U.S. MARKET AVERAGES

Drop in Oil and Bond yields near three-year high.

Traders sold energy stocks as prices of crude oil, gasoline and natural gas fell. On a third day in a row energy stocks suffered the sell-off followed a decline in oil below $60 per barrel. Consumer discretionary and transportation sector stock, benefiting from the falling price, rose in the session.

With the news on Guidant and Johnson & Johnson $25 billion deal in trouble and heading for the court, market sold stocks of Guidant (GDT) and J&J (JNJ). Guidant declined 4.6% and Johnson & Johnson lost 1.4% in the session’s trading.

Texas Utility (TXU) announced the two for one split and confirmed the earnings guidance for the fiscal 2005.

Bond yields on ten-year bonds are below 4.67% reached on Friday, and closed at 4.63%. However, the trend for the higher yield has not been broken.


MOVERS AND SHAKERS

The software giant Microsoft (MSFT) has appeared to be the main participant in the talks about the possible sale of a stake in America Online, a Time Warner (TWX) unit, according to The New York Times. Microsoft’s stock added 0.2% and Time Warner’s stock was up 0.6%.

Tivo (TIVO) and Yahoo (YHOO) plan to make an agreement that will connect Yahoo''s online service to TiVo''s set-top boxes, according to The New York Times. Tivo’s stock jumped 13% and Yahoo’s stock gained almost 1%.

The search engine Google (GOOG) is modifying some of its internet services for use on wireless devices. Starting today users of more than 100 types of cell phones can access Google''s map database, according to a Wall Street Journal report. The company’s shares were up about 4%.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks fell across the region on consolidation of last-week gains. The Nikkei declined 0.1% but still held above 14,000 on cautious trading. Among the other regional markets, Hong Kong’s Hang Seng was the biggest loser, down 1.5%, followed by Singapore’s Straits Times, falling by 0.6%, and South Korea’s Kospi, down 0.3%. China’s Shanghai Composite slightly advanced on a tentative agreement between China and U.S, while the Indian market rose 1.7%.

European markets closed in the green on deal talk, stronger dollar and falling oil prices. The German DAX 30 added 0.6%, London’s FTSE 100 advanced 0.7%, and the French CAC 40 added only 0.1% as gains were limited by oil major Total and insurance stocks. The euro fell to an 18-month low below $1.18.

OIL, METALS, CURRENCIES

Crude oil prices slid below $59 a barrel on unusually warm weather and easing worries about the winter season heating fuel demand. Light sweet crude December delivery fell to $58.60 a barrel. Heating oil lost 4 cents to $1.755 a gallon. Gasoline fell 7 cents to trade at $1.542. Natural gas dropped 2%, or nearly 24 cents to $11.18 per 1,000 cubic feet.

Gold traded higher in Europe. In London the precious metal closed at $456.85 per troy ounce, up from $456. In Zurich gold rose to $457.65 from $455.85. In Hong Kong gold fell $4 to close at $457.45. Silver closed at $7.46, down from $7.49.

The U.S. dollar strengthened against most of its major counterparts. The euro was quoted at $1.1792, down from $1.1821. The dollar bought 117.83 yen, down from 118.24. The British pound traded at $1.7433, down from $1.7510.

EARNINGS NEWS

Radica Games (RADA), video-game maker, announced that Q3 net profit soared 67% to 51 cents a share from the year-ago period. Sales climbed 30% on continued strength in the electronic games category.

U.S. Concrete, Inc. (RMX), concrete and related products producer, reported that Q3 net profit advanced 13% to 31 cents a share from the year-ago quarter. Sales climbed 16.2% on higher ready-mix concrete prices and sales volumes. The company expects Q4 earnings in the range of 6 cents to 11 cents a share.