U.S. MARKET AVERAGES
On a day of earnings, stock market was market of stocks.

Morning market advance persisted the entire session and market firmed in the last trading hour as oil dropped by more than a dollar. Techs, industrial and small caps led advances during the day.

Of the major companies delivering earnings, most releases fell in two camps. In one camp companies beat the market earnings forecast and in the second camp companies met the earnings estimates but did not meet revenue guidance.

Burlington Northern, BJ Services, CSX Corp, United Technologies, Lucent Technologies, Lexmark and overnight earnings from ETrade exceeded market earnings forecast. Burlington Northern stock rose 4.4% and Lexmark rose 11.29%.

DuPont, Johnson & Johnson, and 3M failed to meet market revenue expectations.

After the close Corning Inc (GLW: chart) reported loss of 2 cents on one-time charge of 24 cents on revenue of $1.2 billion. The company stock fell 8% in the after-hours trading.

Netflix, online-movie rental company, reported earnings of 57 cents vs. 9 cents a year ago on revenue of $195 million for the fourth quarter and $688 million for the fiscal 2005, a 36% revenue growth from a year ago. The company reported churn rate of 4.0% in the fourth quarter and lower than a year ago and from previous quarter. The company ended the year with 4.179 million subscribers representing 60% growth in subscribers from a year ago. The company stock rose 16% including gains in the after-market.

MOVERS AND SHAKERS

Lexmark International (LXK: chart) said Q4 net income declined 47% to $82.3 million, or 71 cents a share, after sales dipped 11.6% to $1.37 billion, leading it to cut 825 positions and send 525 more to low-cost countries. The actions will cost $130 million pre-tax and will lead to annual savings of $80 million, including $50 million in 2006. Analysts were looking for Q4 earnings of 50 cents a share. Lexmark''s board approved an additional $1 billion stock buyback program. The stock rose 11.29%.

United Technologies (UTX: chart) reported Q4 earnings of $626 million, or 62 cents a share, up from a year-ago profit of $612 million, or 61 cents a share. Excluding charges the company would have posted earnings of $721 million, or 71 cents a share. Consolidated revenue rose 14% to $11.26 billion from $9.84 billion in the same period a year earlier. Analysts were expecting a profit of 70 cents a share on revenue of $11.1 billion. The company confirmed expectations for earnings of $3.40 to $3.55 a share in fiscal 2006 and said it plans to continue its current share repurchase rate, taking its total to about $1.5 billion for 2006. The stock gained 3.6%.

Ariba Inc. (ARBA: chart) reported Q1 net income loss of $3.7 million, or 6 cents a share, compared with a loss of $46.8 million, or 75 cents a share, a year ago. Excluding charges, the company would have reported a profit of $10.2 million, or 14 cents a share. Revenue fell 12% to $76.2 million from $86.9 million. Analysts expected earnings of 7 cents a share on revenue of $76 million. The stock jumped 24.3%.

ArvinMeritor (ARM: chart), car parts maker, reported Q1 earnings of $34 million, or 49 cents a share, up from a year-ago profit of $18 million, or 26 cents a share. On a continuing operations basis, excluding items, the company posted earnings of $11 million, or 16 cents a share with sales flat at $2.1 billion compared to last year. For 2006 the company sees earnings from continuing operations of $1.50 to $1.70 a share on sales from continuing operations of about $8.6 billion. For Q2 it forecast earnings before items of 35 to 40 cents a share on sales of $2.2 billion. The company’s shares rose 13.4%.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks recovered from last-week sharp declines, following a securities probe of the Internet portal Livedoor which sent the Nikkei and the other regional bourses in the negative. Investors recharged with positive expectations and charged back into Asian equities. South Korea’s Kospi led the gainers, surging 2.3%, followed by the Nikkei, up 1.9% at 15,648.89. Taiwan’s Weighted index advanced 1.1%, while Shanghai Composite lost 0.3%.

European stocks closed mixed with the German and French indexes supported by strong gains in the auto and chemical sectors, and the U.K.’s index dragged down by Vodafone. The German DAX 30 gained 0.3%, the French CAC 40 advanced 0.3%, while London’s FTSE 100 slipped 0.1%.

OIL, METALS, CURRENCIES

Crude oil prices eased below $68 on profit taking, despite lingering supply concerns. Light sweet crude for March delivery fell $1.04 cents to $67.06 a barrel. Heating oil edged down to $1.8439 a gallon. Gasoline declined 4 cents to $1.8070. Natural gas rose 10 cents to $8.682 per 1,000 cubic feet. London Brent declined 10 cents to $66.06.

European gold traded mixed. In London gold traded at $556.50, up from $555.70. In Zurich the precious metal traded at $556.15, down from $558.25. In Hong Kong gold rose 40 cents to close at $556.40. Silver closed at $9.13, up from $8.92. In New York gold 60 cents to $558.10 per ounce and silver inched 15.5 cents up to $9.228 per ounce.

The U.S. dollar advanced against other major currencies. The euro was quoted at $1.2278, down from $1.2305. The dollar bought 114.60 yen, up from 114.40. The British pound was quoted at $1.7856, down from $1.7870.

EARNINGS NEWS