European markets lost ground at mid-day trading on mixed corporate upgrades from pharmacy chain Boots Group and sugar refinery Tate & Lyle, although strength in steel and mining stocks provided some support to the markets with Arcelor rising 2.7% and Corus up 2.9%. The German DAX 30 lost 0.2%, the French CAC 40 declined 0.1%, and London’s FTSE 100 was flat. The euro was steady against the dollar at $1.2061.

ENERGY, METALS, CURRENCIES

Crude-oil prices surged over $66 a barrel, but refined products prices declined after the U.S. petroleum inventory report, which showed a drop of crude and distillate stocks but an increase of gasoline stocks. Light sweet crude November delivery added 15 cents to $66.50 a barrel in electronic trading on the Nymex. Heating oil inched up to $2.1345 a gallon, while gasoline was up 1 cent to $2.3300 London Brent added 7 cents to $64 a barrel.

Gold prices jumped in European trading, reflecting higher crude-oil and weaker dollar. In London the precious metal traded at $472.50 per troy ounce, up from $463.90. In Hong Kong gold rose $8.20 to $470.25. Silver traded at $7.35, up from $7.30.

The U.S. dollar lost ground against the other major currencies in European trading. The euro was quoted at $1.2054, up from $1.2038. The dollar changed hands at 112.72 yen, up from 113.01. The British pound was trading at $1.7651, up from $1.7648.

EARNINGS NEWS

PepsiCo (PEP: chart), beverages and foods manufacturer, reported 3Q earnings dropped 37% to 51 cents a share and after adjusting for repatriating $7.5 billion of international earnings, its earnings of 78 cents a share beat analysts’ forecasts of 73 cents a share. Revenue soared 12.7% to $8.18 billion, also beating analyst estimate

Emmis Broadcasting Corp. (EMMS: chart), broadcasting company, reported 2Q net income dropped to 15 cents a share, down from 23 cents a share in the year-ago period, on higher interest expense from debt incurred to implement the company's Dutch Auction stock repurchase in June. Revenue for the period advanced 11% to $108 million. The company also stated that the sale of 9 of its 16 stations would lead to proceeds that exceed expectations.

American Greetings Corp. (AM: chart), greeting cards maker, reported that 2Q net income dropped to 5 cents per share, down from 10 cents per share a year earlier as weak international business countered strong domestic growth. Sales shed 1 % to $387.6 million from $392.1 million in the year ago period.

Family Dollar Stores Inc. (FDO: chart), discount retailer, posted 4Q earnings of 18 cents a share, down from a year-earlier profit of 25 cents a share, beating analyst estimate by a penny. Sales advanced 8% and Same-store sales rose 0.6%, compared to the same period last year.

CORPORATE NEWS

E-Trade Financial Corp. announced it has agreed to buy BrownCo from JPMorgan Chase & Co. for $1.6 billion in cash. For the online brokerage this will be the second acquisition deal of a rival in the last two months.