The dollar was lower against most major currencies in European trading. Gold futures rose.
The euro quoted at $1.2060, up from $1.2042, the dollar bought 111.76 yen, down from 112.22, and the British pound closed at $1.7507, down from $1.7513. Gold in London traded at $421.50 per troy ounce, up from $420.70. In Hong Kong gold rose $1.90 to close at $421.65. Silver traded $6.97 per troy ounce, down from $6.99.

Oil prices eased as OPEC released a forecast of lower global demand which balanced fears of Hurricane Emily causing damage to the oil infrastructure in the Gulf of Mexico. Light sweet crude for August delivery fell 32 cents to $57.77 a barrel in electronic trading on the NYME. London Brent dropped 39 cents to $75.22.

The euro gained against the dollar as the European Union released a report showing accelerated last-month inflation for the European region. The euro rose to $1.2060 in NY and may rise as high as $1.2255 this month, according to analysts. The greenback bought 112.09 yen.

EARNINGS NEWS

The most recent quarter ended June is traditionally pointing to the smallest year-over-year growth, but many of the early earnings reports have been positive and there haven't been many earnings warnings lately. Analysts forecast that earnings in the second-quarter advanced 8.1% compared with last year.

Private Bancorp, financial services provider, reported 2Q profit rise of 38 cents a share vs. 31 cents last year.

Orckit Communications, telecom equipment provider, reported 2Q earnings of 21 cents a share vs. a net loss of 45 cents for the comparable last-year same period.

Noble Corporation, driller, posted 2Q more-than-doubled net income of 53 cents a share compared with 26 cents last year on higher demand for offshore rigs, missing expectations of 54 cents a share.

Mattel, toy maker, reported 2Q net loss of 23 cents a share vs. a net income of 6 cents for the comparable period last year citing large tax expense related to foreign profits expatriation. The quarterly results missed estimates of income of 7 cents a share.

Hibernia, southern regional bank, reported 2Q profit growth of 50 cents a share compared with 47 cents last year on higher services charges and deposits, meeting analysts’ expectations.

Hasbro, toy maker, posted 2Q earnings rise to 13 cents per share, up from 6 cents last year on a strong performance from ‘Star War’ products, beating forecasts of 8 cents per share.

First State Bancorp, community bank, reported 2Q profit increase of 32 cents a share vs. 22 cents a year ago on higher loans and deposits, beating estimates of 29 cents a share.

First Horizon National reported 2Q lower net income of 80 cents a share vs. 92 cents a year ago on lower interest and mortgage banking income, missing expectations pf 87 cents a share.

Philips Electronics reported 2Q profit rise of 59.6% due to the sale of Navteq shares, but a 3% decline in quarterly sales. The company posted a cautious business outlook.

Eaton, diversified industrial manufacturer, posted 2Q profit rise of $1.37 a share compared with $1.03 last year, exceeding expectations of $1.32 a share. The company raised its 2005 outlook to the range of $5.20 to $5.40 a share.

Citigroup, financial institution, reported 2Q profit growth of 97 cents a share vs. 22 cents a year ago reflecting tough capital markets environment, but below estimates of $1.02 a share.

Bank of America, financial services company, reported 2Q profit growth of $1.06 a share vs. 93 cents last year on investment gains, beating expectations of $1.01 a share.

3M, diversified manufacturing company, reported 2Q higher net income of $1 a share vs. 97 cents a year ago with one-time charge included, meeting analysts’ expectations. The company expects full-year earnings between $4.10 and $4.15 a share.

Bank United Financial Corporation, parent of BankUnited FSB, reported a 3Q net loss of $14.8 million compared with a net income of $13.0 million last year due to an after-tax charge, related to prepayment of high-rate debt.

J.B.Hunt Transport Services, transportation logistics provider, posted 2Q profit of 33 cents per share vs. 27 cents a year ago, missing forecasts of 34 cents a share.