $2.10 to $2.15 a share from $1.97 to $2.05 a share owing to better-than-expected terms of its new credit facilities and sustained growth in its existing and acquired operations. The forecast takes into account the impact of planned 3.5 million share offering, but does not include the influence of any future acquisitions. The analyst estimate had been of earnings of $2.09 a share.