U.S. MARKET AVERAGES

Lower rates in the bond market, lower oil prices in NY, optimism on Katrina aftermath recovery fed the rising averages across the board. All three major averages closed up at least 1.2% higher, with the Dow leading the averages with 1.36% rise during the session. The general positive sentiment for the day was also supported by the three-year high close in European market averages.

Retail, tech, Internet, financials, hotels and leisure sectors jumped as investors largely kept buying shares in recently sold-off sectors. Marriott, Choice Hotels, and Hilton hotel stocks rose during the session. The energy sector which sold-off during the morning bounced back and closed in the positive as oil did dip below $66 per barrel.

Home Depot and Coca Cola stocks found investors’ favor as Hurricane Katrina drove higher sales in the Gulf of Mexico region, Wal-Mart saw rise in share price of 3% on affirming same store sales guidance of 2.4% for the current month.




ECONOMIC NEWS

The Institute for Supply Management's measure of financial services, retail trade and other non-manufacturing businesses climbed to 65 from 60.5 in July. A reading above 50 indicates expansion.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks ended the session mixed after trading in the positive at mid-day on crude-oil prices down at $66.46 a barrel. The Nikkei declined 0.3% as investors digested domestic economic data and took profit in steel and retailer stocks sell-off. Across the region, Hong Hong’s Hang Seng lost 0.4%, while South Korea’s Kospi gained 0.7%. The dollar edged up versus the yen to 109.45.

European markets closed the session higher, making solid gains on merger and acquisition news coming from the utility sector, a positive earnings report from the French insurer AXA and strong performance of the U.S. market averages. Declining oil prices also provided support to the stock markets. The German DAX 30 added 1.2%, the French CAC 40 rose 1%, and London’s FTSE 100 climbed 0.4%.


ENERGY, METALS, CURRENCIES

Oil prices declined as oil facilities have started recovering. Light sweet crude for October delivery fell $1.61 to $65.96 in New York on the Nymex. Gasoline futures fell 12 cents to $2.0587 a gallon. London Brent was up 46 cents to $65.31.

Gold fell in European trading as the U.S. dollar edged up. In London gold stood at $443.50 per troy ounce, down from $445.00. In Hong Kong the precious metal lost $2.50 to close at $443.35. Silver closed at $7.02, down from $7.05.

The U.S. dollar advanced against other major currencies in European trading. The euro was quoted at $1.2472, down from $1.2521. The dollar bought 109.68 yen, up from 109.16. The British pound stood at $1.8405, down from $1.8443.

EARNINGS NEWS


Core-Mark, convenience retail industry distributor, reported today first-half net income of 2005 advanced to 56 cents per share, up vs.14 cents per share for the same period last year on a strong net sales growth and a significant income increase from operations for the same period of 2005.