Indexes Close Higher, Beer Merger Talk

123jump.com Staff
15 Feb, 2007
New York City

Market traded higher as the Fed Chairman continued his testimony for the second day. He also said that raising minimum wage is not going affect the inflation because a small number of people earn wages at that rate. Hershey plans to cut 1,500 jobs over the next three years. Unemployment claims rose 44,000 at the end of previous week to seasonally adjusted 357,000. United Healthcare rose 4% on stake from Buffett. Anheuser Busch rose 3% on merger talks. Home prices decline in most cities.

[R]4:00PM NY; 10:00PM Frankfurt; 2:30AM Mumbai - GLOBAL MARKETS[/R]

Markets in New York closed higher after rebounding in the afternoon. The second day Fed Chairman testimony continued. Median home prices fell on most metro areas around the U.S. Oil price fell on lower than expected fall in distillate inventory. Caterpillar rose on stock buyback of $7.5 billion. Guess, the apparel retailer, rose 12% on sharp rise in earnings and decision to stock split. In Europe, L’Oreal, ABB, Akzo earnings disappointed analysts. Tokyo main index in Japan closed at seven year high.

Yield on 10-year U.S. bond closed at 4.706% and the 30-year bond closed at 4.805%.

Gold increased $1.400 to close at $673.400 a troy ounce, silver gained 2.5 cents to end at $13.990 a troy ounce and copper declined $23 to close at $5,698 per metric ton.

Oil gained 1 cent to close at $58.010 a barrel and heating oil decreased 1.130 cents to finish at 162.700 cents a gallon. Natural gas advanced 9.8 cents to close at $7.339 per MMBtu. Gasoline went down 2.040 cents to end at 159.580 cents a gallon.

Asian markets closed higher as Japanese shares advanced to their highest level in almost seven years on stronger-than-expected economic-growth figures, while Hong Kong stocks soared following U.S. Fed Chairman Ben Bernanke's comments. The advancers were led by India with a gain of 2.47%, Philippines with an increase of 2.38% and Indonesia with an advance of 2.25%. The only decliner was Thailand with a loss of 0.57%. Australia gained 0.53% on strong corporate earnings and bullish overseas markets.

European markets finished mixed, holding near multiyear highs with shares of Belgian-Brazilian brewer InBev rallying on merger speculation and Reed Elsevier up on a plan to sell off a division. Markets were also supported by a deluge of earnings from Michelin, ABB, Akzo, L’Oreal and Diageo. The decliners were led by Spain with a decrease of 0.19%, Frtance with a loss of 0.09% and Netherlands with a decline of 0.06%. The advancers were U.K. with an advance of 0.19% and Switzerland with a gain of 0.07%. RTS Main index in Russia rose 0.26%.

Latin America markets closed mixed. The decliners were Mexico with a loss of 0.41% and Brazil with a decrease of 0.09%. Argentina gained 0.13%. Canada advanced 0.51% with narrow gains in every sector. Brazilian news paper reported that Anheuser Busch and InBev are exploring merger to create a global giant with 25% of the world beer market.

Market movers

Anheuser-Busch ((BUD)), maker of Budweiser and Bud Light, shares rose more than 3% to $51.90 on the New York Stock Exchange. Anheuser-Busch's market capitalization is about $38.6 billion. A combination would create global beer giant with 25% of market share with InBev's focus on Latin America, Canada and Europe complementing Anheuser-Busch as the dominant producer in the stagnant U.S. market and big player in Mexico.

[R]2:30PM NY, U.S. Market Movers[/R]
Avici Systems jumps 14%, Ness Technologies expects higher earnings and Baidu lost 10.7%.

Armstrong World Industries ((AWI)), which makes flooring, ceilings and cabinets, said on Thursday it is considering its options, including a possible sale of the company. Its shares rose more than 11% on the New York Stock Exchange, pushing company’s market value to $2.1 billion, based on its most current count of shares outstanding.

