9:00AM U.S. stock futures turned sharply lower on extended global sell-offs and economic data.
U.S. stock markets looked poised for weaker opening Thursday, dragged down by extended sell-offs in European and Asian markets and a bigger-than-expected increase in core inflation. The U.S. Commerce Department said core CPI rose 0.3% in January, pushing inflation up 2.3%, above the 1% to 2% range favored by the Federal Reserve. Investors were also awaiting key economic data on manufacturing. The Institute for Supply Management''s index of manufacturing activity for February, which is due out after market opening, is expected to come in at 50.0, up from 49.3 last month.

Automakers are also expected to report monthly sales results. Toyota Motor’s sales (TM) are seen higher, while Ford Motor Co. (F) is expected to release another decline. In corporate news, software maker Oracle Corp. (ORCL) agreed to acquire Hyperion Solutions Corp. (HYSL) for $52 per share in cash, or $3.3 billion. Again in the merger-and-acquisition news, Motorola (MOT) shares rose 1.8% in pre-open trading after the company said Icahn filed to lift his stake in the company.

On the earnings news front, Viacom and Staples topped analyst estimates, while Ciena’s profit came in below expectations. Media conglomerate Viacom Inc. ((VIA.B)) said its Q4 profit more than tripled as revenue jumped 32%, helped by the acquisition of the DreamWorks studio. Sears Holding Corp. reported a better-than-expected Q4 profit as margins improved. Dell (DELL), The Gap (GPS) and Novell (NOVL) are due to report after the close.

In broker moves, Apple Inc. (AAPL) was upgraded by Lehman Bros. to overweight from equal weight, due to valuation. The stock slipped in the pre-open. UBS raised its rating on Bristol-Myers Squibb (BMY) to buy from neutral, citing valuation and a possible takeover approach. Dow Jones industrials futures were down 89 at 12,185.00; Nasdaq 100 futures fell 21.0 to 1,744.50 and Standard & Poor''s 500 futures were down 13.30 at 1,395.60.

Personal income and spending rose more than expected.
The Department of Commerce released its report on personal income and spending in the month of January on Thursday, showing that personal income rose at a much faster than personal spending. Both increases exceeded economist estimates. The report showed that personal income surged up 1.0 percent in January following an unrevised 0.5 percent increase in December. The increase came in well above economist estimates of an increase of about 0.3 percent. Personal spending also showed a notable increase, rising 0.5 percent in January compared to an unrevised 0.7 percent increase in the previous month. Economists had been expecting personal spending to increase by 0.4 percent.


8:30AM Asian markets mostly declined Thursday with Japan and China lower.
Asian markets finished lower on Thursday. Japanese Nikkei 225 Stock Average closed 0.86% lower at 17,453.51. The decline tracks a 515.80-point dive on Wednesday, which the biggest point decline since June 13. China shares dropped after Wednesday near 4% rebound in the Shanghai Composite with some investors selling into Wednesday recovery in the run-up to the China National People Congress. The Shanghai Composite Index ended 2.9% lower at 2,797.19.

Ping An Insurance surged 38% in its market debut on strong demand for new shares, but other financial stocks fell as funds shifted to the insurer. ICBC, China biggest lender by assets, dropped 2.75% and China Life Insurance shed 5%. In Hong Kong, the Hang Seng Index also declined 1.55% to finish at 19,346.60. Taiwan finished down 2.8% at 7,678.67 in heavy volume to close at its lowest level since Jan. 11, following Wednesday global losses when the local market was closed.

Malaysia KLSE Composite shed 1.3% to 1,180.91. Australia S&P/ASX 200 swung from early gains and closed 0.38% lower at 5,810.20, with investors taking to the sidelines on concerns of further drops in China. Markets in South Korea were closed on Thursday for a public holiday.


8:15 AM Oracle agreed to acquire rival Hyperion Solutions for $3.3 billion.
Software provider Oracle Corp. (ORCL) reportedly agreed to acquire the producer of business-intelligence software Hyperion Solutions Corp. (HYSL) in a deal worth $3.3 billion, or $52 a share. The offer price represents 21% premium over Hyperion''s closing price Wednesday of $42.84. The acquisition would be the latest in a two-year spree that Oracle has executed, with CEO Larry Ellison spending some $20 billion to ensure a steady stream of new revenue. Oracle expects that the deal will add one cent a share to fiscal 2008 earnings on an adjusted basis, and four cents a share to fiscal 2009 earnings. The deal is expected to close in April 2007. In pre-market trading, Hyperion shares traded at $51.50.


8:00AM NY-7:00PM Mumbai Sensex recovers Thursday after two-day slide.
The Sensex finished 221.46 points, or 1.71%, lower at 13,159.55. The market-breadth was initially weak but strengthened throughout the session. As 1,146 stocks advanced, 1,403 declined and only 71 were unchanged. Of the 30 stocks in the Sensex, 20 advanced, while the rest declined. The turnover on BSE was Rs 4,397.01 crore, lower than Rs 5,825.82 crore on Wednesday, while on NSE, the turnover was Rs 10,061.04 crore, lower than Rs 12,686.73 crore on Wednesday.

Economic news

The government yesterday announced software companies will also be taxed The move to tax them will not impact earnings, though, as the tax can be offset against future profits. Companies claiming tax exemption under some provisions of the Income Tax Act will have to pay an effective minimum alternate tax of 11.2%, but Indian software exporters were exempt from paying income tax for 10 years from the time they received their license, or until 2009. The proposal to levy the tax will not impact earnings as companies can take a deferred tax credit.

India exports registered a 5.5% growth to $9.65 billion in January while imports advanced by 23.24%, leaving a deficit of over $50.58 billion between April 2006 and January 2007. The trade deficit during the year-ago period was $35.13 billion, according to the Commerce Ministry.

Cement prices in some parts of India have been hiked by between 10 and 12 rupees per 50 kilogram bag from March 1, on a revision in excise duty announced in the Union Budget.

Trading highlights

New issue Indian Bank was the most-active stock with a turnover of Rs 287.50 crore followed by Reliance Industries and IFCI.

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