European markets finished in the red, reflecting U.S. inflation concerns. Interest-rate decisions also weighed on the sentiment. The Bank of England decided to leave the rate at 4.5%, followed by the European Central Bank which left the key rate unchanged at 2%. The German DAX 30 lost 1%, the French CAC 40 fell 1.3%, and London’s FTSE 100 slipped 1%.

ENERGY, METALS, CURRENCIES

Oil prices dropped to a two-month low, reflecting signs of weakening U.S. gasoline demand due to high pump prices. Light sweet crude for November delivery lost $1.24 to trade at $61.55 a barrel on the Nymex. Heating oil dropped 6.48 cents to $1.95 a gallon. Gasoline futures slid 7.2 cents to $1.83 a gallon. Natural gas prices fell by 82 cents to $13.36 per MBTU. London Brent lost $1.58 to $58.54.

Gold prices climbed in European trading on the back of weaker dollar. In London the precious metal closed at $471.40 per troy ounce, up from $464.10. In Hong Kong gold rose 50 cents to close at $466.15. Silver closed at $7.51, up from $7.33.

In European trading the U.S. dollar declined against its major counterparts. The euro was quoted at $1.2130, up from $1.1954.The dollar changed hands at 113.54 yen, down from 113.93.The British pound was trading at $1.7723, up from $1.7630.

EARNINGS NEWS

Costco Wholesale Corp. (COST: chart), retailer, reported a Q4 profit rise of 19.5% to73 cents a share on 10.3% revenue growth and announced its intentions to buy back another $1 billion in shares. The company said the quarter included 7 cents in tax benefits; apart from those benefits, its earnings of 67 cents topped analysts’ forecasts of 64 cents a share. Comparable sales increased 11% in September, with overall sales up 13% to $5.14 billion.

Marriott International Inc. (MAR: chart), lodging industry operator, reported 12% Q3 net income rise to 65 cents per share, beating the analyst estimate by a penny, and up from 56 cents per share in the year-ago period on revenue growth at the company's hotels, boosted by higher room rates. The latest quarter incorporated a charge of 5 cents per share for writing down the value of the company's investment in a Delta Air Lines leveraged aircraft lease. Excluding the charge, net income was 70 cents per share.
ATI Technologies, Inc. (ATYT: chart), graphics chipmaker, reported a Q4 loss of 41 cents a share on revenue decline from $60 million from the Q3 to $470 million, missing the analysts’ forecasts for a loss of 30 cents a share. Excluding one-time items, the company reported a loss of 12 cents a share.

RPM International, (RPM: chart), specialty paints manufacturer, announced that Q1 net income dropped to 40 cents a share, from 44 cents a share in the year-earlier period, missing the analysts’ forecasts of 48 cents a share. Without asbestos-related costs, net income in the current period was 47 cents a share. The company stated that its Q2 will be """"""""""""""""particularly challenging"""""""""""""""" because of Hurricanes Rita and Katrina.

Schnitzer Steel Industries, Inc., (SCHN: chart), recycler, posted Q4 net income of $1.11 per share, down from $1.22 per share in the same period last year on revenue decline. The company posted for the fiscal year ended August 31, 2005, record net income of $4.72 per share, up vs. $3.58 per share in the year-ago period on revenue of $853.1 million, up from $688.2 million for the 2004 fiscal year.

CORPORATE NEWS

Goody's Family Clothing (GDYS: chart) has reached an agreement to be acquired by an affiliate of Sun Capital Partners for $8.00 per share in cash. The company said it expects a definitive agreement within the next 48 hours. Separately, Goody's reported a 5.5% drop in September same-store sales.