Avici Systems Inc. ((AVCI)), jumping 14% after the networking-equipment company's fourth-quarter results blew past Wall Street's expectation. The company earned $3 million, or 21 cents per share, on revenue of $15.9 million. Excluding items, Avici earned $4 million, or 28 cents a share. Analysts polled by Thomson First Call expected earnings of 5 cents per share on revenue of $13.1 million. During the year-earlier period, the company posted a loss of $8.6 million, or 67 cents per share, on revenue of $6.1 million. Shares were trading up $1.09 to $8.63.

Capella Education ((CPLA)) said its fourth-quarter net profit increased to $5.7 million, or 39 cents per share, from $3 million, or 25 cents per share. Revenue at the online education services group rose 20.7% to $50.6 million in the quarter. The company said growth was driven by a rise in enrollments, with the number of active learners rising 23% to around 18,000 for the year as a whole. Shares went up 7.8%.

Chordiant Software Inc. ((CHRD)), maker of customer relationship software for businesses, reported a fiscal first-quarter net loss of $10.7 million, or 14 cents a share, versus a net loss of $1.77 million, or 2 cents per share, last year. Excluding certain items, the company posted a loss of $2.7 million, or 3 cents per share. Revenue climbed to $22.9 million against $22.6 million in the same period a year earlier. Shares climbed 12.7%.

FTI Consulting Inc. ((FCN)), provides problem-solving consulting and technology services to major corporations, financial institutions, and law firms, said that its fourth-quarter net earnings declined to $17.4 million, or 42 cents per share compared with $18.3 million, or 46 cents per share, in the year-ago period. Revenue climbed to $216.8 million versus $165.7 million in the same period a year earlier. Shares were up 15%.

Guess Inc. ((GES)) surged 10% after the clothing seller posted strong fourth-quarter results, set a stock split and declared its first dividend. For the fourth quarter, the company earned $45.7 million, or 99 cents a share, on revenue of $346.4 million. Analysts expected earnings of 93 cents a share and revenue of $330.1 million. During the year-earlier period, the company earned $25.8 million, or 57 cents a share, on revenue of $276.6 million. Shares were trading up $7.33 to $81.91.

Laboratory Corp. of America Holdings ((LH)), laboratory testing provider, said that its fourth-quarter earnings rose 17% to $103.7 million, or 81 cents per share compared with $88.9 million, or 64 cents per share, a year earlier. The Burlington, N.C., provider of clinical laboratory services said that exluding $7.7 million in restructuring charges and other charges related to the retirement of the company's chief executive, the company earned $108.4 million, or 85 cents per share, compared with $93.1 million, or 67 cents per share, a year earlier. Revenue for the quarter climbed 9.3% to $898.6 million versus $822.3 million a year ago. Shares climbed 7.3%.

Medimmune ((MEDI)) climbed Thursday after company-sponsored research showed that the FluMist nasal-spray flu vaccine outperformed a traditional flu shot in young children. Shares rose 7%.

Ness Technologies Inc. ((NSTC)), which provides information technology services, said its expects earnings of $1 to $1.05 per share in 2007. The company also said it anticipates revenue of $560 million to $570 million. Last year, the company earned 82 cents per share on revenue of $474.3 million. In the first quarter, Ness looks for earnings of 21 cents to 23 cents per share and revenue of $123 million to $129 million. Ness shares rose 7.2%.

Nutrisystem ((NTRI)) shares were leaping after the Horsham, Pa., weight-loss services company more than tripled its fourth-quarter income to $19.6 million, or 53 cents a share, on revenue that nearly doubled to $133.6 million. Wall Street sought 51 cents a share on $130.9 million revenue. The company also announced it will buy back up to $200 million worth of its shares. NutriSystem stock was gaining $6.03, or 13.7%, to $49.91.

P.H. Glatfelter Co. ((GLT)), engages in the manufacture and marketing of specialty papers and engineered products, reported fourth-quarter earnings of $15 million, or 33 cents a share, down from a year-ago profit of $26.9 million, or 61 cents a share. Excluding items, such as gains from the disposition of timberlands and shutdown and restructuring charges, the company posted a non-GAAP profit of $10 million, or 22 cents a share, in the latest quarter. Revenue climbed to $268.6 million from $143.2 million in the same period a year earlier. Shares climbed 6%.

