10:00AM New York – U.S. stocks edged higher. Wholesale inflation index rises in the U.S. and consumer prices increase in UK. Goldman Sachs report 12% rise in earnings.

U.S. stocks edged higher in the morning trading after earnings rise at Goldman Sachs lifted trading sentiment despite a sharper than expected gain in producer price index and a fall in housing starts in May. UK inflation jumped to 10-year high in May after euro area inflation surged to 16-year record high in the month.

Housing starts fall and producer price index rises

More economic data in the U.S. confirm the rising inflation at wholesale level and persistent weakness in the housing market.

The Labor Department reported May producer price index rose 1.4% on rising food and energy prices after gaining 0.2% in April. The increase in the index was higher than a rise of 1.3% that few economists had estimated. The index is likely to inch as higher as crude oil prices have edged higher since the completion of the report.

The Commerce Department reported May housing starts fell 3.3% to 975,000 and building permits dropped 1.3% to 969,000. The housing starts have been lagging as mortgage availability has declined in the last one year.

UK inflation rises to 10-year high

Inflation in the UK surged to a 10-year high after the consumer price index rose at 3.3% in May from a year ago according the Office of National Statistics. The pound weakened against the euro and is likely to drop further as inflation is expected to rise to 4% by the end of the year. The Bank of England Governor Mervyn King two weeks ago suggested that the inflation in the short term may increase before it stabilizes.

Goldman Sachs earnings rise

The Goldman Sachs Group, Inc, a global investment banking service company reported second quarter revenues decreased 8.06% to $9.42 billion from $10.18 billion a year ago. Net income in the quarter declined 11.78% to $2.09 billion or $4.58 per diluted share compared to net income of $2.33 billion or $4.93 per share, a year ago.

The Goldman Sachs Group, Inc (GS) in the last one year traded as high as $250.70 in October 2007 and as low as $140.27 in March 2008. Based on the yesterday’s closing price the company has a market cap of $71.78 billion.

Earnings review

Asure Software Inc, a provider of scheduling and asset management software solutions reported third quarter revenues decreased 87% to $2.7 million from $21.0 million a year ago. Net loss in the quarter was $1.6 million or 5 cents per diluted share compared to net income of $6.0 million or 23 cents per share, a year ago.

Asure Software Inc (ASUR) in the last one year traded as low as $1.49 in October 2007 and as high as $20.29 in April 2008. Based on the yesterday’s closing price the company has a market cap of $16.40 million.

Best Buy Co., Inc, the consumer electronics retailer chain reported first quarter revenues increased 13% to $9.0 billion from $7.9 billion a year ago. Net income in the quarter fell 10% to $179 million or 43 cents per diluted share compared to net income of $192 million or 39 cents per share, a year ago.

Best Buy Co., Inc (BBY) in the last one year traded as high as $53.90 in December 2007 and as low as $38.75 in March 2008. Based on the yesterday’s closing price the company has a market cap of $18.89 billion.

FactSet Research Systems Inc, a provider of financial data reported third quarter revenues increased 22% to $147.4 million from $121 million a year ago. Net income in the quarter rose 14% to $32.5 million or 65 cents per diluted share compared to net income of $28.6 million or 56 cents per share, a year ago.

FactSet Research Systems Inc (FDS) in the last one year traded as high as $73.99 in October 2007 and as low as $43.04 in March 2008. Based on the yesterday’s closing price the company has a market cap of $3.11 billion.

The Goldman Sachs Group, Inc, a global investment banking service company reported second quarter revenues decreased 8.06% to $9.42 billion from $10.18 billion a year ago. Net income in the quarter declined 11.78% to $2.09 billion or $4.58 per diluted share compared to net income of $2.33 billion or $4.93 per share, a year ago.

The Goldman Sachs Group, Inc (GS) in the last one year traded as high as $250.70 in October 2007 and as low as $140.27 in March 2008. Based on the yesterday’s closing price the company has a market cap of $71.78 billion.