[R]9:15AM New York – U.S. stocks edge higher at the opening after the release of May inflation at 0.6%.[/R]

The consumer price index in May rose at 0.6% after rising at 0.2% in April. The higher fuel and food prices are finally reflecting in the index. 123jump.com believes that the government measure of inflation is lagging in calculating the inflation felt by most people and inflation at family level of consumption for most families may be running at two to three times the level captured by the index.

Economists and government like to focus on core inflation rate, which excludes the rise in food and energy prices, rose 0.2%. However inflation measure basket has 25% weight to the food and energy consumption.

U.S. stocks rose after front month crude oil futures fell in the morning trading on the hopes that a large increase in production is likely from Saudi Arabia. Crude oil price fell 1% or $1.30 to $134.90 a barrel.

Airlines, transportation and logistics companies stocks rose in the morning trading.

Home foreclosure rates May jumped as more lenders repossess homes. Foreclosure filings rose 48% in May from a year ago. Nearly 74,000 homes were reposed in May according to a report from a real estate research company RealtyTrac.

Europe market update

European stocks traded mixed in the mid-day session, the European Statistical Office reports rising rate of employment and labor costs in the euro area while Germany records higher consumer prices. The mid-day key indices in Germany and France were lower.

The CAC 40 in Paris trading lost 1.06% to 4,622.80 and in Germany the DAX 30-index retreated 51.61 points or 0.77% to 6,662.91. Stocks in Switzerland declined as the Swiss Market index fell 53.26 points or 0.74% to 7,169.53. The FTSE 100 fell 60.90 points or 1.05% to 5,729.60.

Earnings in review

Capstone Turbine Corporation, a developer of micro-turbine technology said fourth quarter revenues rose 49% to $31.3 million from $21.0 million a year ago. Net loss in the quarter was $36.1 million or 25 cents per diluted share compared to net loss of $36.7 million or 32 cents per share, a year ago.

Capstone''s net loss was $36.1 million, or $0.25 per share, for the fiscal year ended March 31, 2008 compared to $36.7 million loss or $0.07 per share in the prior fiscal year. Cash and cash equivalents for the fiscal year ended March 31, 2008 were $42.6 million. Cash balances decreased $17.7 million during the fiscal year ended March 31, 2008.

Capstone Turbine Corporation (CPST: chart) in the last one year traded as high as $4.04 in May 2008 and as low as $0.91 in August 2007. Based on yesterday’s closing price the company has a market cap of $496.45 million.

Catalyst Semiconductor, Inc, a supplier of memory semiconductors used in telecommunications and networking systems said fourth quarter revenues decreased 5% to $17.5 million from $18.4 million a year ago. Net income in the quarter was $820,000 million or 5 cents per diluted share compared to net loss of $457,000 million or 3 cents per share, a year ago.

Net revenues increased 14% to $75.9 million for fiscal 2008 from $66.4 million for fiscal 2007. Net Income increased to $2.9 million or $0.17 per diluted share for fiscal 2008 compared to a net loss of $429,000 or a loss of $0.03 per share, for fiscal 2007.

Catalyst Semiconductor, Inc (CATS: chart) in the last one year traded as high as $7.92 in October 2007 and as low as $3.16 in January 2008. Based on the yesterday’s closing price the company has a market cap of $66.48 Million.

Finisar Corporation, a wireless network component maker said fourth quarter revenues rose 25.3% to $121 million from $96.5 million a year ago. Net loss in the quarter was $8.7 million or 3 cents per diluted share compared to net loss of $16 million or 5 cents per share, a year ago.

Finisar''s optical subsystems revenue, which comprises the bulk of its sales, climbed 26.3% to $111.4 million, while network test and monitoring systems revenue rose 14.7% to $9.6 million.

For the full fiscal year, Finisar''s loss narrowed to $36.4 million, or 12 cents per share, from $45.4 million, or 15 cents per share, in fiscal 2007. The company earned 7 cents per share on an adjusted basis. Revenue rose to $440.2 million from $418.5 million.

Finisar Corporation (FNSR: chart) in the last one year traded as high as $4.21 in August 2007 and as low as $1.06 in March 2008. Based on the yesterday’s closing price the company has a market cap of $543.45 Million.