Spartan Motors Inc. ((SPAR)), car-parts maker, said that its fourth-quarter net earnings increased to $3.28 million, or 16 cents per share compared with $986,000, or 5 cents per share, last year. The 2006 fourth quarter included a non-cash charge of $2.1 million, 10 cents per share, related to a write-off of goodwill for Spartan's ambulance subsidiary, Road Rescue. Revenue jumped to $123.6 million versus $75.5 million in the same quarter a year earlier. Shares gained 31%.

Stratasys Inc. ((SSYS)), maker of rapid prototyping systems, said that its fourth-quarter net earnings increased to $3.65 million, or 35 cents per share compared with $3.15 million, or 30 cents per share, last year. Excluding stock-based compensation expense, profit came in at 38 cents per share. Revenue jumped to $29.7 million versus $23.5 million in the same period a year earlier. Shares climbed 14.4%.

Baidu.com Inc. ((BIDU)) sank the Beijing-based search engine's shares and dragged other Chinese Internet stocks lower on a disappointing outlook. Baidu posted strong fourth-quarter results Wednesday after the market closed, with profit up fivefold and online marketing revenue more than doubling from year-ago results. Shares were down 10.7%.

[R]1:00PM European markets closed near multi-year highs.[/R]
European stocks finished mixed on Thursday, holding near multiyear highs. Markets were lifted by solid gains for Belgian-Brazilian brewer InBev on merger speculation and Reed Elsevier on a plan to sell off a division. Shares of brewer InBev rallied 4% on reports that it's held preliminary merger talks with Anheuser-Busch Cos.to create what would be a worldwide brewing giant. Other beer producers also gained. SABMiller rose 1.9%, Carlsberg rose 2.7%, Heineken added 2.3% and Scottish & Newcastle moved 2.3% higher. A batch of earnings from companies also provided a boost. Diageo climbed 2.4% in London after the maker of Johnnie Walker lifted its operating profit forecast for the year. In the autos sector, French tire maker Michelin's rose 6.7% on a positive 2007 outlook. Among other gainers, Germany's DaimlerChrysler advanced 3.7% on the restructuring moves detailed on Wednesday. In the financial sector, Swiss banking group Credit Suisse added 3.5% after it said Q4 net profit advanced fourfold. Media sector performance was helped by publishing group Reed Elsevier which rose 6.6% after the Anglo-Dutch group reported a 35% increase in annual profit. Britain's FTSE 100 closed 0.2% higher at 6,433.30, while the German DAX 30 declined a fraction of a percentage point at 6,958.62 and the French CAC-40 lost 0.1% at 5,720.88.

Crude oil prices extended decline on Thursday. Light, sweet crude March delivery fell 74 cents to $57.26 a barrel. Heating oil slipped to $1.6231. Natural gas lost 4 cents to $7.20 per 1,000 cubic feet. London Brent gained 38 cents to $56.98. The U.S. dollar lost ground against its major currency rivals. The euro was quoted at $1.3138, up from $1.3128. The dollar bought 119.57 yen, down from 120.78. The British pound was quoted at $1.9540, down from $1.9625.


[R]11:30AM U.S. market averages traded mixed. Caterpillar boosted the Dow.[/R]
U.S. stocks kept showing a mixed performance, with investors cautious on Fed Reserve Chairman's second day of testimony to Congress and digesting mixed economic data. Caterpillar ((CAT)) supported the Dow, rising 2% after its board announced a $7.5 billion stock repurchase plan. Qualcom ((QCOM)) gave the tech sector a boost with a 2.6% gain on brokerage upgrade to buy from neutral. Among disk drive stocks, shares of Network Appliance ((NTAP)) rose 3.9% on stronger-than-expected Q3 earnings. Semiconductor, airline, and brokerage stocks also moved to the upside, while oil service stocks showed considerable weakness amid lower oil price.

Some healthcare provider stocks posted significant strength in morning trading, with LabCorp ((LH)) rising 7% after on better-than-expected Q4 earnings growth and full-year earnings forecast. Shares of Sunrise Senior Living ((SRZ)) moved 4.4% higher after Health Care Property ((HCP)) offered to acquire the senior living services provider for $1.2 billion, outbidding a rival Ventas ((VTR)). Health insurance stocks also moved to the upside, with Amerigroup ((AGP)) helping to lead the sector higher. Shares of Amerigroup are currently up 8% after the company reported strong Q44 earnings growth and raised its full year 2007 earnings outlook.

