U.S. AVERAGES

The weakness in tech stocks, larger than anticipated U.S. trade deficit and rising oil prices led investors to sell stocks during the session. The sell-off was also exacerbated by the fall in dollar against major currencies in Europe and Asia. Gold trades up 40 cents to $448.20 per ounce.

Latest read on consumer confidence showed declined from 96.5 in June, its best level, to 92.7 according to a survey from University of Michigan.

Last night Dell met 2Q earnings of 38 cents estimates but missed the revenue $13.4 billion fell short of estimates of $13.7 billion. The stocks at is trading 9%. Cree research reported 4Q profit of 27 cents vs. 28 cents a year ago on 9% rise in revenue.

Apple Computer shares jump 4.8% on no news and Nvidia rise 6% on earnings of 41 cents vs. 3 cents a year ago.

Airlines shares continue to slide as oil trades near new peak. The shares of AMR Corp are down 20 cents and Delta Air are down 10 cents. Verizon shares are trading close to its 52-week low.

British Airways has halted all flights from London as some of its staff has joined a dispute between Gate Gourmet, its caterer and its workforce. Approximately 70,000 people reportedly have been stranded at the Heathrow Airport. The company expects the flight disorganization to continue for days even though more than half the striking staff has returned to work.

INTERNATIONAL MARKET NEWS

Asian-Pacific markets finished mixed with the Japanese Nikkei flat on disappointing quarterly economic growth of 0.3%, erasing early gains by stocks sensitive to domestic economy as well as by energy-related issues on the back of record-high oil prices. The regional markets gained mainly on energy and mining stocks. Hong Kong’s Hang Seng added 0.04%, South Korea’s Kospi rose 0.6%, while Shanghai Composite declined 1.3%.

European stocks fell across the region on oil prices surging to $67 a barrel, disappointing French GDP data, strike disruption at British Airways, and caution in the tech sector. The German DAX 30 slipped 0.34%, the French CAC 40 lost 0.72%, and the U.K.’s FTSE 100 declined 0.24%.

ENERGY, METALS AND CURRENCIES MARKETS

Oil prices surged to new record highs, reaching almost $67a barrel on capacity worries to refine and pump oil. Light crude advanced $1.06 to $66.88 after soaring to an all-time high of $66.95 and London Brent was $1.08 to $66.46. The October, November and December deliveries of crude oil futures are trading fifty cents to a dollar higher.

Gold advanced for the third consecutive session on weakening dollar and soaring crude-oil prices. In London gold traded at $446.10 per ounce, up from $441.55. In Hong Kong gold climbed $10.20 to close at $448.55. Silver trade unchanged at $7.09 per ounce.

Copper for September delivery gained 2.2 cents to $1.669 a pound.

The U.S. dollar was mixed against other major currencies on U.S. trade data. In mid-day NY trading the euro was quoted at $1.2431. The dollar bought 109.46 yen. The pound was quoted at $1.8157.

EARNINGS NEWS

Movie Gallery (MOVI: chart), retail home video provider, posted a loss of 39 cents a share, down vs. profit of 32 cents a share for the second quarter last year on strong revenue growth, missing analysts’ expectations of earnings of 51 cents a share.

Nvidia Corp. (NVDA: chart), graphic and digital media processor company, reported 2Q net income of 41 cents a share vs. 3 cents a share, a year ago, beating analysts’ estimate of 34 cents. Revenue rose to $574.8 million vs. $456.1 million last year, while analysts had expected $585 million. FMR Corp, parent of Fidelity family of mutual funds, reported that it has 11.5% stake in the company.

Cree Inc. (CREE: chart) 4Q earnings remained flat despite a 9% rise in revenue. For 4Q the company posted earnings of 27 cents a share vs. 28 cents last year. Analysts were expecting earnings of 27 cents a share. The company also forecast earnings and revenue for 1Q below analysts' estimates.

U-Store-It Trust, self-storage facilities developer, posted 2Q net income of 6 cents a share on slightly lower-than expected growth in revenue, missing analyst estimate by a penny. Same-store revenue rose 6.8%.