[R]1:00AM New York – Rising earnings lift U.S. averages.[/R]

U.S. stocks held on to their early gains after three hours of trading. Dow Jones added Nasdaq increased, and S&P 500 edged higher

Earnings news dominated the trading sentiment in the morning.

Apple jumped 7% or $11 to $185.31 after reporting 67% increase in earnings and 29% rise in sales.

Burlington Northern (BNI: chart) added $3.50 to $86.50 after reporting earnings per share of $1.48 compared to $1.33 from a year ago. Freight revenue increased 4% or $133 million to $3.95 billion and operating income increased 9% to $1 billion. Agricultural products shipment rose 10% to all time high of $682 million on 8% increase in volume for wheat, ethanol, fertilizer, and bulk food.

Western Union (WU: chart) reported third quarter revenue rose 10% to $1.3 billion and earnings declined 16% to $216.3 million from $258.1 million a year ago. Earnings per share declined to 29 cents from 34 cents a year ago. Western union stock jumped $1.27 to $20.57 after the news.

Coach (COH: chart) reported first quarter net sales increased 28% to $677 million and net income increased to $154.8 million from $125.6 million from a year ago. Earnings per share increased 32% to 41 cents from 31 cents a year ago. Coach stock fell 11% to $36.72.

T Rowe Price Group, Inc (TROW: chart) reported third quarter net revenue of $571 million up from $452 million, earnings per share increased to $175 million from $128 million and earnings per share increased to 63 cents from 46 cents a year ago. Revenue in the quarter jumped 27% and earnings increased 37% in the period.

Investment advisory revenues earned from the T. Rowe Price mutual funds distributed in the United States increased to $348 million for the third quarter of 2007, up $77.5 million from the comparable 2006 quarter. Mutual fund assets increased $9.0 billion during the third quarter of 2007, and ended the quarter at $246.3 billion.

Market appreciation and income added $5.3 billion to the mutual funds during the quarter, while investors added net inflows of $3.7 billion. Net cash inflows were spread among the funds, with the international and global stock funds adding $1.4 billion, the U.S. stock and blended asset funds adding $1.2 billion, and the bond and money market funds adding $1.1 billion.

The New Asia, New Income, Growth Stock, Blue Chip Growth and Equity Index 500 funds each added more than $.5 billion during the quarter.

T Rowe stock jumped 4% to $57.34 in mid-day trading.

[R]9:00AM New York – Market averages are pointing higher opening on earnings and a sharp rally in Asia and Europe.[/R]

Market averages futures in New York are pointing higher opening. Dow Jones Industrial Average is trading up 40 to 13,650, Nasdaq 100 futures are up 17 to 2188.75, and S&P 500 futures are ahead by 3 to 1,517.

In the overnight trading, Asian markets surged lifted by a surge in India, Indonesia, Hong Kong, and Korea. India surged 5% after the government softened the ban on derivative trading. Indonesia and Hong Kong added 4%.

European markets at mid-day are trading 1% higher across the region. Norway index with a rise of 1.8% is leading the region followed by increases of 1% or more in France, UK, and Switzerland.

Apple reported 67% rise in earnings on 29% increase in sales. Apple surged nearly $10 or 7% in the pre-market trading to $187.

Du Pont (DD: chart) third quarter net income increased 8.5%. Net income rose to $526 million from $485 million or earnings per share increased to 56 cents from 52 cents a year ago. Revenue in the quarter rose 6% to $7.04 billion.

AT&T (T: chart) third quarter earnings increased 41%.

UAL, the parent of United Airlines increased 76% on 6.8% rise in $5.53 billion. The quarterly earnings increased to $334 million from $190 million or earnings per share increased to $2.21 from $1.30.

BP (BP: chart) reported third quarter profit declined 29% to $4.41 billion from $$6.23 billion or earnings per share fell to 23.1 cents from 31.4 cents. Revenue in the quarter increased 2.7% to $72.6 billion.