In late morning trading, the Dow was up 6.49, or 0.05%, at 12,748.35, after reaching a new trading high of 12,768.69. The Standard & Poor's 500 index was down 0.72, or 0.05%, at 1,454.58, while the Nasdaq composite index was up 2.49, or 0.10%, at 2,490.87. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.70% from 4.74% late Wednesday on news that the output at U.S. factories, mines and utilities was down 0.5% in January, and that the number of newly laid off workers jumped last week to the highest level since late November.

[R]Industrial production surprisingly dropped in January.[/R]
The Federal Reserve released its report on industrial production and capacity utilization in the month of January on Thursday, showing that industrial production unexpectedly fell compared to the previous month. The report showed that industrial production fell 0.5 percent in January following an upwardly revised 0.5 percent increase in December. Economists had expected production to come in unchanged compared to the 0.4 percent increase originally reported for the previous month. The drop in industrial production was partly due to a decline in output from the manufacturing sector, which fell 0.7 percent in January after rising 0.8 percent in December. The Fed said that about half of the decrease was a result of a 6 percent drop in motor vehicles and parts output. While the output of mines fell 1.2 percent in January after rising 1.4 percent in December, the output of utilities rose 2.3 percent after falling 2.7 percent. The rebound in utilities' output came as temperatures moved back toward seasonal norms. The report also showed that the capacity utilization rate fell to 81.2 percent in January from 81.8 percent in December. Economists had been expecting a more modest decrease to about 81.7 percent. The decrease reflected lower capacity utilization in the manufacturing and mining industries, although capacity utilization in the utilities industry increased after falling in the previous month.


[R]9:45AM U.S. stocks opened mixed. Guess jumped 11% on earnings news.[/R]
Wall Street opened mixed on Thursday, reflecting mixed earnings news, a report about bad loans in the financial sector, and better-than-expected economic data. Caterpillar ((CAT)) supported the Dow with a 2.6% advance on the back of $7.5 B repurchase plan. Retail shares slipped with Staples ((SPLS)) and Bed Bath & Beyond ((BBBY)) among the top decliners, each falling 1%. However, Guess Inc. ((GES)) jumped 11% after the company posted a better-than-expected profit, announced a two-for-one stock split and set a quarterly dividend.

Financial stocks moved lower on a report that many firms are trying to speed up efforts to unload bad U.S. housing loans. Major firms like Merrill Lynch & Co. ((MER)), J.P. Morgan Chase & Co. ((JPM)), and HSBC Holdings Plc ((HBC)) were mentioned in the report. A decline in the energy markets and lower-than-expected earnings from oil services provider Baker Hughes pressured oil company stocks. Baker Hughes ((BHI)) fell nearly 8%. Qualcomm Inc. ((QCOM)) rose 2.5% after an analyst upgrade, but it failed to lift tech stocks as Internet phone company Vonage Holdings Corp. ((VG)) dropped 5.7% after it posted a Q4 loss.

Among other early market movers, Brilliance China Automotive Holdings Limited ((CBA)) climbed 12% in early trading. Terex Corp. ((TEX)), which makes construction and industrial equipment, said its Q4 profit nearly tripled to 97 cents per share, compared with 34 cents per share a year ago on higher sales. The stock jumped 9%. FTI Consulting ((FCN)) surged 13.3% on record Q4 profit. Laboratory Corp. of America Holdings ((LH)) rose 7% on 17% profit increase. In the first hour of trading, the Dow rose 5.44, or 0.04%, to 12,747.30. The Standard & Poor's 500 index was down 1.39, or 0.10%, at 1,453.91, while the Nasdaq composite index fell 1.34, or 0.055, at 2,487.04. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.70% from 4.74% late Wednesday.


[R]9:30AM NY-2:30PM London FTSE slips on Wolseley, mining stocks.[/R]
The UK market declined in early afternoon on Thursday. At 2:30 PM GMT, the FTSE 100 was down 0.11% at 6,414.

