U.S. MARKET AVERAGES

U.S. averages are trading mixed, although oil prices took the downward direction falling $1.67 to $67.80 a barrel. The decrease took place after the Bush administration announced it will release up to 2 million barrels a day of crude and refined gasoline to offset the fuel shortage. Japan and the EU members are also considering oil release from their reserves. These measures come as a result of the devastating impact of Hurricane Katrina which destroyed 90% of the oil production in the Gulf of Mexico.

Investors also take into account the employment report, released by the Labor Dept. It indicated that non-farm payroll figures for August rose by 169,000, slightly down vs. the expected rise of 190,000. The jobless rate was reported to be the lowest in four years, at 4.9% compared with previous expectations of 5%

The payroll data show that the labor market continued gaining speed but Friday’s figures don’t reflect Katrina’s impact. According to economists the economic picture ahead is not painted in bright colors as energy costs are seen as a serious hindrance to economic growth.

ECONOMIC NEWS

The Labor Dept. reported unemployment rate of 4.9% for July which is the lowest level of unemployment since August 2001. Economists had expected unemployment rate to be 5%.

The Labor Department released the August employment report according to which U.S. companies provided 169,000 jobs, slightly down vs. expectations of 190,000. The increase in monthly employment figures represent increased employment in construction, profession and business services, healthcare and education, financial services. Manufacturing employment continued to decrease for the third month in succession.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mostly higher after mixed early trading. The Nikkei rose 0.74% on optimism about the Japanese economy and hopes that the U.S. Fed Reserve will slow the pace of interest-rate hikes. Blue chips and exporters were among the leading gainers together with automakers which rose on strong monthly sales reports. Across the region Hong Kong’s Hang Seng added 0.5% and South Korea’s Kospi gained 0.3%. The dollar stood at 109.85 against the yen.

European markets closed largely down, though off session lows on positive U.S. jobs report and M&A speculations across the region. The German DAX 30 fell 0.11%, the French CAC 40 was down 0.43%, and London’s FTSE declined 0.03%.

ENERGY, METALS AND CURRENCIES MARKETS

Oil prices tumbled by nearly $2 on oil support from the U.S. and European reserves. Light sweet crude dropped $1.87 to $67.60 a barrel. London Brent shed $1.62 to $66.10.

Gold declined in European trading. In London the precious metal closed at $443.70 per ounce, down from $444.20. In Hong Kong gold climbed $11.10 to close at $447.05. Silver traded at $6.99, up from $6.96.

The U.S. dollar fell against most of its major counterparts in European trading. The euro was quoted at $1.2517, up from $1.2487. The dollar bought 109.72 yen, down vs. 109.88. The British pound closed at $1.8404, up from $1.8326.

EARNINGS NEWS

H&R Block, consulting services company, posted a 1Q net loss of 9 cents a share, up vs. 11 cents a share for the same period last year on revenue growth to $615 million from $486.6 million in the year-ago period.

CSK Auto, auto parts supplier, posted 2Q net earnings 29 cents a share, down 14.5% vs. 33 cents a share in the same period last year despite revenue growth to $419 million from $409.1 million the year-ago, but missing analysts’ expectations of $424 million. Same-store sales advanced 1.1% from last year.

JDS Uniphase telecommunications service provider, posted 4Q loss reached 10 cents a share, sharply down from a loss 2 cents a share in the year-ago period on revenue decline, missing analyst estimate of 2 cents a share. Apart from onetime restructuring and other costs, JDS announced it lost 2 cents a share.

Kellwood, apparel maker, posted a 2Q net loss of $2.86 a share, down vs. a profit of 36 cents a share in the same period a year earlier despite revenue growh, missing analysts’ expectations of 19 cents a share profit. Impairment, restructuring and related non-recurring charges of $3.36 a share are included in the current quarterly results.

Finisar Corp., optical equipment maker, posted 1Q net loss of 7 cents a share, up from a loss 10 cents a share in the year-ago period on 32% revenue growth. The company’s proforma loss amounted to 3 cents a share.

Plato Learning, educational software provider, posted a 3Q net loss of a penny a share, down vs. A profit of 29 cents a share in the year-ago period on revenue decline, beating analyst estimate of 11 cents a share.