Oil prices dropped in early trading but were still above $65 a barrel. The September light crude futures contract for NYMEX lost 27 cents to $65.08 a barrel in electronic trading early Monday, while the October contract for Brent crude shed a penny at $64.35.

The dollar dropped vs. the euro and the yen Monday, after the greenback had rallied last week on positive U.S. economic reports and expectations of higher interest rates. The euro was quoted at $1.2180 in European trading, up vs. $1.2163 late Friday in New York. The British pound climbed to $1.7991 vs. $1.7961 on Friday. The dollar fell to 109.85 yen from 110.45 yen as stocks in Tokyo reached a new four-year high.

Gold closed at $437.55 an ounce on Monday in Hong Kong, down $1.2 an ounce versus Friday's close of $438.75.

Treasury prices were lower, raising the yield on the 10-year note to 4.23% vs. the 4.20% level late Friday.

EARNINGS NEWS

Heinz Company (HNZ: chart) posted earnings for 1Q 2006, excluding special items, of 52 cents per share vs. 55 cents per share in the same period a year ago. Analysts expected earnings of 49 cents per share for the quarter. Sales for the first quarter totaled $2.110 billion vs. 2.003 billion prior in the year.

J. M. Smucker Company (SJM: chart), jams, jellies and preserves producer, announced that its earnings per share from continuing operations for 1Q of 2006 were 51 cents, up vs. 50 cents the year-ago period with sales climbing some 23% in 1Q of fiscal 2006.The analyst estimate was for 63 cents per share.

LanVision Systems Inc. (LANV: chart) posted 2Q net income of 6 cents per share vs. a net loss of 5 cents per share in the same quarter last year. Revenues for the quarter were up 59% to $4.06 million from $2.56 million in the year-ago quarter.

Benihana Inc. (BNHN: chart) posted 1Q net income of 44 cents per share vs. 20 cents per share in the year-ago period. Total revenues rose 13% to $74.1 million vs. $65.4 million last year.

CORPORATE NEWS

PetroKazakhstan Inc. (PKZ: chart) said it has entered into an arrangement agreement according to which a wholly-owned subsidiary of CNPCI would offer $55.00 per share in cash for all outstanding common shares of PetroKazakhstan. The aggregate value of the transaction is about $4.18 billion. The Board of Directors of PetroKazakhstan has recommended that its shareholders accept CNPCI's offer. The transaction is expected to be completed October 2005.

OSI Pharmaceuticals (OSIP: chart) has agreed to buy Eyetech Pharmaceuticals (EYET: chart) in a deal worth about $935 million. Under the agreement, each Eyetech share would be exchanged for $15 in cash and 0.12275 of an OSI share. The companies said that they expect to complete the transaction by the end of 2005.

Northwest Airlines Corp. is put to the test as it will try to keep planes flying on heavier weekday levels Monday with its mechanics still on strike. In anticipation of the strike, the nation's fourth-biggest carrier switched to its fall schedule Saturday, a week earlier than planned, making the schedule lighter by about 17%. No talks are scheduled between Northwest and the union, which is refusing to take pay cuts and layoffs that would have reduced their ranks almost by half.

SBS Broadcasting S.A. (SBTV: chart) revealed that it has entered into a definitive deal for its business to be bought by funds advised by Permira and affiliates of Kohlberg Kravis Roberts & Co. in a transaction valued at about $2.549 billion, on an enterprise value basis. An acquisition company jointly held by Permira and KKR has agreed to pay SBS 1.691 billion euro in cash for substantially all of SBS's assets, and to assume substantially all of its liabilities, resulting in a total transaction value, excluding minorities, of approximately 1.864 billion euro. SBS's business activities would be continued under ownership of Permira and KKR.

German travel company TUI AG revealed Sunday it plans to acquire Canadian firm CP Ships for $2 billion in a deal to bolster the company’s container shipping business. According to TUI, the Canadian company's board of directors unanimously recommended that its shareholders accept the all-cash offer of $21.50 per share - a premium of 9.7% over CP Ships' closing share price on Friday.

Freescale Semiconductor Inc. (FSL: chart) announced that it has acquired the assets of Seaway Networks Inc. The company said that Seaway Networks is a fabless semiconductor supplier of content processing technology and solutions for the data networking industry. The company did not reveal the financial terms of the deal.

OTHER NEWS

Iraq's oil exports were shut down Monday by a power cut that left parts of central and southern Iraq dark, including the country's only functioning oil export terminals. Sabotage was also blamed for Monday's blackout, which prevented oil from being pumped into tankers waiting at berths, according to Iraqi officials. There was no electricity Monday morning in Basra and in the port city of Umm Qasr, too. Exports through the country's other main route, the northern export pipeline to Turkey, have long been halted by incessant sabotage.