Advancers

Shares in Reed Elsevier, the Anglo-Dutch publishing company, gained 5% after it posted a 7% increase in adjusted earnings per share and announced plans to sell its Harcourt US educational operations. Another stronger advancer was Diageo surging 4.5% as the brewer of Guinness and Smirnoff vodka boosted full-year profit forecast as it released interim results marching expectations. The company also announced its sales of premium whiskies in the US were robust, helping its spirits operations increase net sales by 8%. Among the mid-caps, car dealer, Pendragon, gained 4% after the company reported a 51% increase in annual profit before tax. BAE Systems found a firm footing and advanced 2.4% after Credit Suisse held its outperform advice and Merrill Lynch kept its buy recommendation and lifted its price target.

Decliners

Wolseley led the decliners, falling 3.1% after reports of bid interest in the plumbing and heating goods supplier died away. Traders said that the rumours triggered a wave of short-covering in the stock. Engineering company Tomkins declined 2.2% after it reported a 7% decline in full-year pre-tax profit of 244.8 million pounds. It also added that the outlook for its markets remained difficult. Miners dipped as investors took to profit-booking following the recent rally in the sector. Antofagasta decreased 0.9%, and Rio Tinto, off 0.4%, are among the worst performers. Dream Direct gave a warning this morning that quarterly sales tumbled 21%, with restructuring costs expected to tip the home shopping retailer deep into the red for the full year. Shares plummeted 33%.


[R]9:00 AM Market futures pointed higher, boosted by economic data.[/R]
U.S. stock futures advanced on Thursday, bolstered by bigger-than-expected rise in manufacturing activity in the New York area in February and a larger drop in January import prices. The U.S. Labor Department said that prices for imported goods fell 1.2%, vs. expectations of a 1.1% drop. It was also reported that initial jobless claims rose 44,000 during the week ending Feb. 10 to 357,000, the highest level seen since late November. Among pre-market highlights, JetBlue Airways ((JBLU)) rallied 3.1% in pre-open trading after Goldman Sachs upgraded the air carrier to buy from neutral. Goldman also downgraded AMR Corp. ((AMR)) to neutral from buy, citing valuation concerns. The stock fell 1.5% in the pre-open.

Oil services company Baker Hughes Inc. ((BHI)) dropped 4.4% after reporting a slower-than-forecast rise in Q4 net income. Biogen Idec shares ((BIIB)), biotechnology company, reported earnings increase but missed expectations. The company earned 32 cents per share, up from a profit of 16 cents per share a year earlier. The stock lost 1.2%. In other corporate news, candy maker Hershey Co. ((HSY)) said it is going to cut 1,500 jobs over three years as part of a plan to scale back production lines and move some manufacturing to Mexico. S&P 500 futures inched 0.40 of a point higher to 1,459.00 and Nasdaq 100 futures slipped 0.25 of a point to 1,822.50. Dow industrial futures tacked on 15 points to 12,780.

[R]Import and export prices declined in January.[/R]
The Department of Labor released its report on import and export prices in the month of January on Thursday. While the report showed a notable decrease in import prices, it also showed a modest increase in export prices. The report showed that import prices fell 1.2 percent in January after a revised 1.1 percent increase in December. The decrease was largely due to a steep decline in prices for petroleum imports. Petroleum import prices fell 7.3 percent in January following a 4.6 percent increase in the previous month. Excluding petroleum imports, import prices came in unchanged after rising 0.5 percent in December. At the same time, the report also showed that export prices edged up 0.3 percent in January following a revised 0.7 percent increase in December. Higher prices for agricultural exports contributed to the increase in export prices. The Labor Department said that agricultural export prices rose 0.7 percent in January after rising 2.4 percent in the previous month. Nonetheless, export prices still rose 0.3 percent excluding agricultural exports.


[R]8:30AM Asian markets rallied on Thursday with Japan at seven-year high.[/R]
Asian markets finished higher on Thursday. Japanese Nikkei Index ended 0.8% higher at 17,897. Retailers led the gainers. Department store Takashimaya jumped 10%, while convenience-store operator Seven & I Holdings gained 4.7%. The Hong Kong Hang Seng Index jumped 1.6% to 20,538. In Hong Kong, large-caps ended higher after comments by U.S. Federal Reserve Chairman Ben Bernanke raised expectations for a U.S. interest-rate reduction later this year, sending the benchmark index higher. Sun Hung Kai Properties advanced 1.8%, Cheung Kong was up 1.2% and Hang Lung Properties closed 2.8% higher.

