The Home Depot Inc., the worldÔÇÖs largest home improvement retailer, reported a 24 percent drop in second-quarter profit but still beat Wall Street expectations.   Atlanta-based Home Depot today announced net earnings of $1.2 billion (71 cents per share) in the three months ended 3 August, compared with $1.6 billion (81 cents per share) in the same period a year ago.

Mining giant BHP Billiton has announced record annual profits for the seventh consecutive year as commodity prices continue to soar.

Wal-Mart, the world's largest retailer, has reported a 17 percent rise in quarterly net income as US shoppers turn increasingly towards cheaper goods.   ┬á Net income in the three months to 31 July climbed to $3.45 billion, up from $2.95 billion last year.

Chrysler is the latest automaker to announce plans to switch production away from light trucks and SUVs toward more fuel-efficient vehicles.

The US trade deficit shrank unexpectedly by over 4 percent in June, as a weak dollar boosted exports to an all-time high, according to official figures released Tuesday. ┬á US Commerce Department statistics show the June trade deficit at $56.8 billion, down from $59.2 billion in May. Exports of goods and services rose 4 percent to a record $164.4 billion, offsetting a 1.8 percent rise in imports. ┬á┬á Although the dollar has recently gained ground against the euro and other currencies, its earlier decline helped export orders by making US goods cheaper abroad.

AT&T announced today that it has been selected by Boeing as its primary telecommunications provider, with a five year contract valued at over $400 million.   ┬á The contract calls for AT&T to provide advanced network and wireless services to help Boeing enhance its business processes and increase productivity. ┬á┬á AT&T will consolidate BoeingÔÇÖs existing, disparate telecommunications networks into one Internet Protocol (IP)-enabled voice and data network.

Illinois Tool Works Inc. (ITW), a multinational manufacturer of a diversified range of value-added industrial products and equipment, today announced a decision to divest its decorative surfaces segment including Wilsonart, and the industrial software business Click Commerce.  ┬á In 2007, the decorative surfaces segment had revenues of $1.2 billion and operating margins of 13 percent.

While automakers the world over are struggling in the current economic climate, and Ford and GM in particular have declared huge quarterly losses, Toyota has also seen profits fall, but it is still the most profitable automaker in the world.  ┬á ToyotaÔÇÖs net income in the three months to June 30 fell 28 percent to 353.7 billion yen ($3.2 billion), from a record 491.5 billion yen in the same period of last year. ┬á┬á Toyota said the trading environment had taken a sharp turn for the worse, creating a "very tough" quarter.

A cautious US Federal Reserve has left its key interest rate unchanged at two percent as it wrestles with the conflicting threats of a potential recession and rising inflation.   ┬á The Fed's rate setting committee explained that economic growth was likely to remain weak for some time while the outlook for inflation was "uncertain". Consumer prices rose at their fastest monthly rate in eleven years in June, but oil and other commodity prices are now falling.

Oil prices have continued to fall, dropping to a three-month low of $118 a barrel as traders react to news of rising supplies and relief that storms in the Gulf of Mexico may not damage US oil and gas facilities.  ┬á There had been fears that tropical storm Edouard could damage offshore drilling sites in the Gulf, which caused offshore operators such as Shell and Chevron to evacuate staff from some of their drilling platforms, but production now seems unlikely to be affected.