U.S. MARKET AVERAGES

Market averages did not register a move but home builders, Home Depot, Apple Computer and healthcare stocks did move.

Apple Computer Inc at Macworld Expo announced that first quarter revenue reached $5.7 billion on iPod sales growth of 300% and Macintosh computer sales crossed one million units for the fifth quarter in a row. Apple sold 14 million iPod music players and 1.25 million and attracted 26 million visitors to its stores which generated $1 billion in sales for the first time, Chief Executive Officer Steve Jobs said at the gathering in San Francisco today. Apple Computer stock jumped 6% as Mr. Jobs spoke at the gathering.

General Motors after rising 7% yesterday lost 1.36% today. Aide to Kerkorian said that company should cut dividend and salaries of executives. GM also announced price cuts on most of its 2006 models. Detroit is hosting the annual auto show and talks of problems at domestic auto makers are dominating the agenda of foreign visitors.

Health-care stocks declined as drug makers, HMOs and assisted living service providers declined. Guidant shares declined for most of the day but closed up 39 cents.

Material stocks came under heavy pressure as Phelps Dodge (PD: chart) lowered its revenue and earnings outlook for the quarter on higher copper prices and lower profit from Alcoa (AA: chart) also put the sector in negative spotlight. Phelps Dodge lost 5% at close but tumbled 11% during the day.

Home Depot proposed $3.2 billion merger with Hughes Supply (HUG: chart). Hughes, located in Orlando, Florida distributes construction, repair and maintenance supplies to tradesmen. Home Depot (HD: chart) was the largest percentage gainer in Dow Industrial Average up 2.4% and Hughes gained 18.3% at close.

Semiconductor stocks advanced led by Advanced Micro Devices. The AMD stock has gained 5% on analyst upgrade and hope that Dell will select company chips for its line of computers. The stock has gained more than 100% in 52 weeks.

MOVERS AND SHAKERS

Planar Systems (PLNR: chart), flat-panel-display-systems maker, raised its Q4 sales and earnings forecast on higher-than-expected sales of some higher margin display products in its industrial and medical divisions. The company expects revenue of $56 million to $57 million and earnings of 8 cents to 10 cents a share. The company’s shares climbed 23.8%.

Home Depot Inc (HD: chart) agreed to buy Hughes Supply Inc., a distributor of construction, repair and maintenance products, for $3.47 billion, or $46.50 a share, assuming $285 million in debt. The stock rose 2.5%.

Bell Microproducts Inc (BELM: chart) , provider of semiconductors, computer platforms, peripherals, storage products, as well as tech services, expects to report a fourth-quarter loss of 23 cents to 30 cents a basic share. Fourth-quarter adjusted net should come in at $1.8 million to $2.7 million, or 6 cents to 9 cents a share, lower than earlier projections of 14 cents to 18 cents. Revenue was around $845 million up, 5% from $808 million. The stock dropped 11.7%.

Endo Pharmaceuticals Holdings Inc (ENDP: chart) forecast 2006 earnings of $1.75 to $1.80 a share, excluding some items, on sales of $860 million to $880 million. Analysts forecast 2006 earnings of $1.65 to $1.95 a share on sales of $820 million. The stock fell 4.4%.

ECONOMIC NEWS

The Department of Commerce released its report on wholesale inventories in the month of November on Tuesday, showing that inventories rose slightly less than economists had been expecting.

The report showed that wholesale inventories rose 0.4 percent in November following a 0.2 percent increase in October. Economists had been expecting inventories to increase by about 0.5 percent.

The increase was partly due to a 0.6 percent increase in inventories of durable goods, which reflected a 1.5 percent increase in inventories of machinery, equipment, and supplies. Inventories of non-durable goods rose 0.1 percent in November.

The report also showed that wholesale sales fell 0.7 percent in November after increasing by 0.9 percent in October. The decrease reflected a 0.5 percent drop in sales of durable goods and a 1.0 percent drop in sales of non-durable goods.

The Commerce Dept. added that the inventories-to-sales ratio edged up to 1.15 in November from 1.14 in October. The ratio came in at 1.18 in November of 2004.

INTERNATIONAL MARKETS NEWS