11:30AM Market averages traded mixed. Bear Stearns laid off Co-President Spector.

U.S. stock averages were volatile Monday, reflecting nervousness about credit markets and the impact of subprime mortgages on financial institutions.

Bear Stearns Cos. (BSC: chart) laid off Co-President Warren Spector, due to credit-market weakness and decreasing investor confidence at the second-biggest underwriter of securities tied to the slumping U.S. housing market. The firm has lost 35% of its stock market value this year and analysts started to question leadership at the company. The board of the U.S. fifth-biggest securities firm agreed that 57-year-old Alan D. Schwartz will become sole president.

Further in corporate news, Chrysler’s new owner Cerberus Capital Management appointed Robert L. Nardelli a Chief Executive Officer of the troubled carmaker, due to his outstanding expertise. He is expected to help revitalize Chrysler which was sold by DaimlerChrysler because of huge losses at the U.S. company. Nardelli was a chief executive of Home Depot (HD: chart) before being ousted amid shareholder discontent over his enormous pay package.

The Dow traded in the positive, supported by gains in the shares of major companies. Merck (MRK: chart) rose 1.5% after Cowen & Co upgraded the stock, while Wal-Mart (WMT: chart) added 1.2% on news it is planning to set up a joint business-to-business venture in India. Altria Group (MO: chart) also gave a boost, rising 1.4%.

Among other notable movers, E-Trade Financial (ETFC: chart) was the heaviest drag on the Nasdaq, falling 5.6%. In late morning trading, the Dow Jones industrial average rose 26.91, or 0.20%, to 13,208.82. The Standard & Poor's 500 index fell 2.35, or 0.16%, to 1,430.71. The Nasdaq composite index fell 18.32, or 0.73%, to 2,492.93.


11:00AM New York, 8:00PM Mumbai – Sensex in India declines dragged by Volatility in New York trading.

Sensex plunged 235 points or 1.55% to 14,903.03 recovered from the loss of 3% at the worst. In the broader market 1,486 stocks declined, 1,151 increased, and 70 remained unchanged. Of the 30 stock in the index, 23 declined and 7 gained.

Wal-Mart, American discount retailing giant, and Bharti Group have signed agreement to build retail store network in India. Bharti will own and operate retail stores and Wal-Mart will manage supply chain. The joint venture is planning to open its first store by the end of the year 2008.

Banks, real estate, software exporters, and steel companies declined in the sell-off. The sharp decline in the index was prompted by late evening sell-off in New York trading followed through in the morning trading across Asia.

Real estate stocks led the decliners of all the heavily traded stocks on the exchange. Unitech fell 3% to 521 rupees, DLF declined 3.4% to 581 rupees, and Indiabulls Real Estate dropped 3%. Orbit Corp surged 8% to 396.65 rupees on the speculation that Reliance Retail and JSW Steel are bidding for company land holdings worth for as much as 800 crore rupees.

Industrial Finance Corporation of India soared 5% to 63.70 rupees after the weekend board meeting. The company has agreed to issue new shares and sell 26% stake in the company to a strategic investor.

JSW Steel plunged 5% to 645.50 rupees on the news that the company is planning stock offering of $250 million in international debt markets and $200 million in equity offering. The company has also arranged credit line of $400 million. The company plans to increase capital base of 3,400 crore rupees or $850 million.

Government controlled Hindustan Copper jumped 5% to 103.95 on the news that Minstry of Mines is likely to agree to a company restructuring that does not involve additional cash fusion from the government. The restructuring will eliminate accumulated losses and exchange debt and accrued interest for equity in the company. The company plans to open between 7 to 10 supermarket stores in smaller cities away from four largest metropolises.

TRF jumped 3.9% to 1,000 rupees after the company received an order for 115 crore rupees iron ore mining project in Chattisgarh State.

Nalco government controlled aluminum company, increased 1.9% to 256 rupees on the news that Coal Authority of India and Indian Railways have agreed to supply coal to cover recent shortages.

GMR Infrastructure jumped 0.9% to 939 rupees on the news that the company and Tamil Nadu Industrial Development Corporation have to agreed to explore a development of economic zone in Krishnagiri District.


10:00AM New York, 2:00PM London – European markets traded lower on the fall out from the U.S. mortgage bonds losses and weakness in Asian trading.