INTERNATIONAL MARKET NEWS

Asian benchmarks closed lower with the Japanese Nikkei down 0.8% ahead of political uncertainty, retreating from a 15-month high on profit-taking in automakers, banks and select blue-chip stocks. The other regional markets followed the suit as Hong Kong’s Hang Seng lost 0.1%, South Korea’s Kospi dropped 0.5%, and Taiwan’s Straits Times was down 0.2%. In Tokyo the dollar was trading at 111.17 yen.

European markets traded lower at mid-day ahead of an unexpected interest rate cut from the Bank of England and bank stocks down after earnings reports from France’s Societe Generale and Royal Bank of Scotland. Oil shares also erased some of their recent gains after an overnight decline of oil prices below $61 a barrel. The German DAX 30 was flat, the French CAC 40 lost 0.3%, and London’s FTSE slipped 0.1%.

ENERGY, METALS AND CURRENCIES MARKETS

Oil prices held firm positions above $61 a barrel after an unexpected increase in U.S. crude stockpiles triggered a steep sell off from record highs. Light sweet crude for September delivery gained 40 cents to $61.26 a barrel. London Brent rose 45 cents to trade at $60.10.

Gold futures reached $445 per ounce, extending a rally for the fifth consecutive session on unstable dollar and other factors which have an impact on the demand for the precious metal. Gold for December delivery traded as high as $444.70 per ounce on the NYME. It last traded at $443.70.

Crude-oil futures edged up after an overnight oil prices decline, despite positive U.S. inventory data, as traders remain cautious because of possible supply concerns, caused by refinery shutdowns and an approaching hurricane season. Light sweet crude for September delivery rose 17 cents to trade at $61.03 a barrel on the NYME. London Brent September delivery gained 13 cents to reach $59.78.

Gold futures rose in early European trading. In midmorning trading in London traders fixed a recommended price of $435.60 bid per troy ounce, up from $434.60. In Hong Kong gold gained $3.10 to close at $436.35. Silver opened at $7.25, down from $7.26.

The U.S. dollar was mixed in early European trading. The euro quoted at $1.2310, down from $1.2311. The greenback bought 111.38 yen, up from 111.14. The British pound stood at $1.7759, down from $1.7794.

EARNINGS NEWS

Family Dollar Stores, retailer, posted 1.6% comparable-store sales drop for July, but 5.7% increase in total sales to $418.8 million. The company expects flat 4Q same-store sales and lower earnings of 17 to 25 cents a share.

Central European Media Enterprises, reported 2Q three-fold higher net income, or 72 cents a share vs. 21 cents a year ago on revenue growth of 152%.

Dollar General, discount retailer, reported 2Q same-store sales rose 3.9% on strong food sales, pet supplies and paper products with total sales increase of 13% to $617.1 million.

BJ's Wholesale Club, warehouse clubs operator, said its same-store sales rose 4.7% in July, together with a 9.3% rise in total sales to $582.3 million on strong gasoline sales.

Cadmus Communications, integrated graphic communication services provider, posted 4Q net income of 13 cents a share against a loss of 22 cents a share in the year-ago period on growth in sales.

Revlon, cosmetics and skin care manufacturer, posted a 2Q loss of 10 cents a share, vs. a loss of 11 cents a share in the year-ago period, despite slight revenue growth compared with last year, but missing analysts' estimate by a penny.

Tesoro, petroleum products and marine logistics services provider, posted a decline in 2Q net income of $2.62 a share, down from. $3.11 a share in the same period last year on higher expenses, beating expectations of $2.48 a share.

Huntsman, chemical company, posted earnings of 73 cents a share, up from a loss of 29 cents a share from the same period last year on revenue growth, missing forecasts of 82 cents a share.

Talbots, apparel retailer, posted 2Q 12% sales growth of $449.6 million and 6.7% same-store sales increase. The company raised its quarterly earnings to the range of 33 to 34 cents a share, up from 28 to 32 cents.

Chico’s FAS, specialty retailer, reported 15.7% same-store sales rise. The company projected 2Q earnings between 26 and 27 cents a share.