The Shanghai Composite Index surged 3% to 2,993. Large-capitalized Baoshan Iron & Steel added 3.3%, China Chemical & Petroleum rose 2.9% and Bank of China surged 4%. Australian S&P/ASX 200 advanced 0.5% to close at 5,993. Corporate earnings and strong overseas markets pushed the Australian share market to the 6,000-point level Thursday, hitting its fifth consecutive daily high. Telstra made the biggest contribution to strength in the market, advancing 3.9% after posting a smaller-than-expected fall in its first-half profit. Other markets around the region also rose. South Korean Kospi Index advanced 0.5% to 1,444 and Taipei ended 0.9% higher at 7,809.


[R]8:00 AM Baidu said its Q4 earnings rose fivefold.[/R]
China's leading Internet search engine, Baidu.com Inc. ((BIDU)), said that its Q4 net income increased fivefold, as online marketing revenue more than doubled. Baidu reported earnings rise of 122.8 million yuan ($15.7 million), or 3.54 yuan (45 cents) per American Depositary Share, from 24.5 million yuan, or 0.71 yuan per ADS a year ago. The quarterly profit exceeded estimates for earnings of 32 cents per ADS. Baidu''s Q4 revenue more than doubled to 271.3 million yuan ($34.8 million), up from 114.9 million yuan last year. Online marketing revenue more than doubled to 269.9 million yuan ($34.6 million).

The company released first-quarter revenue forecast that fell short of analyst estimates. The company said it expects Q1 revenue between 265 million yuan ($34 million) and 275 million yuan ($35 million), while analysts project revenue of $38.9 million. Baidu, which holds more than 60% of the Chinese Internet search market, plans to spend $15 million in 2007 on its expansion into Japan.


[R]7:30AM NY-6:30PM Mumbai Sensex advances Thursday in a broad rally.[/R]
The Sensex on BSE finished 345.65 points, or 2.47%, higher at 14,355.55. The market-breadth was strong, for every stock that fell four stocks rose. On BSE 2,121 shares advanced, 525 declined and only 33 shares were unchanged. Of the 30 stocks in the Sensex, 24 advanced, while the rest declined. The turnover on BSE was Rs 4,266.54 crore, higher than Rs 3,998 crore on Wednesday. On NSE, the turnover was Rs 10,025.11 crore, much higher than Rs 8,878.7 crore on Wednesday.

Economic news
Wholesale inflation hit a two-year high of 6.73 % in the week ended 3 February, from 6.58 % in the previous week, topping the forecast of the Reserve Bank of India for the sixth week in a row, as prices of edible oils, dairy products and vegetables rose. The rupee also advanced, following the stronger yen and gains in Indian ADRs. One dollar traded at Rs 44.08/09.

Commerce and Industry Minister Kamal Nath on Thursday announced that the government may liberalize imports to control the inflation. The government believes that higher inflation is due to the constraints on the supply side. Also, the government reduced the retail prices of gasoline and diesel by 4.5% and 3.2% respectively on Thursday to combat inflation.

Deutsche Börse has bought a 5% stake in Bombay Stock Exchange, and paid Rs 1.89 billion or $43 million, for the stake in the exchange, the chief executive, Rajnikant Patel, announced Wednesday in Mumbai.

Corporate news
Citigroup Inc., Blackstone Group Holdings LP and two Indian finance companies have signed an agreement to set up a $5 billion infrastructure fund. The aim of the fund will be to improve the country’s roads, ports and other facilities, the Indian finance ministry announced.

Trading highlights
Newly-listed Redington was the most-active stock with a turnover of Rs 407.30 crore followed by another new listing Pearl Fashion and Global Broadcast.

Advancers
L&T surged 4.8% to Rs 1,692.10, on bargain-hunting after a recent sell-off. The company has seen rising backlog of orders.

