Lynn Franco, Director of the Conference Board Consumer Research Center said, “Much of the decline in confidence over the past two months can be attributed to the recent hurricanes, pump shock and a weakening labor market.”

The report showed that the drop by the consumer confidence index came as the present situation index fell to 108.2 in October from 110.4 in September while the expectations index decreased to 69.5 in October from 72.3 last month.

Tuesday morning, the National Association of Realtors released its report on existing home sales in the month of September, showing that sales were unchanged from August, holding at the second highest pace on record.

The report showed that existing home sales came in at a seasonally adjusted annual rate of 7.28 million units in September, unchanged from a downwardly revised August rate. Economists had expected sales to slip to a 7.25 million unit rate in September compared to the 7.29 million unit rate originally reported in August.

NAR noted that an increase in sales in areas surrounding the Hurricane Katrina disaster zone helped to offset declines in other areas.


INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished higher, boosted by solid gains on Wall Street overnight and the announcement of Ben Bernanke’s nomination to succeed Alan Greenspan at the Federal Reserve. The Nikkei rose 1.3%, Hong Kong’s Hang Seng climbed 0.5%, and Australia’s All Ordinaries gained 0.8%. The only decliner across the region was South Korea’s Kospi, losing 0.3%.

European markets fell across the region erasing early gains. European stocks were pressured by disappointing earnings reports, weaker U.S. markets Tuesday, and advancing euro. The German DAX 30 lost 0.1%, the French CAC 40 fell 0.1% on sharp declines at the tire maker Michelin, and London’s FTSE closed down 0.2%, hurt by oil major BP.

ENERGY, METALS, CURRENCIES

Crude oil prices jumped back to over $62 a barrel ahead of winter season and oil inventory report later in the week. Light sweet crude December contract rose $2.12 cents to $62.44 a barrel on the Nymex. Heating oil rose 5 cents to $1.85 a gallon. Gasoline gained nearly 2 cents to $1.5985. Natural gas climbed over 6%, or 77 cents to $13.80 per 1,000 cubic feet.

Gold prices advanced in European trading as news on the new Fed Reserve Chairman pressured the U.S. dollar. In London gold closed at $471.85 per troy ounce, up from $466.20. In Zurich it climbed to $472.35, up from $466.75. In Hong Kong the precious metal rose $3.30 to close at $467.05. Silver closed at $7.78, up from $7.68.

In European trading the U.S. dollar fell against its major counterparts on news of Ben Bernanke replacing Fed Reserve Chairrman Alan Greenspan. The euro was quoted at $1.2104, up from $1.1979. The dollar changed hands at 114.68 yen, down from 115.40. The British pound was trading at $1.7857, up from $1.7675.

EARNINGS NEWS

Lockheed Martin Corp. (LMT: chart), aerospace company and defense contractor, posted Q3 earnings 96 cents a share, up from 69 cents a share in the same period a year ago on sales growth, beating analyst estimate of 90 cents a share.

Chicago Mercantile Exchange Holdings (CME: chart), stock exchange, reported that Q3 net income advanced 30% to $1.72 a share on revenue growth, including securities lending interest expenses up 22%. Average daily volumes totaled 4.2 million contracts in Q3, up 30%, on considerable volume growth on foreign exchange, interest rate and equity products.

DuPont (DD: chart), chemical producer, reversed to a Q3 net loss of 9 cents a share, down vs. a profit of 33 cents a share, including a one-time tax gain of 8 cents a share, on tax and hurricane-related charges of 42 cents a share. If not for one-time items, DuPont would have gained 33 cents a share in Q3, beating analyst estimate of 29 cents per share. Revenue for Q3 rose to $6.3 billion from $6 billion in the year-ago period.

Sonic Automotive Inc. (SAC: chart), automotive retailer, announced that earnings from continuing operations in Q3 were 65 cents per share, up from 51 cents in the same period last year on 9.5% revenue growth. Results included charges of 7 cents to 9 cents a share due to hurricane disruption. On a same-store basis, revenue increased 6%.

United Auto Group (UAG: chart), automotive retailer, reported that Q3 net profit advanced 1.2% to 70 cents a share on 10.8% revenue growth, in line with analyst estimate. The company, which had a 7% increase in same-store retail sales, announced that the year-ago quarter benefited from the sale of investment, a reduction in its effective tax rate, a refund of U.K. consumption taxes and costs from the relocation of U.K. franchises.

Pentair, Inc. (PNTR: chart), power-tool manufacturer, reported that Q3 net income fell to 46 cents a share, a cent down from the year-ago period despite 18% revenue growth. Earnings from continuing operations advanced 44% to 47 cents a share from 33 cents a share in the same time last year.