U.S. MARKET AVERAGES

Market was in the grip of inflation worries.

The non-farm payroll grew by 193,000 on top of 140,000 and 354,000 gains in December and November of 2005 as reported by Labor Department. The unemployment for the month of January dropped to five-year low to 4.7%. Market quickly turned its attention to wage inflation and for the most of day traded in the negative territory.

Disappointing earnings report from Amazon also prompted several traders to sell tech stocks as Amazon dropped more than 11%. Amazon earnings disappointment is a latest among internet stocks disappointing markets including Yahoo, eBay and Google.

Oil rose on geopolitical issues and tensions in Middle-east. Oil, gasoline and heating oil gains maintained upward bias near close.

MOVERS AND SHAKERS

Clyco Genesys (GLGS: chart) voluntarily filed for Chapter 11 bankruptcy protection. The company said it eliminated over half its workforce to give it time to pursue strategic alternatives, including a possible sale of the company. The company’s shares dropped 67.9%.

OccuLogix Inc (RHEO: chart), biotechnology company, reported negative results of a phase III MIRA-1 trial of a proposed treatment for the dry form of age-related macular degeneration. The company said the MIRA-1 trial of its RHEO system missed its primary endpoint, failing to demonstrate a statistically significant difference between the treated group and the placebo control group. OccuLogix is in the process of evaluating the implications of the data on its application for marketing approval from the Food and Drug Administration. The stock tumbled 66.7%.

Ryder System Inc (R: chart), vehicle fleet management company, reported Q4 net income of $58.8 million, or 92 cents a share, compared with $62.6 million, or 96 cents a share in the year-earlier period on 13% sales growth. Income from continuing operations came to 93 cents a share, missing estimates by a penny. The company forecast 2006 earnings at $3.75 to $3.90 a share. The stock fell 4%.

Rackable Systems (RACK: chart), server and data storage company, reported Q4 net earnings of $7.31 million, or 32 cents a share, reversing from a net loss of $14.3 million, or $2.57 a share last year. There were 22.7 million shares outstanding in the fourth-quarter vs. 5.57 million a year ago. Quarterly revenue rose to $83.1 million from $23 million. Company’s shares jumped 19%.

ECONOMIC NEWS

The Department of Commerce release its report on factory orders in the month of December on Friday, showing that order growth came in slightly higher than expected.

The report showed that new orders for manufactured goods rose 1.1 percent in December following an upwardly revised increase of 3.3 percent in November. Economists had expected orders to increase 1.0 percent compared to the 2.5 percent increase originally reported for November.

The increase in factory orders came as new orders for manufactured durable goods rose 1.8 percent in December after rising 5.3 percent in November. The growth in durable goods orders was upwardly revised from the previously reported 1.3 percent growth. New orders for manufactured non-durable goods also increased in December, rising by 0.3 percent.

The report also showed that shipments rose 2.2 percent in December following a 0.8 percent increase in November. At the same time, inventories rose 0.5 percent after rising 0.3 percent in the previous month.

The U.S. economy added fewer than expected jobs in the month of January, according to a report from the Department of Labor. At the same time, the report showed an upward revision to December job growth and an unexpected decline in the unemployment rate.

The report showed that non-farm payroll employment rose by 193,000 in January following an upwardly revised increase of 140,000 in December. Economists had been expecting payrolls to increase by 275,000 compared to the increase of 108,000 originally reported for December.

The Labor Dept. said that job gains occurred in several industries, including construction, mining, food services and drinking places, health care, and financial activities. Modest declines were seen in employment in retail trade and government.

The report also showed that the unemployment rate unexpectedly fell to 4.7 percent in January from 4.9 percent in December. Economists had expected the unemployment rate to remain unchanged.

INTERNATIONAL MARKETS NEWS