The May preliminary estimate was revised upward $0.1 billion. June sales of durable goods increased 0.3 percent from last month and were up 6.4 percent from a year ago. June sales of nondurable goods increased 0.8 percent from last month and were up 9.2 percent from last year. Sales of petroleum and petroleum products increased 3.5 percent from last month and sales of drugs and druggists’ sundries increased 2.1 percent.

Inventories

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $353.1 billion at the end of June, up 0.7 percent from last month and were up 10.2 percent from a year ago.

The May preliminary estimate was revised upward $0.6 billion or 0.2 percent. End-of-month inventories of durable goods increased 0.9 percent from May and were up 11.6 percent from last June.

Inventories of motor vehicle and motor vehicle parts and supplies increased 3.1 percent and inventories of machinery, equipment, and supplies were up 1.5 percent. End-of-month inventories of nondurable goods increased 0.3 percent from May and were up 8.0 percent compared to last June.

Inventories of drugs and druggists’ sundries decreased 0.8 percent from last month.

Inventories/Sales Ratio

The June inventories/sales ratio for merchant wholesalers, except manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.19. The June 2004 ratio was 1.16.


INTERNATIONAL MARKET NEWS

European markets closed up on strong resource stocks and U.S. markets gains, made on retreating oil prices and positive Labor Department data. Stocks were also supported by drug maker Elan, which advanced on news for its Tysabri drug. The German DAX 30 gained 1.5%, the French CAC 40 rose 1.1%, and London’s FTSE 100 climbed 0.2%.

Asian-Pacific markets ended mostly higher on regional oil and energy stock gains after the markets shrugged off record-high crude-oil prices of nearly $64 a barrel. The Nikkei advanced 1%, boosted by better-than-anticipated economic data. Among the gainers in the regional markets, South Korea’s Kospi added 1.2% and China’s Shanghai Composite rose 1.2%. Stocks in Hong Kong declined 0.4%; markets in Singapore were closed for a national holiday.

ENERGY, METALS AND CURRENCIES MARKETS

Crude-oil retreated from a record price-level on security concerns in Saudi Arabia and Middle East tensions. Light sweet crude for September delivery declined 28 cents to $63.66 a barrel. London Brent slipped 29 cents to trade at $62.41.

Gold futures declined in European trading, while the dollar climbed. In London gold closed at $433.35 per troy ounce, down from $435.65. In Hong Kong gold fell $2.30 to close at $435.75 per ounce. Silver closed at $6.96, down from $7.06.

The U.S. dollar advanced against other major currencies. At mid-day New York trading the euro was quoted at $1.2348. The greenback bought 111.99 yen. The British pound stood at $1.7841.

EARNINGS NEWS

KPN, Dutch telecommunications operator, said 2Q net profit was down to 10 euro cents a share, from 16 euro cents a share in the year-ago period due to the amortization of third-generation UMTS licenses.

Bradford & Bingley, U.K. mortgage lender, reported that first-half pre-tax profit increased 17 pence a share, compared to the same period last year, while underlying pre-tax profit was up to 150 million pounds, beating analysts' expectations of 145.7 million pounds.

Beiersdorf, the maker of Nivea hand cream, announced that its 2Q net income increased to 87 million euros, with sales up to 1.26 billion euros. It held to 2005 sales and margin forecasts.

Scottish & Newcastle, breweries operator, reported that first-half pre-tax profit rose 6.5% on 4.5% revenue growth, matching analyst estimate. The company will lift its dividend by 2.5% to 7.04 pounds a share.