11:30AM Market averages moved lower on weak resource and semiconductor stocks.
In late morning trading, U.S. stocks reversed from earlier gains made on the back of better-than-expected economic data. On Wednesday, investors welcomed data which showed that construction of homes and apartments rose 2.5% in April to a seasonally adjusted annual rate of 1.528 million units. However, requests for new construction permits fell 8.9% in April, the biggest drop since a 24% plunge in February 1990. According to another report, industrial output rebounded by 0.7% in April, more than double the 0.3% gain that had been expected.

Market sentiment was hurt by weakness in resource and semiconductor stocks. Metals companies declined amid a decrease in commodities prices. Semiconductor stocks came under pressure after Applied Materials (AMAT: chart) posted a disappointing guidance. While the Dow and the Nasdaq traded below the flat line, the S&P 500 managed to remain in positive territory on strong gains by Compuware (CPWR: chart) and Bausch & Lomb (BOL: chart), rising 12.2% and 8%, respectively.

In late morning trading Wednesday, the Dow fell 1.95, or 0.01%, to 13,381.89 after being up as high as 57 points earlier. The Standard & Poor''s 500 index advanced 2.30, or 0.15%, to 1,503.49 and the Nasdaq composite index fell 1.91, or 0.08%, to 2,523.38. Bonds showed little change despite the economic readings. The yield on the benchmark 10-year Treasury note remained flat at 4.71% from late Tuesday.


9:45AM U.S. markets opened higher on mixed housing data and gains for Citigroup.
U.S. stocks advanced at opening on Wednesday, reflecting mixed housing data, speculation about Citigroup and a cautious outlook at chip-equipment maker Applied Materials. Dow component Citigroup (C: chart) jumped 3% after hedge-fund manager disclosed he bought more than 15 million shares in the bank. The blue-chip average received further support from gains in the shares of Johnson & Johnson (JNJ: chart), up 1.8%, J.P.Morgan (JPM: chart), rising 1.4%, and Boeing (BA: chart), higher by 1%.

Tech stocks were pressured by Applied Materials (AMAT: chart) which fell 4.6% after forecasting flat Q3 sales and up to a 15% drop in orders. Rival chip equipment makers KLA-Tencor (KLAC: chart) fell 2.1% and Lam Research (LRCX: chart) slipped 2.7%. Homebuilders advanced as investors shrugged off data showing 8.9% drop in building permits. Hovnanian Enterprises (HOV: chart) rose 1.3%, while Toll Brothers (TOL: chart) added 0.3%.

Again in the tech sector, Agile Software (AGIL: chart) dropped 13% after agreeing to be bought by Oracle Systems (ORCL: chart) for $495 million, or $8.10 a share. On the earnings news front, Federated Department Stores (FD: chart) said it swung to a profit from a loss, although earnings fell short of analyst expectations. Jack in The Box (JBX: chart) climbed 5% after it reported a better-than-forecast 25% profit rise.

In early trading, the Dow rose 45.99, or 0.34%, to 13,429.83. The Standard & Poor''s 500 index rose 7.35, or 0.49%, to 1,508.54 and the Nasdaq composite index rose 10.78, or 0.43%, to 2,536.07. Bonds showed little change despite the economic readings. The yield on the benchmark 10-year Treasury note remained flat at 4.71% from late Tuesday.


9:30AM The UK index is lower Wednesday on weak retail sector.

By mid-day, the FTSE 100 shed 5 points, 0.1%, to 6,564.4.

Advancers

There were few advancers on Wednesday. Vedanta Resources gained 1.9% after it posted full-year revenues increased 76% to $6.5 billion and earnings before interest, taxation, depreciation and ammortisation more than doubled to $2.7 billion.

Catering company Compass, up 2.2%, was in demand after it reported a solid rise in first half operating profit and sees growth continuing.

Decliners

Next, down 5.8%, said trade has been extremely volatile, with a good Easter followed by a very disappointing first two weeks of May. The group continues to budget on the basis that first half same-store sales at Next Retail will be in the range -1% to -4%.

Land Securities shares dipped, down 3.7%, after it reported full-year profits declined and growth was slowing as expected. The real estate investment trust reported a 14 % rise in adjusted diluted net asset value.

Supermarket company J Sainsbury, down 0.1% reported a huge 42% increase in underlying profits last year to 380 million, adding it intends to retain ownership of its properties. Sales rose by 6.9% to 18.5 billion pounds.

Ex-dividend stocks were lower. Sage Group lost 1.2% and Carnival declined 1.6% as all these stocks went ex-dividend.