U.S. MARKET AVERAGES

Toll Bros. took its toll on the market.

Trading in the market for the last several sessions is dominated by the fears of inflation, volatile oil prices and worries related to heath of the construction industry. Today was no different.

Volatile crude after spending much of the day on the downside managed a light bounce at the close. Weather related trading drove oil below $60 for much of the session only to find traders not to sell more. Traders feared that fall of oil of 16% from the summer peak and 14% in one month may have been enough for now. However, nowadays with no one is sure with the direction of price per barrel.

Bond yields were lower today. The 10-year yield is down about 7.4 basis points to 4.567%, reversing its gains of late last week.

U.S. stocks dropped on Tuesday as a disappointing outlook from leading home builder Toll Brothers Inc. raised concerns that the housing sector may be slowing. Shares of Toll Brothers plunged 13.96% after the luxury home builder posted record fourth-quarter revenue, but projected lower deliveries and earnings for the following year. The slide in Toll Brothers' shares sent the Dow Jones U.S. Home Construction Index down 6.1%. Shares of another large home builder, Hovnanian Enterprises Inc. fell 7.05%.

The housing sector continues to be the most notable decliner, mainly due to the warning released by Toll Brothers. Retail and gaming stocks also continue to post considerable losses. Networking, insurance and bank stocks are showing modest losses as well.

Bitstream (BITS) is among the best performers, rising 34% on a quarterly report, showing a profit versus a loss last-year same period

Riviera Holdings (RIV) is among the day's worst performers, down 20% after it revealed its third-quarter results and said it has concluded the formal process of exploring strategic alternatives, without announcing any transaction.


MOVERS AND SHAKERS
Investor Icahn revealed that he and affiliates control 9.3% of Fairmont Hotels & Resorts (FHR). Icahn urged Fairmont to seek strategic options, including a sale of the company or some of its hotels and other assets, declaration of a dividend, or execution of a stock buyback. Fairmont gained 3.5%.

Toll Brothers (TOL) lowered its forecast for homes to be delivered in 2006, pointing a harder regulatory environment, community-opening delays and softening demand in some markets. The company’s stock dropped almost 11%. It was less than 60 days ago when several insiders sold a major chunk of their holding.

The aluminum producer Alcan (AL) reported a decrease in third-quarter net income, because of seasonal lull and the loss of some product categories due to the spinoff of its ex-unit Novellis (NVL). Alcan’s stock dropped 0.3%.

The fast food retailer McDonald's (MCD) announced its worldwide same-store sales increased 3.4% in October, with U.S. same-store sales achieved a 3% growth. McDonald's stock is likely to gain today.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mixed with the Nikkei falling 0.2% on declining oil prices which sent oil companies lower and on banking shares sell-off. Awaited economic data later in the week also weighed on sentiment. Among the regional gainers, Hong Kong’s Hang Seng rose 0.3%, South Korea’s Kospi gained 0.7%, and Australia’s All Ordinaries climbed 0.9%.

European markets closed largely flat as gains from auto and mining stocks, accompanied by solid earnings were offset by losses in chemical and utility stocks. Lower start of U.S. equity markets also weighed on sentiment. The German DAX 30 lost 0.3%, the French CAC 40 ended flat%, followed by London’s FTSE 100 which also closed flat.

OIL, METALS, CURRENCIES

Crude oil prices further declined on warmer, reducing heating fuel demand and on expectations of another inventories increase but closed higher. Light sweet crude December delivery rose 24 cents to $59.71 a barrel on the Nymex. Heating oil lost a penny to trade at $1.7785 a gallon. Gasoline slightly fell to $1.562. Natural gas lost 8 cents to $11.79 per 1,000 cubic feet. London Brent lost 22 cents to $57.82.

Gold advanced in European trading. In London the precious metal closed at $461.30 per troy ounce, up from $456.50. In Zurich gold rose to $460.30 from $457.65. In Hong Kong gold fell $0.10 to close at $457.35. Silver closed at $7.62, up from $7.46.

The U.S. dollar traded higher against the euro and pound but down versus the yen. The euro was quoted at $1.1762, down from $1.1793. The dollar bought 117.27 yen, down from 117.62. The British pound traded at $1.7403, down from $1.7434.