U.S. MARKET AVERAGES

U. S. stocks are trading in the negative territory after higher closing on Monday. Investors’ attention is focused on economic data releases, including consumer prices, housing starts and industrial production reports for July.

Dow Jones futures were recently down 24 points, while Nasdaq futures fell 3 points and S&P futures dropped 2.10 points.

The Labor Department announced in its report that the Consumer Price Index rose 0.5% in July, making the highest jump in 3 months. The inflation went higher on 3.8% rise in energy costs.

Consumer prices rose in July on record-high energy products, but new car prices had their biggest decline in 30 years, helping the underlying inflation stay tame.

The Commerce Department is scheduled to launch the housing starts report for July at 8.30 a.m.

The Federal Reserve is due to announce the July industrial production data at 9.15 a.m.

In corporate news

Wal-Mart, the global largest retailer, posted 2Q 6% net income rise on better-than-anticipated results for July.

Home Depot, home-improvement retailer, reported 2Q 14% profit rise on higher store efficiency. The company raised its full-year guidance.

Gateway reported it swung to a profit in the 2Q on record sales, but lowered its sales and profit outlook for2005.

Hewlett-Packard is expected to report 2Q higher sales and profit later in the day.


INTERNATIONAL MARKET NEWS

Asian-Pacific markets ended mixed after edging higher in early trading on retreating crude-oil prices and U.S. equity gains. The regional markets were also helped by overnight advance in Wall Street as investors bought tech stocks. The banks were the leading losers, falling from recent highs. The Nikkei rose 0.5% extending last-week gains on restored confidence in the economic recovery of the country. Averages in Hong Kong fell 0.2% and in South Korea dropped 1.2%.

European stocks moved upward in mid-day dealings on telecommunication takeover news with Deutsche Telecom and Cable & Wireless in the focus and on U.S. stock markets overnight gains. Steady oil, recently traded at $66.02 a barrel, also provided a boost to the markets. The German DAX 30 gained 0.6%, the French CAC 40 added 0.5%, and London’s FTSE edged up 0.2%. The euro was up 0.1% at $1.2363.

ENERGY, METALS AND CURRENCIES MARKETS

Oil prices keep retreating from recent highs on subsiding supply concerns. Light sweet crude for September delivery dropped 44 cents to $65.83 a barrel on the NYMEX in European trading. London Brent was down 39 cents to trade at $65.19.

Gold declined in European trading as the U.S. dollar advanced. In midmorning London trading gold stood at the recommended price of $440.85 per troy ounce, down from $441.35. In Hong Kong the precious metal fell $1.50 to close at $441.25. Silver opened at $6.96 per ounce, up from $6.95.

The U.S. dollar gained against its major counterparts ahead of U.S. government report, expected to show higher consumer prices and accelerating inflation. In European trading the euro was quoted at $1.2325, down from $1.2361. The greenback bought 109.26 yen, down from 109.28. The British pound stood at $1.8094, down from $1.8101.