INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished mixed with bourses in Japan and Singapore closed for holidays. Today’s gainers were led by Australia’s All Ordinaries, rising 1.2% on gains from Westpac Banking Corp. South Korea’s Kospi rose 0.8%, supported by Samsung Electronics, while Hong Kong’s Hang Seng declined 0.1%.

European markets rallied to close higher on strong U.S. markets and earnings news from major companies like BMW, Unilever and Adidas-Salomon. Stocks were also supported by the European Central Bank’s decision to keep interest-rate steady. The German DAX surged 1.1%., the French CAC 40 rose 1.6%, and London’s FTSE 100 climbed 1.4%.

ENERGY, METALS, CURRENCIES

Crude oil traded over $60 a barrel on bargain-hunting. Light sweet crude December contract gained $2.03 to $61.78 a barrel on the Nymex. Heating oil added 5 cents to $1.8388 a gallon. Gasoline climbed 5.7 cents to $1.6268. Natural gas advanced 8.5 cents to $11.689 per 1,000 cubic feet. London Brent rose 74 cents to trade at $59.12.

Gold lost ground in Europe. In London gold traded at $460.50 per troy ounce, down from $461.75. In Zurich it was fixed at $460.25, down from $462.80. In Hong Kong the precious metal rose $3.50 to close at $464.75. Silver closed at $7.52, up from $7.49.

In European trading the U.S. dollar advanced against its major counterparts. The euro was quoted at $1.2009, down from $1.2060. The dollar changed hands at 116.91 yen, up from 116.80. The British pound was trading at $1.7745, up from $1.7750.

EARNINGS NEWS

MCI Inc. (MCIP: chart), telecom carrier, posted Q3 net income of 82 cents a share, up from a net loss of $10.65 a share in the year-ago period. Q3 Results reflected the continued impact of new services and cost-cutting initiatives started in 2004, the company said, as well as it incurred and recorded a $164 million tax reduction in Q3. The year-ago loss largely stemmed from $3.5 billion in impairment charges.

Goody''s Family Clothing, Inc (GDYS: chart), retailer, announced that sales advanced 6.8%, with same-store sales up 2.5%. The company expects to report a greater loss in Q3 than the net loss of 2 cents a share posted in the year-earlier period.

American Retirement Corp (ACR: chart), senior living communities operator, reported that it reversed to to a Q3 profit of 13 cents a share, from a loss of 27 cents a share in the same period last year. Sales rose 11.3%. The company predicts 2005 adjusted earnings in the range of 48 cents to 50 cents a share.

Aquila Inc (ILA: chart), electricity and natural gas utility operator, posted a Q3 loss of 20 cents, up from a loss of 44 cents share on 46% higher revenue. Aquila said its electric- and gas-utility businesses strengthened but earnings were cut by the costs of its remaining obligations related to its merchant business.

Cost Plus (CPWM: chart), discount home products retailer, reported Q3 same-store sales dropped 4.7% from the year-ago period. The company expects a loss of 12 cents a share, in line with the analyst estimate.

CVS Corp (CVS: chart), drugstore and pharmacy chain, reported that Q3 net profit advanced 37% to 30 cents a share from the year-ago period on 13.4% revenue growth, matching analysts’ forecasts.

Harrah’s Entertainment (HET: chart), casino operator, posted Q3 earnings of 91 cents a share, down vs. $1.07 a share in the same period last year despite revenue growth. Excluding non-recurring items, the company would have earned $1.01 a share, beating analyst estimate of 99 cents a share.

R.R. Donnelley & Sons Co (RRD: chart), printer, announced that Q3 net profit from continuing operations advanced 15% to 62 cents a share, compared with the year-ago period on 15% revenue growth. The company raised its guidance for fiscal-year operating earnings from continuing operations by 4 cents to $2.21 a share.

Sara Lee (SLE: chart), consumer products maker, posted Q1 earnings of 9 cents a share, down from 44 cents a share in the same period a year earlier on revenue decline, missing analyst expectations of 27 cents a share. If not for non-recurring items, the company would have earned 34 cents a share. For its Q2 the company expects earnings of 25 to 30 cents a share, down from analyst expectations of 32 cents.

Tesoro Petroleum (TSO: chart), petroleum products producer, posted Q3 earnings of $3.20 a share, up from 93 cents a share in the year-ago period, topping analyst estimate for a profit of $3.17 a share. Q3 results include a charge of 8 cents a share, related to insurance premium surcharges. The company announced that it has approved the buyback of up to $200 million worth of common stock.

Sabre Holdings (TSG: chart), travel services company, posted Q3 earnings of 45 cents a share, down from 49 cents a share in the year-ago period despite revenue growth. If not for non-recurring items, the company would have earned 50 cents a share, topping analyst estimate of 47 cents a share. The company also expects adjusted fourth-quarter earnings of 16 to 19 cents a share, below analyst estimate of 22 cents a share.