2:20PM Benihana, Japanese restaurant chain dropped 25%.
Benihana, Inc. (BNHN), operator of teppanyaki-style Japanese restaurants, saw its shares decline after it cut its earnings outlook Thursday after the close. The company now expects Q4 earnings of 31 cents to 33 cents a share. The previous target was 34 cents to 36 cents a share. Analysts, on average, had been expecting forecasted earnings of 37 cents. The stock declined 24% in early afternoon trading.

A loss in operating profits arose from restaurants that were temporarily closed for renovations for 25 weeks. The company also said its accelerated renovation and revitalization program decision had impacted with more immediate and significant charges than previously planned. Benihana said that as its new design implementations get underway in 2007, it anticipates a loss of 175 to 200 lost restaurant operating weeks and charges plus ongoing expenditures for the locations under construction at $1.5 million to $1.8 million. The company said capital expenditures of the program will cost approximately $2 million per unit with overall earnings affected by 33 cents to 39 cents per share for 2007.

Hibbett Sporting Goods, Inc. (HIBB) reported Q1 diluted earnings of 35 cents a share up from 31 cents a year ago with revenues of $126.9 million up from $114.8 million in the year-earlier period. On average, analysts had expected earnings of 35 cents and revenues of $131 million. Same-store sales dropped 0.07% for the quarter. Net sales for Q1 increased 10.5% to $126.9 million, up from $114.8 million in the year-earlier period. Net income for Q1 increased 7.7% to $11.5 million compared with $10.7 million a year ago.

The company opened a net of 11 new stores during the first quarter. It now has 560 stores in 22 states. The company repurchased 0.5 million shares of common stock in the first quarter for a total expenditure of $15 million. Since August of 2004, the company has repurchased 3.7 million shares for a total expenditure of $81 million with $19 million left still for authorized future stock purchases.

In Q2, the company expects diluted earnings of approximately 14 cents to 16 cents a share with same-store sales increasing 1% to 2%. Full-year earnings are expected at approximately $1.08 to $1.12 per diluted share. Same-store sales are expected to increase 2% to 3%.

Rackable Systems, Inc. (RACK), a provider of high-density computer servers and high-capacity storage systems, filed its 10Q SEC report on Monday showing 23 cents diluted earnings per share, vs. a loss of 84 cents a share a year ago. The company’s stock was down 8.41% in the afternoon.


12:30PM European markets closed mostly higher.
European markets closed mostly higher. Inflation worries which have hit markets in the last two weeks were offset by gains for BNP Paribas, British Airways and a lifted bid for steel maker Arcelor. BNP Paribas climbed 3.5% on 17% first-quarter earnings rise. British Airways was the U.K. main index''s biggest riser, adding 9.1% after announcing that Q4 profit rose to 83 million from $6 billion a year ago. Arcelor climbed 9% after Mittal raised its bud 34% to nearly $33 billion. The German DAX 30 added 0.1%, the French CAC 40 rose 0.7%, while London’s FTSE 100 fell 0.3%.

Oil hovered round $68 on concerns about rising inflation and slower economic growth. Light crude fell $1.25 to $68.10 a barrel. London Brent crude shed $1.14 to $68.53. European gold continued to decline. In London the precious metal fell to $653.60 an ounce from $690.70. In Zurich gold traded at $653.50, down from $690.20. In London silver fell to $12.70 from $12.90. The dollar advanced in European trading. The euro traded at $1.2718, down from $1.2829. The dollar bought 111.95 yen, up from 110.89. The British pound stood at $$1.8723, up from $1.8908.


11:30AM Stock markets turned to lackluster trading.
The U.S. stock markets lost direction in late morning and turned to lackluster trading amid a lack of economic news and a limited amount of significant corporate news. The major averages were mixed, with the Dow and the Nasdaq posting modest losses while the S&P 500 was above the unchanged line. On Friday significant strength was shown by the semiconductor sector. The Philadelphia Semiconductor Index rose 1.9% after ending Thursday''s trading at a six-month closing low. Advanced Micro Devices (AMD) was one of the sector''s best performances, rising 9.7% on news that Dell (DELL) plans to offer AMD chips in its multi-processor servers. Intel (INTC) has moved lower on the heels of the news. Shares of Marvell Technology (MRVL) climbed 7.6% after the chip maker reported strong Q1 earnings growth.

Airline stocks posted some strength in morning trading, reflecting a considerable decrease in the price of oil, down to $68.15 a barrel. British Airways (BAB) was the most notable gainer, up 9%. The Amex Airline Index advanced 1%. At the same time, the price decrease contributed to significant weakness among energy stocks, with the Philadelphia Oil Service Index falling 1.2% while the Amex Oil Index is down 1%. Weakness in metals prices sent gold and other metal stocks lower. The price of gold steeply declined, with gold for June delivery currently down $26.40 at $654.50 an ounce. Among individual stocks, SafeNet (SFNT) posted a standout loss, with the information security company down 20.3%. The stock dropped after the company received a federal subpoena related to its granting of stocks options.