Telecoms were given a lift from the strong performance of IPO, Idea Cellular, which was subscribed almost 27 times. Reliance Communications and Bharti Airtel surged. Reliance Comm gained 3% to Rs 466 and Bharti Airtel was up 4.1% to Rs 791.75.

Auto stocks advanced after the government cut gasoline and diesel prices. Ashok Leyland surged 5.4% to Rs 46.20, M&M surged 5% to Rs 900, Maruti Udyog gained 4% to Rs 892 and Hero Honda gained 4.4% to Rs 744. Tata Motors gained 1.8% to Rs 866. Tata Motors and Fiat on Wednesday signed an $80 million agreement to build Tata pick-up trucks under the Fiat brand in Cordoba, Argentina at the Italian carmaker plant.

IT shares advanced on overnight gains in their ADRs listed in New York. Infosys gained 4% to Rs 2,374 after its ADR surged 3% on Wednesday. Satyam Computer advanced nearly 5% to Rs 485, its ADR rose nearly 4% and Wipro gained 3.9% to Rs 676 as its ADR advanced 1.2%. Index heavy Reliance Industries gained 2.3% to Rs 1,410.

Banks also rallied despite the increase in inflation. ICICI Bank gained nearly 4% to Rs 951 and HDFC Bank added 3% to Rs 1,048.

Decliners
Ranbaxy declined 5.1% to Rs 393.50 on reports that investigators for the U.S. Food & Drug Administration yesterday locked the headquarters of Ranbaxy USA.

NTPC slipped 1.3% to Rs 142 and Reliance Energy declined 0.8% to Rs 542.15. ACC lost 0.4% to Rs 1,018 and Gracim was nearly flat, shedding 0.1 to Rs 2,654.


[R]6:30AM European markets dipped on Thursday on weakness in the banking stocks.[/R]
European markets were lower on Thursday. . By mid morning, Frankfurt Xetra Dax added 0.1% to 6,964.2, the CAC 40 in Paris fell 0.1% to 5,722.8 and London FTSE 100 shed 0.2% to 6,409.1.

Advancers

DaimlerChrysler, German carmaker, advanced 5.3% after the board of the company on Wednesday proposed a restructuring of the ailing US Chrysler unit. The company also stated that all options were on the table, raising the possibility of a full or partial sale of the division, or a spin off.

Michelin, French tire maker, added 6% as it targeted between 1.5 billion euros and 1.7 billion euros in cost reductions in the period to 2010 as it struggled with the violent impact of raw materials prices.

Reed Elsevier, Anglo-Dutch publishing group, said it about to sell its underperforming education arm after posting full-year pre-tax profit that missed expectations. The company announced that the sale would result in a more cohesive and predictable business that would generate earnings per share growth of around 10% a year. The shares gained 6%.

Luxury goods group LVMH gained 4.2 % after releasing record full year profits, despite the negative impact of a strong euro, and said it expected further growth in 2007 so long as foreign exchange conditions did not deteriorate. Christian Dior, which owns around 42% of LVMH, also reported strong 2006 results. Its shares gained 4.4%.

Swiss bank Credit Suisse gained 3.6% after posting record Q4 profits that easily topped market forecasts, thanks to a 130 % rise in trading revenues.

Decliners

Banks retreated on concerns over the French retail banking division of BNP Paribas. The bank topped forecasts with its Q4 net profit, although operating profit was a little weaker than expected due to unforseen costs related to its takeover of Italy’s BNL last year. BNP Paribas fell 3.4%.

Societe Generale, which declined in the previous session as similar concerns were raised after it posted full-year results, was down 1.8 %. Credit Agricole shed 2.6%.

Oil and gold

Oil inched above $58 a barrel on Thursday in volatile trade that has trapped prices in a narrow range. U.S. crude for March delivery was 29 cents higher at $58.29 a barrel in early trade in London. Brent crude for April was up 34 cents at $57.77. Gold for immediate delivery was little changed, up 52 cents, or 0.1% at $669.55 an ounce in early trading in London.

Currencies

The euro bought $1.3137 in morning European trading, up slightly from $1.3128 in New York late Wednesday. The British pound rose to $1.9663 from $1.9625. The dollar fell to 120.17 yen from 120.78 yen.