Day’s events were driven by housing starts, unemployment claims, oil inventory report and strong rally in housing and mining stocks. On earnings front Goldman Sachs had its first decline in quarterly earnings in three years but Yum Brands, Clorox, and Potash had earnings and backed the guidance for the year.

HOUSING STARTS AND BUILDING PERMIT REPORT

The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for May 2005.

Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 2,050,000. This is 4.6 percent below the revised April rate of 2,148,000 and is 3.7 percent below the May 2004 estimate of 2,129,000.

Single-family authorizations in May were at a rate of 1,619,000; this is 1.3 percent below the April figure of 1,640,000. Authorizations of units in buildings with five units or more were at a rate of 348,000 in May.

Privately-owned housing starts in May were at a seasonally adjusted annual rate of 2,009,000. This is 0.2 percent above the revised April estimate of 2,005,000 and is 1.8 percent above the May 2004 rate of 1,974,000.

Single-family housing starts in May 2005 were at a rate of 1,704,000; this is 4.7 percent above the April figure of 1,627,000. The May rate for units in buildings with five units or more was 266,000.

Privately-owned housing completions in May were at a seasonally adjusted annual rate of 2,071,000. This is 6.9 percent above the revised April estimate of 1,937,000 and is 8.5 percent above the May 2004 rate of 1,909,000.

Single-family housing completions in May 2005 were at a rate of 1,699,000; this is 4.9 percent above the April figure of 1,619,000. The May rate for units in buildings with five units or more was 318,000.


UNEMPLYOMENT CLAIMS REPORT

In the week ending June 11, the advance figure for seasonally adjusted initial claims was 333,000, an increase of 1,000 from the previous week's revised figure of 332,000. The 4-week moving average was 335,000, an increase of 2,750 from the previous week's revised average of 332,250.

The advance seasonally adjusted insured unemployment rate was 2.1 percent for the week ending June 4, an increase of 0.1 percentage point from the prior week's unrevised rate of 2.0 percent.

The advance number for seasonally adjusted insured unemployment during the week ending June 4 was 2,641,000, an increase of 58,000 from the preceding week's revised level of 2,583,000. The 4-week moving average was 2,596,500, an increase of 11,250 from the preceding week's revised average of 2,585,250.

ENERGY REPORT

Summary of Weekly Petroleum Data as reported by EIA for the Week Ending June 10, 2005

U.S. crude oil refinery inputs averaged over 16.3 million barrels per day during the week ending June 10, up 281,000 barrels per day from the previous week's average. Refineries operated at 96.7 percent of their operable capacity last week. Although refinery inputs increased significantly, gasoline production declined last week, averaging nearly 9.0 million barrels per day. However, distillate fuel production increased substantially, averaging 4.4 million barrels per day, the largest weekly average ever.

U.S. crude oil imports averaged over 10.6 million barrels per day last week, up 397,000 barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged nearly 10.5 million barrels per day, which is 80,000 barrels per day more than averaged over the comparable four weeks last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged over 1.0 million barrels per day, while distillate fuel imports averaged 296,000 barrels per day.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) fell by 1.8 million barrels from the previous week. At 329.0 million barrels, U.S. crude oil inventories remain well above the upper end of the average range for this time of year. Total motor gasoline inventories declined by 0.9 million barrels last week, putting them in the upper half of the average range. Distillate fuel inventories climbed by 2.5 million barrels last week, but remain in the lower half of the average range for this time of year.

Increases were seen in both high-sulfur distillate fuel (heating oil) and low-sulfur distillate fuel (diesel fuel) inventories. Total commercial petroleum inventories rose by 2.8 million barrels last week, putting them above 1 billion barrels for the first time since the week ending September 20, 2002.

Total product supplied over the last four-week period has averaged nearly 20.7 million barrels per day, or 2.0 percent more than averaged over the same period last year. Over the last four weeks, motor gasoline demand has averaged nearly 9.5 million barrels per day, or 3.0 percent above the same period last year, while distillate fuel demand has averaged 4.1 million barrels per day, or 6.5 percent above the same period last year. Kerosene-type jet fuel demand is up 4.6 percent over the last four weeks compared to the same four-week period last year.