U.S. MARKET AVERAGES

U.S. stock futures predict a higher opening ahead of oil inventory report and earnings releases from major oil companies, expected to post solid gains on the back of record-high prices. U.S. light sweet crude slightly declined, hovering near $62 a barrel. The report is expected to show distillate stocks fell by 800,000 barrels last week but crude stockpiles are forecast to have risen 1.9 million barrels.

S&P 500 futures were up 3.6 points, above their fair value. Dow Jones industrial average futures were up 26 points, while Nasdaq 100 futures gained 5 points.

Technology and retail stocks are expected to trade down as online retailer Amazon.com Inc. (AMZN: chart) posted a lower quarterly profit and forecast sales below some Wall Street expectations.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks ended mixed with the Nikkei rising 0.9% on the back of strong resource-related stocks like JG Corp. and Chyoda Corp. Among the other regional markets, Australia’s All Ordinaries climbed 1.1%, Hong Hong’s Hang Seng closed flat, while South Korea’s Kospi declined 0.2%.

European markets traded higher at mid-day dealings on higher commodity prices, which gave a boost to miners like Rio Tinto and oil company BP, as well as on upbeat forecast from DaimlerCrysler. The German DAX 30 gained 0.6%, the French CAC 40 added 0.6%, and London’s FTSE 100 rose 0.8%.

ENERGY, METALS, CURRENCIES

Crude oil futures slightly declined, though still hovering round $62 a barrel ahead of winter season and oil inventory report. Light sweet crude December contract fell 56 cents to $61.88 a barrel on the Nymex. Heating oil traded at $1.8871 a gallon. Gasoline lost nearly 2 cents to $1.6380. Natural gas fell 14 cents to $14.20 per 1,000 cubic feet. London Brent dropped 54 cents to $59.70.

Gold prices lost ground in European trading. In London gold traded at the recommended price of $471.55 per troy ounce, down from $471.85. In Zurich it fell to $471.35, down from $472.35. In Hong Kong the precious metal rose $5.30 to close at $472.35. Silver opened at $7.80, up from $7.78.

In European trading the U.S. dollar climbed against its major counterparts. The euro was quoted at $1.2065, down from $1.2096. The dollar changed hands at 115.42 yen, up from 114.88. The British pound was trading at $1.7770, down from $1.7844.

EARNINGS NEWS

Boeing Co. (BA: chart), plane maker and aerospace company, posted Q3 net income of $1.26 a share, up from 56 cents a share in the same period last year despite revenue decline, beating analysts’ forecasts of 80 cents a share. The company announced the earnings incorporated a 62 cents a share tax benefit and that a strike by its machinists cut down results by 25 cents to 30 cents a share and led to 21 fewer plane deliveries.

Kerr-McGee Corp. (KMG: chart), oil and gas company, posted Q3 net income of $3.09 a share, up from 5 cents a share in the year-ago period on higher sales of oil and natural gas, beating analyst estimate of $2.64 a share. Excluding results from discontinued operations in the North Sea and elsewhere, earnings totaled $2.53 a share, up vs. 95 cents. Revenue advanced slightly to $1.208 billion from $1.202 billion.

Amerada Hess Corp. (AHS: chart) oil and gas exploration company, reported Q3 net income of $2.60 a share, up vs. $1.74 a share in the year-earlier period on revenue growth, missing analyst estimate of $3.31 a share. The company added that hurricane activity in the Gulf of Mexico reduced Q3 exploration and production earnings by around $25 million, and generated exceptional costs of $14 million, after tax.

WellPoint Inc. (WLP: chart), health insurer, announced net income advanced to $1.02 per share, up from 85 cents per share in the same period last year, beating analyst estimate, excluding special items, by a penny.

Sprint Nextel Corp. (S: chart), communication products and solutions provider, posted Q3 earnings of 23 cents a share, up from a loss of$1.32 a sharein the year-ago period on 35% revenue growth, on a consolidated basis. On an adjusted basis, if not for certain items, the company gained 29 cents a share, topping its year-ago equivalent profit of 25 cents a share. On a pro forma basis, the company posted adjusted earnings of 25 cents a share.

Cardinal Health Inc. (CAH: chart), health care industry company, posted Q3 net income of 53 cents a share, up from 49 cents a share in the same period last year on 9% revenue growth, missing analyst estimate of 72 cents a share. Earnings from continuing operations came in at 54 cents a share, up vs. 51 cents a share.

Air Products(APD: chart), gases, chemicals and equipment company, reported Q4 net income of 79 cents a share, up from 73 cents a share in the year-ago period on 5% revenue growth and improved pricing and energy costs pass-throughs, topping analysts’ expectations of 77 cents a share. The company added the impact of recent hurricanes cut earnings by 6 cents a share.

Starwood Hotels & Resorts Worldwide (HOT: chart), hotel chain, announced that Q3 net profit dropped 64% compared with the year-ago period to 17 cents a share despite 11.9% revenue growth. Excluding a tax expense on repatriating earnings and a tax expense related to its 1998 sale of ITT World Directories, earnings would have been 58 cents a share, topping analyst estimate of 52 cents a share. Same-store revenue per available room rose 13.2% in North America and 11.9% worldwide, the company stated. Starwood is looking for EPS before items of $2.27 for 2005 and $2.70 in 2006, with $6 billion in 2005 revenue.

Pixar Inc. (PX: chart), specialty gases and surface coatings manufacturer, posted Q3 net income of 33 cents a share, down from 53 cents in the same period last year. Earnings for Q3 incorporated a charge of 28 cents a share, largely related to Praxair's plan to repatriate $1.1 billion of foreign profits under the federal Jobs Creation Act of 2004. Adjusted earnings per share of 61 cents a share were in line with analysts’ forecasts of 60 cents. The company announced that hurricanes Katrina and Rita reduced earnings by about 3 cents a share. Sales in Q3 totaled $1.89 billion, up 13% from the prior year's $1.67 billion.