In corporate news, Mittal Steel (MT) raised its hostile bid for rival steelmaker Arcelor SA by 34% to $32.9 billion in cash and stock. Should the takeover take place, the two joined companies would have control of 10% of the world''s steel production. Arcelor rejected an earlier offer of $27 billion, but said it would consider the new bid.

10:30AM A second day of losses on India’s bourse.
Sensex in India finished 452.82 points lower, or 4%, at 10,938.61. The turnover on the BSE totaled $1.2 billion or Rs 5,036 crore. Of the thirty stocks in Sensex index, 28 stocks were down, while only 2 up. The market breadth was heavily negative with only 344 shares higher and 2,138 lower. Cipla, generic drug manufacturer, led the decliners, down 9.35% to Rs 222 on a volume of 2.2 million shares. Tata Steel plunged 6.50% to Rs 510, after the news that it posted a 14% quarterly net profit decline. IT shares also took a dip, as Wipro lost 5.50% to Rs 482, Satyam Computers, down 5.37% to Rs 678 and TCS, shedding 2% to Rs 1885. HLL declined 5.61% to Rs 244.

The banking sector also witnessed losses. State Bank of India dived 5% to Rs 863.10, following a report of a 19.8% drop in quarterly net profit. Jammu and Kashmir Bank lost 11% to Rs 370 on weak quarterly results. Automotive stocks weren’t spared either. Tata Motors edged 0.91% down to Rs 865, following the quarterly release of a net profit after tax of $100 million or Rs 458.11 crore. Earlier in the session it plunged to Rs 810 but later retraced losses as results matched market forecasts. Among the small-cap and mid-cap losers were Today’s Writing Products, 20% lower to Rs 54.05, Birla Power, down 18% to Rs 27 and Mahindra Gesco Developers, losing 15% to Rs 876.


10:00AM Stocks opened higher. Semiconductors advanced.
U.S. stocks opened higher, rebounding from the heavy sell-off which put the Nasdaq composite index in the red for 2006. The semiconductor sector was one of the best performers in the early going on Friday, rising 2.3%. The sector was lifted by news that Dell (DELL) will use chips from AMD (AMD) in some of its server products, ending Intel''s exclusivity with the computer making giant. Shares of AMD rose by 8.5%, while Dell gained 3%. On the news, Dow component Intel (INTC) dropped 1.2% to reach a new 52-week low. Other tech sectors also posted strength. The disk drive sector climbed about 1.5%, while the networking sector advanced nearly 1%. At the same time, the gold sector moved notably to the downside, down 1.6%, building on recent weakness. HMO and drug stocks showed some weakness as well.In the first hour of trading, the Dow Jones industrial average gained 13.85, or 0.12%. The Standard & Poor''s 500 index was up 2.23, or 0.18%, and the Nasdaq composite index rose 3.40, or 0.16%. Bonds trickled lower after Thursday''s surge, with the yield on the 10-year Treasury note rising to 5.07% from 5.06% late in the prior session.


9:00AM Stock futures rise, supported by Dell and AMD.
U.S. stock futures indicated a higher start of Friday session with tech shares boosted by Dell and AMD. Some traders seemed likely to turn to bargain hunting following the recent weakness, but lingering concerns about inflation and higher interest rates may keep buying interest subdued. Shares of Dell (DELL) rose 3.2% in pre-market trading after the computer maker reported Q1 earnings that fell to $762 million or 33 cents per share from $934 million or 37 cents per share in the year ago quarter. The earnings came in line with the downwardly revised guidance that the company provided last week. Shares of Advanced Micro Devices (AMD) also rose before the opening bell as Dell said that it plans to offer AMD Opteron processors in its multi-processor servers by the end of the year. Dell had previously relied on Intel (INTC) as its sole chip supplier. Intel shares fell 4.8%. Additionally, Autodesk (ADSK) and Gap (GPS) could see increased activity after the companies reported net earnings that fell year-over-year.

Autodesk Inc, (ADSK), design-software firm, reported Q1 profit dropped 36% to 20 cents a share, from 31 cents a share a year earlier on higher expenses such as those reflecting employee stock options weighing more than to offset a 23% surge in revenue. Excluding items that included $16 million of option-related expenses, the company''s profit would have risen 6.8% to 32 cents a share, up from 30 cents a share a year earlier. Revenue for Q1 rose to $436 million from $355.1 million amid strong sales of new software seats and subscriptions. The company beat analysts’ forecasts for a profit of 31 cents a share before option expenses.