INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed lower, reflecting domestic worries and lackluster U.S. markets session Monday. The Japanese Nikkei shed 0.12% on bank shares and other overvalued stocks sell-off. Across the region, Hong Kong’s Hang Seng finished flat, South Korea’s Kospi declined 0.3%, and Singapore Straits Times lost 0.7%.

European markets fell across the region, pressured by disappointing outlooks from telecom company Vodafone and drinks maker Diageo. Weaker U.S. markets also weighed on sentiment. The German DAX 30 lost 0.2%, the French CAC 40 shed 0.2%, and London’s FTSE 100 declined 0.7%.

OIL, METALS, CURRENCIES

Crude oil prices dropped close to $57 a barrel as unusually warm weather encouraged refiners to stockpile winter fuel. Light sweet crude December delivery fell 32 cents to $57.37 a barrel. London Brent lost 37 cents to $54.36.

Gold traded mixed in Europe. In London the precious metal closed at $467.90 per troy ounce, up from $467.50. In Zurich gold fell to $466.95 from $467.25. In Hong Kong gold fell $2.30 to close at $468.25. Silver traded at $7.70, down from $7.80.

The U.S. dollar strengthened against its major counterparts. The euro was quoted at $1.1688, down from $1.1693. The dollar bought 119.15 yen, up from 118.71. The British pound traded at $1.7349, down from $1.7383.

EARNINGS NEWS

Home Depot Inc. (HD: chart), home-improvement retailer, posted a Q3 net income of 72 cents a share, up from 60 cents in the same period a year ago, beating analyst estimate of 68 cents a share. Sales increased 10.5%, as comparable-store sales rose 3.6%. Operating margin grew to 11.9%, as the company''s average ticket rose to $58.92. Home Depot also revised higher projected growth range for full-year sales to 10% to 12%, up from 9% to 12% previously, and raised its growth target for earnings per share to 17% to 18% from a range of 14% to 17%.

Group (VOD: chart), British mobile operator, lowered its interim dividend by 15% to 2.20 pence a share as it posted first-half net profit down 23.5% to 4.36 pence a share on an impairment charge of 500 million pounds. Sales for the period rose 9% to, beating analysts'' expectations, as Vodafone added 10 million new subscribers, bringing its total customer base to 171 million. The group announced it envisages fiscal-year sales between the 6% to 9% range previously indicated.

BJ''s Wholesale Club Inc. (BJ: chart), retailer, posted Q3 net income of 41 cents a share, up 20% from 33 cents a share in the year-earlier period on 9.3% revenue growth and 4.1%. same-store sales rise. Q3 adjusted net income was 38 cents a share, topping analysts’ forecasts of 36 cents a share.

Staples Inc. (SPLS: chart), office products retailer, reported Q3 net income of 32 cents a share, up from 28 cents in the same period last year, matching the analysts’ forecasts. Sales increased 11% , above the analyst estimate. Same-store sales jumped 3%, while North American retail sales increased 9%.

J.C. Penny Co. (JCP: chart), department store operator, posted Q3 earnings from continuing operations of 94 cents a share, up from 50 cents a share, earned in the year-ago period on an improved operating performance, lower interest expense, and the positive impact of its ongoing buyback program, beating analyst estimate of 92 cents a share. Sales rose 2% in Q3 while same-store sales advanced 2.5%.

American Eagle Outfitters Inc (AEOS: chart), specialty apparel retailer, reported that Q3 net income advanced to 47 cents a share, from 38 cents in the year-ago period, beating analyst estimate by a penny. Q3 sales advanced to $577.7 million from $479.6 million in the comparable period. Same-store sales, rose 14%.

Dick''s Sporting Goods Inc (DKS: chart), retailer, reported Q3 net income of 8 cents a share up from a loss of 4 cents a share. If not for merger integration and store closing costs, the company would have gained 8 cents a share, beating analysts’ forecasts by a penny. Q3 sales rose 8%. Same-store sales increased 2.9% over year-ago levels.

Prestige Brands Holdings, Inc (PBH: chart) reported Q2 of fiscal 2006 net income of 15 cents a share, down from a net income of 23 cents a share a year ago. The company added it''s revising financial reports for the years 2003 through 2005 and has deferred its quarterly filing with the U.S. Securities and Exchange Commission.

ArvinMeritor Inc (ARM: chart), manufacturer of components for commercial vehicles, posted Q4 loss of 27 cents a share, up from a loss of $2.23 a share in the year-earlier period. Earnings from continuing operations dropped to 17 cents a share from 44 cents a share in the comparable period last year. If not for items, operating income amounted to 41 cents a share, missing analyst estimate by a penny. Sales increased 6%.

CORPORATE NEWS

Johnson & Johnson (JNJ: chart) announced a new offer to acquire Guidant Corp. (GDT: chart). The company has lowered the price to $21.5 billion in cash and stock, about $ billion less than last year’s original deal of $25.4billion. Last week, Guidant sued Johnson & Johnson for trying to back out of the agreement as Guidant came under scrutiny for recalls of its implantable heart devices.

Allergan (AGN: chart) has made an offer to acquire Inamed (IMDC: chart) for about $3.2 billion in cash and stock. The company reported that the deal would represent a premium of about $450 million over the bid made by Medicis. Allergan stated that under its offer, each Inamed share would be exchanged for $84 in cash or 0.8498 of an Allergan share, subject to proration such that a total of $1.45 billion in cash and 17.9 million shares were exchanged.