1:00PM European markets closed higher, lifted by miners, car makers and airlines.
European stocks finished Tuesday session in the positive, boosted by gains from carmakers, airlines and miners which were strong enough to offset a drop from U.K. property firms, drug maker Sanofi-Aventis, and Swiss bank UBS. Speculation in the mining sector that BHP Billiton and Rio Tinto are considering a bid for U.S. aluminum producer Alcoa lifted the mining sector. Rio Tinto and BHP Billiton gained about 2.2% each. Among carmakers, Porsche rallied 4%, and among airlines Ryanair Holdings gained 2.9% after it was approved for admission to the Nasdaq 100 index. On the side of the losers, shares of French drug giant Sanofi-Aventis lost 1.5% after the company reported a 5% decrease in Q4 net income. Property stocks were also lower. British Land shares fell 3.6%, Land Securities dipped 1.3% and Liberty International lost 2.7%. UBS shares lost 1.7% after the banking giant reported a 47% drop in Q4 profit. The French CAC-40 advanced 0.7% at 5,682.69, the U.K.''s FTSE 100 rose 0.5% at 6,381.80, and the German DAX 30 added 0.5% at 6,895.34.

Crude oil prices jumped above $58 after IEA forecasted strong global oil demand. Light, sweet crude March delivery rose 80 cents to $58.61 a barrel. Heating oil gained 3 cents to $1.67, while gasoline rose 4 cents to $1.5932. Natural gas jumped 10 cents to $7.324 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 $1.3011, up from $1.2962. The dollar bought 121.30 yen, down from 121.92. The British pound was quoted at $1.9424, down from $1.9470. European gold prices gained. In London, gold traded at $664.30 per troy ounce, up from $661.20. In Zurich, the precious metal traded at $661.90 per ounce, up from $661.85. Silver closed at $13.86, up from $13.55.


11:30AM U.S. stock markets rallied led by metals stocks. Nasdaq profit tripled.
Wall Street rallied, led by metals-mining stocks with Alcoa (AA: chart) rising 8% amid reports that mining companies BHP Billiton and Rio Tinto are considering bids to buy the company for $40 billion. The auto sector was given a lift by a brokerage upgrade of GM (GM: chart), sending its shares up 3%. DaimlerChrysler (DCX: chart) gained 2.7%. In earnings news, KB Home (KBH: chart) rose 1% after it swung to a loss in the Q4, citing an oversupply of new and resale homes in the second half of 2006. Nasdaq Stock Market (NDAQ: chart) said its Q4 profit tripled on robust trading volumes. The electronic equities exchange fell 9% as its bid for LSE failed. Meanwhile, Marsh & McLennan Companies Inc. (MMC: chart), the nation''s largest insurance brokerage, reported six-fold increase in quarterly profit on strong revenue growth in its insurance, risk and consulting businesses. Company’s stock lost 0.3%.

Oil service stocks advanced, benefiting from the increase by the price of oil. National Oilwell Varco (NOV: chart) rose 1.9% and Cooper Cameron (CAM: chart) added 1.1%. Shares of Grant Prideco (GRP: chart) traded up 3.2% after Banc of America upgraded its rating on the company''s stock to Buy from Neutral. Real estate investment trusts, transportation and insurance stocks were among the few declining sectors. In late morning trading, the Dow rose 63.77, or 0.51%, to 12,616.32. The Standard & Poor''s 500 index rose 5.34, or 0.37%, to 1,438.71, and the Nasdaq composite index rose 3.91, or 0.16%, to 2,454.29. Bonds were little changed after the Commerce Department reported that the trade deficit grew wider than analysts expected in December. The yield on the benchmark 10-year Treasury note was at 4.81% Tuesday, the same as late Monday.


9:45AM U.S. stocks opened higher, lifted by speculations about Alcoa buyout.
U.S. stock markets posted solid advance at opening on well-received news that Alcoa may be the focus of two separate takeover bids, an upgrade of General Motors and news of a large stock buyback by 3M Co. Alcoa (AA: chart) surged 7% on reports that BHP Billiton (BHP: chart) and Rio Tinto (RTP: chart) are considering buyout bids for the aluminum producer. GM (GM: chart) rose 3.3% after Merrill Lynch upgraded its stock, while Ford (F: chart) fell 2.4% on downgrade. 3M (MMM: chart) rose 2.6% after it announced plans to buy back up to $7 billion of its own shares.

Again on the merger-and-acquisition front, casual dining chain Applebee''s International (APPB: chart) surged 10.4% after it said it is looking into a possible sale of the company. Drugstore operator CVS Corp. (CVS: chart) dropped 1.4% after it said it increased the value of its proposed acquisition of Caremark Rx Inc. (CMX: chart), sending its shares up 2.7%.

