The U.S. dollar advanced for the third consecutive session, reflecting higher consumer prices for July. The dollar stood at $1.2330 against the euro, up from $1.2367. The U.S. currency rose against the yen to trade at 109.60, up from 109.25.

EARNINGS NEWS

Home Depot, building materials seller, announced 2Q net profit was up to 82 cents a share from the year-ago period on 11.7% revenue growth, with same-store sales up 4%, beating analyst estimate of 79 cents earnings a share.

Wal-Mart, retailer, posted 2Q earnings of 67 cents per share, up vs. 62 cents per share in the same period last year on sales increase, beating analyst estimate of 65 cents per share.

J.C. Penney, department store retailer, posted 2Q earnings from continuing operations of 46 cents a share, up vs. a year-earlier equivalent profit of 22 cents a share on strong operating performance and the positive impact of its ongoing buyback program, beating analysts’ expectations of 40 cents a share. Same-store sales rose 4.2% in the July period.

Applied Films, posted a 4Q net loss of 20 cents a share, down from a profit of 18 cents a share in the same period last year on revenue decline of 25%.

Dick's Sporting Goods, sporting goods retailer, posted 2Q earnings of 45 cents a share, up vs. 34 cents a share in the year-earlier period on sales increase, matching analyst estimate.

Estee Lauder, skin care, makeup, fragrance and hair care products manufacturer, announced that 4Q net income from continuing operations was down to 30 cents a share from 31 cents in the year-earlier period. Aside from a tax charge for repatriated foreign earnings, income from continuing operations would have been 42 cents a share, or 1 cent ahead of analysts' expectations. Sales for the period ended June 30 were up, beating of analysts' estimates.

American Eagle Outfitters, merchandise goods seller, announced that 2Q profit rose to 37 cents a share vs. 20 cents in the same period last year on strong sales performance, beating analysts’ forecasts by a penny.

TJX, apparel and home fashions retailer, announced that 2Q profit advanced to 25 cents a share, up from 23 cents in the year-earlier period on sales growth, with same-store sales up 1%, missing analyst estimate by a penny.

National RV Holdings, motor homes manufacturer, posted a preliminary 2Q net profit of 53 cents a share, up from 24 cents a share in the same period last year. Preliminary second-quarter sales were up 3%.

CORPORATE NEWS

Delta Airlines, announced a decision to sell one of its regional feeder subsidiaries to Sky West for $425 million, but the company added that the sale won’t be able to cover a new cash reserve needed to secure a new credit-card processing deal by the end on this month.

OTHER NEWS

China reported a solid growth of 16.1% of its industrial output for July, reflecting strong exports, which is expected to keep the bullish tendency, despite the revaluation of the yuan.


ECONOMIC NEWS

CONSUMER PRICE INDEX: JULY 2005

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in July, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The July level of 195.4 (1982-84=100) was 3.2 percent higher than in July 2004.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.5 percent in July, prior to seasonal adjustment. The July level of 191.0 was 3.3 percent higher than in July 2004.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.4 percent in July on a not seasonally adjusted basis. The July level of 113.4 (December 1999=100) was 2.6 percent higher than in July 2004. Please note that the indexes for the post-2003 period are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U, which was unchanged in June, increased 0.5 percent in July. Energy costs advanced sharply, increasing 3.8 percent in July after falling 0.5 percent in June.

Within energy, the index for petroleum-based energy rose 6.1 percent in July, accounting for over one-half of the increase in the overall CPI. Energy services increased 1.1 percent.

The index for food increased 0.2 percent in July. The index for fruits and vegetables, which fell 1.2 percent in June, increased 1.6 percent in July. The index for all items less food and energy increased 0.1 percent for the third consecutive month. A decline in new vehicle prices--down 1.0 percent in July--was more than offset by increases in the indexes for airline fares and for lodging away from home.