U.S. AVERAGES

Traders are looking at the sunny side of the Fed’s transcript or may be it is summer heat. Market is trading higher after the Fed’s widely expected short-term rate hike and traders are focusing on the Fed’s statement that the economic expansion is on track with inflation contained.

In the morning hours of trading tech, semiconductor, homebuilders and luxury retailers are trading higher while Internet, oil drillers, and restaurant stocks are trading lower.

Shares of Federated Department Stores are trading up by better than $2 on meeting the earnings estimates. Cicso is trading lower by 4% after reporting rise of 11% in revenue and 12% in earning, however, the company lowered the guidance for the next quarter.

AIG shares are up by better than $1. The company reported this morning earning of $1.52 vs. $1.21 estimates.

Stocks in financial services sector are trading higher with significant gains. The shares of Legg Mason, T.Rowe Price, Alliance Capital are up.

Mittal Steel, largest steel maker, reported 15% lower earnings and predicted lower earnings in the third quarter.

American Italian Pasta shares declined to all-time low a day after company delayed the quarterly filing and estimated net loss for the year.

ECONOMIC NEWS

The weekly crude inventories rose by 2.8 million barrels vs. one million barrels draw down estimated by the market. The gasoline inventory fell by 0.1 million more than estimated and distillate inventories rose by 0.9 million barrels more than anticipated by the market.

The unedited copy of the Weekly Petroleum Report is in the following paragraphs with the web link to the report.

Summary of Weekly Petroleum Data for the Week Ending August 5, 2005

U.S. crude oil refinery inputs averaged nearly 16.0 million barrels per day during the week ending August 5, down 64,000 barrels per day from the previous week's average. Refineries operated at 95.0 percent of their operable capacity last week.

However, gasoline production increased, averaging nearly 8.8 million barrels per day, while distillate fuel production inched up slightly, averaging 4.3 million barrels per day.

U.S. crude oil imports averaged nearly 11.1 million barrels per day last week, up 101,000 barrels per day from the previous week, and the second highest weekly average ever. Over the last four weeks, crude oil imports have averaged 10.7 million barrels per day, an increase of 374,000 barrels per day from the comparable four weeks last year.

Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged nearly 1.2 million barrels per day, the largest weekly average so far in 2005, while distillate fuel imports averaged 182,000 barrels per day.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 2.8 million barrels from the previous week. At 320.8 million barrels, U.S. crude oil inventories are well above the upper end of the average range for this time of year. Total motor gasoline inventories fell by 2.1 million barrels last week, putting them in the lower half of the average range.

Distillate fuel inventories increased by 2.6 million barrels last week, and are just above the upper end of the average range for this time of year. A sharp increase in high-sulfur distillate fuel (heating oil) more than compensated for a decline in low-sulfur distillate fuel (diesel fuel).

Total commercial petroleum inventories rose by 3.4 million barrels last week, and are above the upper end of the average range for this time of year.

Total product supplied over the last four-week period has averaged nearly 21.0 million barrels per day, or 0.2 percent more than averaged over the same period last year. Over the last four weeks, motor gasoline demand has averaged nearly 9.5 million barrels per day, or 1.4 percent above the same period last year.

Distillate fuel demand has averaged 4.0 million barrels per day over the last four weeks, or 4.4 percent above the same period last year. Kerosene-type jet fuel demand is down 0.1 percent over the last four weeks compared to the same four-week period last year.