Among companies reporting earnings news, adult entertainment company Playboy Enterprises (PLA: chart) said its Q4 earnings dipped 20% to $3.7 million, or 11 cents per share, versus $4.6 million, or 14 cents last year, missing estimates by a penny. A weak earnings report from KB Home (KBH: chart) attracted little attention. The homebuilder said it swung to a quarterly loss as the recent housing slowdown forced the homebuilder to offer price concessions and sales incentives. However, the stock rose 2.4%. In early morning trading, the Dow Jones industrial average rose 74.75, or 0.60%, to 12,627.30. The Standard & Poor''s 500 index rose 6.65, or 0.46%, to 1,440.02, and the Nasdaq composite index rose 13.69, or 0.56%, to 2,464.07. Bonds rose slightly after the Commerce Department reported that the trade deficit grew wider than analysts expected in December to $61.2 billion, pushing the gap to its fifth consecutive annual record in 2006. The yield on the benchmark 10-year Treasury note slipped to 4.80% from 4.81% late Monday.


9:30AM NY-2:30PM London FTSE 100 advanced Tuesday on easing inflation.
The UK market was higher on Tuesday. By mid-day, the FTSE 100 was 13.7 points higher at 6,367.1.

Advancers

Mining stocks were among the big advancers as the copper price was higher. Antofagasta gained 1.6% and BHP Billiton added 1.3%. BHP Billiton and Rio Tinto are reported to have worked out plans separately for a possible $40 billion takeover of Alcoa, one of the largest aluminium groups in the world. InterContinental Hotels Group continued to benefit from takeover talks, up a further 1.1%. Mobile operator Vodafone has been left as a buy at Nomura. The broker added that the price paid for Hutchison Essar was not as pricey as some insisted. Vodafone advanced 0.2%.

Decliners

The property group British Land declined 2.2% as it posted a fall in net asset value to 16.10 pounds, from 16.24 pounds three months ago on a weak performance from its shopping centres and a higher-than-anticipated cost of converting to a real estate investment trust. The rest of the sector declined in sympathy. Slough Estates shed 2.3%, Liberty International fell 2.1% and Land Securities Group gave up 1.6%. British Energy lost a further 2% as the power group invited potential partners to submit plans to build new nuclear power stations and announced that repairs to its existing facilities would be completed by the end of March.


9:00 AM Alcoa, General Motors and 3M led market to higher opening.
U.S. stock futures advanced on Tuesday, boosted by reports of a possible buyout bid for aluminum producer Alcoa, a buyback program announced by 3M and an upgrade of General Motors. Alcoa (AA: chart) jumped 7% on news that BHP Billiton (BHP: chart) and Rio Tinto (RTP: chart) are considering separate bids. 3M (MMM: chart) gained 1.2% after the company said it plans to buy back up to $7 billion in shares over the next two years, its biggest buyback plan ever. GM (GM: chart) gained 3.5% after Merrill Lynch upgraded the automaker to buy from sell. At the same time, Merrill downgraded auto maker Ford Motor (F: chart) to sell from neutral, citing valuation. The stock fell 2% in the pre-open.

On the earnings news front, Priceline.com shares (PCLN: chart) surged 6.4% in pre-open trading after the online travel bookings provider said quarterly earnings more than doubled. Marsh & McLennan (MMC: chart) reported better-than-expected Q4 earnings increase. In economic news, the U.S. Commerce Department said the trade deficit widened 5.3% to $61.2 billion, above the average economist estimate of $59.5 billion, as imports rose faster than exports. S&P 500 futures rose 2.10 points to 1,440.00 and Nasdaq 100 futures advanced 3.25 points 1,788.75. Dow industrial futures climbed 34 points to 12,618.

U.S. trade deficit widened 5.3% in December.
Tuesday morning, the Department of Commerce released its report on U.S. international trade in goods and services in the month of December, showing that the U.S. trade deficit widened more than economists had been expecting. The report showed that the trade deficit widened to $61.2 billion in December from $58.1 billion in November. Economists had expected the surplus to widen to $59.5 billion compared to the $58.2 billion deficit originally reported for the previous month. The wider trade deficit came as an increase in the value of imports outpaced an increase in the value of exports. The Commerce Department said that the value of imports rose 2.1 percent to $186.7 billion, while the value of exports rose 0.6 percent to $125.5 billion. An increase in the price of oil contributed to the rise in the value of imports, as the average price of a barrel of oil rose 3 percent to $53.84 in December. The price increase more than offset a 2 percent decline in the volume of imported oil and petroleum products. The report also showed that the trade deficit for the full year rose to a record $763.6 billion, representing a 6.5 percent increase from the previous record of $716.7 billion set in 2005.