U.S. MARKET AVERAGES

Stock markets opened lower on profit-taking due to concerns over the lagging automotive and housing sectors. Disappointing forecasts from auto parts maker Visteon Corp. dragged down the auto sector, while investors worried about a softening housing market after luxury home builder Toll Brothers announced record fourth-quarter revenue, but lower sales and profit guidance for the following year.

The housing sector has sharply declined by 4.7%, hurt by the lowered guidance from Toll Brothers (TOL). The tech sector is weaker as well, with networking and disk drive stocks moving lower.

With its modest advance, the gold sector is one of the few sectors moving to the upside. The drug and biotech sectors are sitting near the flat line.

Energy stocks have rebounded from early losses and the group is now in the positive territory, with modest gains in the oil and oil service sectors.

Abatix (ABIX) is one of the biggest percentage gainers in the early going, climbing by 34% on third-quarter earnings increase.

NetEase.com (NTES) is one of the morning's worst performers on guidance included in its quarterly profit statement. The stock is currently down 20%.

On the corporate news front, Linens ''n Things (LIN) announced that it has agreed to be acquired for $1.3 billion by a newly-formed company controlled by Apollo Management, L.P. Thedeal will likely close in the first or early second quarter of 2006.

Lehman Brothers lowered its rating on LSI Logic Corp. (LSI), a maker of microchips used in products like DVD recorders, to ‘equal-weight’ from ‘overweight’.

In the first hour of trading, the Dow Jones industrial average fell 53.94, or 0.51%. The Standard & Poor''s 500 index dropped 4.15, or 0.34%, and the Nasdaq composite index lost 6.96, or 0.32%.

Bonds rose as stocks slipped, with the yield on the 10-year Treasury note falling to 4.59% from 4.63% late Monday.

MOVERS AND SHAKERS

Investor Icahn revealed that he and affiliates control 9.3% of Fairmont Hotels & Resorts (FHR). Icahn urged Fairmont to seek strategic options, including a sale of the company or some of its hotels and other assets, declaration of a dividend, or execution of a stock buyback. Fairmont gained 3.5%.

Toll Brothers (TOL) lowered its forecast for homes to be delivered in 2006, pointing a harder regulatory environment, community-opening delays and softening demand in some markets. The company’s stock dropped almost 11%.

The aluminum producer Alcan (AL) reported a decrease in third-quarter net income, because of seasonal lull and the loss of some product categories due to the spinoff of its ex-unit Novellis (NVL). Alcan’s stock dropped 0.3%.

The fast food retailer McDonald''s (MCD) announced its worldwide same-store sales increased 3.4% in October, with U.S. same-store sales achieved a 3% growth. McDonald''s stock is likely to gain today.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mixed with the Nikkei falling 0.2% on declining oil prices which sent oil companies lower and on banking shares sell-off. Awaited economic data later in the week also weighed on sentiment. Among the regional gainers, Hong Kong’s Hang Seng rose 0.3%, South Korea’s Kospi gained 0.7%, and Australia’s All Ordinaries climbed 0.9%.

European markets advanced at mid-day on the back of strong automakers, boosted by weaker oil and rising mining stocks, supported by a rally in Japanese steel shares. Market was also given a lift by solid corporate earnings with Sanofi-Aventis one of the leading gainers. The German DAX 30 added 0.1%, the French CAC 40 gained 0.5%, and London’s FTSE 100 rose 0.3%. The euro was at a two-year low vs. the dollar, at $1.1725.

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