EARNINGS

Goldman Sachs reported 2Q earnings of $1.71 vs. $2.30 a year ago on 13% lower revenue missing the estimates of $1.71. This was the first quarterly earnings decline in three years. Trades related to correlation bets and GM bonds were partly blamed by the market observers to woes of earnings at Goldman. Recently Morgan Stanley, Bear Stearns and Lehman Brothers reports have shown weaker underwriting revenues. The stock jumped up 3.6%.

Winnebago Industries, motor home & RV manufacturer, posted 3Q profit decrease of 52 cents per share vs. 51 cents for the prior-year period which included charge of13 cents a share beating expectations of 49 cents a share. The results are due to poor sales and reduced production.

Actuant, industrial company, announced record 3Q earnings of 68 cents per share compared with 29 cents last year on early disposal of debt. Net sales reached record increase of 34%.

Progress Software, infrastructure software supplier, posted 2Q 43% increase in earnings of 30 cents a share compared with 21 cents a year earlier. During the quarter the company repurchased about 10, 000 shares of its stock for $0.3 million.

J.M Smucker, food maker, reported 4Q net income of 38 cents a share down from 44 cents a year ago with a loss of 7 cents per share of discontinued operations included. Net income for 2005 was $2.24 vs. $2.21 last year.

Entegris, materials integrity manager, reported 3Q net income of 9 cents per share vs. 12 cents a year ago exceeding analysts’ expectations of earnings between 7 and 8 cents a share. For the fourth quarter the company predicts flat sales and earnings in the range of 4/5 cents a share.

METALS AND OIL MARKET

Crude oil up $1.01 cents and closed at $56.58 per barrel along with oil gasoline, heating oil and natural gas traded up. Traders are concerned of the decline in heating oil inventory.

Metals markets in the day’s trading showed sizable gains in copper, silver and gold metals. Gold closed up by $7 to $437.90, silver is up 4 cents to $7.37 and copper is up 2.05 cents to $1.5695.

In London trading, mining and energy stocks traded higher on ABN Amro upgrading BHP to Buy. Shares of Corus, BHP, Rio Tinto and Chilean copper miner Antofagasta traded by better than 2%. Mining stocks in NY trading have been higher as well with Phelps Dodge leading the rally and up by 2.6%.

INTERNATIONAL MARKETS

Asian-Pacific stocks closed mostly higher boosted by gains in commodity shares together with crude oil and metals futures. Japanese averages ended almost flat reflecting losses from exporter issues. China’s Shanghai Composite index rose 1.2%, Taiwan’s Taiex was up 0.5% and South Korea’s Kospi ended up 0.1%. The greenback traded higher at 109.31 yen compared with 109.21 yen in late Wednesday trading.

Markets in Europe closed up due to gains in resource stocks, strong metals and oil futures after an upgrade of BHP Billiton and BP PLC. Germany’s DAX 30 ended 0.7% up, France’s CAC 40 was up 0.02% and London’s FTSE 100 rose 0.5%. The euro declined 0.2% to $1.2083.

IN OTHER NEWS

Airbus received commitment for 100 planes from a start-up Indian discount carrier based in New Delhi. India has seen a string of new airlines focused on domestic air travel market with its government deregulating air travel. India has recently signed open skies agreements with the U.S. and other countries including Singapore.

Latin American markets rallied with Brazil in the lead with 1.15% gains followed by Chile 0.79%, Mexico 0.23% and Argentina 0.10%.

German utility company E.On said that it has agreed to sell Ruhrgas Industries to a private equity firm CVC Capital Partners for $1.8 billion. The company expects to book a gain of euro 600 million and expect to complete the deal by August of this year.

Pfizer has agreed to buy pharmaceutical company Vicuron, bacterial and fungal infection drug developer, for $1.9 billion. Drugs from Vicuron may be on the market in less than three months. The stock jumped 74% on Nasdaq to $27.85.

EU continues to play hard ball with developing countries on farms subsidy. In the latest round of salvo, EU trade chief said that advanced developing countries China, Brazil and India must open up markets for European industrial goods before EU will relax farm subsidies. EU farmers now less than 10 million mostly in France are creating havoc in global farm trade hurting more than one billion farmers in China, India and Brazil.