1:00PM European markets closed higher, as retailers rallied.
European stocks ended Friday session on a positive note after a rally in the retail managed to offset sharp declines from some car and telecom equipment makers. J Sainsbury shares soared 14% after a trio of private-equity firms said they were considering a takeover bid of about $18 billion. Of other supermarket groups, Carrefour rose 3.5%, Casino shares rose 1.7%, William Morrison shares climbed 5.9% and Ahold added 1.3%. On the side of the losers, shares in telecom-equipment maker Ericsson slid 6% after concerns about the company''s outlook outweighed a 14% rise in Q4 net income. Automaker Renault fell 4.2% in Paris after its partly owned Nissan Motor Co. unit posted a 23% drop in Q3 profit and cut its full-year earnings outlook. Among other companies in focus, British Airways reversed from early weakness to close 1.6% higher. Shares in E.On rose 3.6% after Gas Natural withdrew its offer for Spanish utility Endesa. The U.K. FTSE 100 index closed 0.5% higher The German DAX 30 rose 0.5% and the French CAC-40 advanced 0.3%.

The U.S. dollar traded mixed against its major currency rivals. The euro was quoted at $1.2975, down from $1.3023. The dollar bought 121.11 yen, up from 120.72. The British pound was quoted at $1.9682, up from $1.9671. European gold prices declined. In London, gold traded at $644.75 per troy ounce, down from $658.29. In Zurich, the precious metal traded at $644.15 per ounce, down from $654.75. Silver closed at $13.25, down from $13.69.


11:30AM Market averages showed lackluster performance.
U.S. stocks continued to trade in a mixed fashion. In earnings-related news, Intuitive Surgical (ISRG: chart) surged 16% after reporting profit decline that came in above analyst estimates. Gannett Co. (GCI: chart), the nation''s largest newspaper publisher, reported Q4 earnings increase of 3% to $354 million, or $1.51 per share, compared to $343 million, or $1.44 a share, in the year-ago quarter. The quarterly profit exceeded analyst forecasts of earnings of $1.49 per share. Revenue increased 7.55 from $2.21 billion to $2.05 billion. Shares of Gannett rose 2.2% in morning trading. Standard Pacific (SPF: chart) helped to lead the housing sector higher, with the homebuilder posting 8% gain on strong Q1 and full-year outlook.

On the side of the losers, InfoUSA Inc. (IUSA: chart), provider of business and consumer information products, said Q4 net income rose to 20 cents a share from 15 cents a share last year on higher revenue. The stock slipped 14%. Rackable Systems (RACK: chart) dropped 18% after it said Q4 profit fell sharply, largely due to declining gross margins. Homebuilder Brookfield Homes (BHS: chart) fell 10% after it reported net income drop of $2.19 per share from $4.36 per share a year ago on 40 % revenue decrease. Internet retailer Amazon.com (AMZN: chart) fell 3.5% on lower Q4 profit and concerns about thinning profit margins. Chevron (CVX: chart) lost 1.2% on 9% profit drop.

By sector, oil and metals stocks declined, while software, semiconductors and biotechnology advanced. In late morning trading, the Dow Jones industrial average was down 8.33, or 0.07%, at 12,665.35. The Standard & Poor''s 500 index was up 1.61, or 0.11% at 1,447.55 and the Nasdaq composite index was up 6.40, or 0.26%, at 2,474.78. Bonds rose on the economic data, with the yield on the benchmark 10-year Treasury note falling to 4.82% from 4.83% late Thursday.

December factory orders rose more than expected.
The Department of Commerce released its report on factory orders in the month of December on Friday, showing that orders rose more than economists had been expecting after an upwardly revised increase for the previous month. The report showed that factory orders rose 2.4 percent in December following an upwardly revised increase of 1.2 percent in November. Economists had expected orders to increase 1.8 percent compared to the 0.9 percent increase originally reported for the previous month. The increase reflected growth in orders of both durable and non-durable goods, with orders for durable goods rising 2.9 percent while orders for non-durable goods rose 1.8 percent. The durable goods orders growth was revised down from the 3.1 percent increase reported previously. The report also showed that shipments rose 1.4 percent after a 0.2 percent increase in November, while inventories rose 0.1 percent following a 0.2 percent increase in the previous month. Subsequently, the inventories-to-shipments ratio fell to 1.22 from 1.23 in November.


9:45AM Market opened mixed on weaker-than-expected employment report.
U.S. stock markets opened mixed on Friday. Weaker-than-expected January employment report eased inflation concerns, but dragged economically-sensitive stocks on the Dow. The Labor Department report signaled employers were more cautious than anticipated in adding jobs in the new year. Shares in aluminum producer Alcoa (AA: chart) slipped 2.2%. General Motors (GM: chart) also weighed, falling 2.2% due to a big drop in January sales. In addition, Amazon (AMZN: chart) shares dropped 3.8% on concerns about thinning margins.

Among other companies in focus, Intuitive Surgical (ISRG: chart) surged 16.1% after reporting profit drop that came in above estimates. Video game publisher Electronic Arts (ERTS: chart) rose 6.3% on Q4 earnings that were well above analyst expectations. In midmorning trading Friday, the Dow Jones industrial average was down 0.32, or less than 0.01%, at 12,673.36. The Standard & Poor''s 500 index was up 2.25, or 0.16%, at 1,448.19 and the Nasdaq composite index was up 7.14, or 0.29% at 2,475.52. Bonds rose on the jobs report, with the yield on the benchmark 10-year Treasury note falling to 4.82% from 4.83% late Thursday.


9:30AM NY-2:30PM London FTSE gains on Friday on likely bid for Sainsbury.
The UK market was higher on Friday. The FTSE 100 gained 42.4 points, 0.7%, to 6,324.6 in mid-day session.

Advancers

American KKR and Blackstone and London-based CVC said they were assessing a potential bid for J Sainsbury but were at the preliminary stage. Sainsbury jumped 18.3%, boosting other retailers. William Morrison gained 6.5% as Tesco firmed 3.2%, Kingfisher added 3.8% and Marks & Spencer put on 3.3%.

Housebuilders traded higher with Redrow advancing 1.7 per cent, Persimmon higher by 1.1% and Barratt Developments 0.8%.

Imperial Tobacco shares also advanced as JP Morgan took on board the chances of a bid for the group and repeated its overweight rating on the stock. The tobacco company traded 5.6%.

British Airways shares moved higher by 1.8% on mixed third-quarter results. The airline reported a 27% drop in operating profits but its revenue advanced 0.5% from a year ago.

Decliners

Royal Dutch Shell declined 1.1% after Goldman Sachs reduced its rating on the stock from buy to neutral.

Accountancy software group Sage shed 1% after Merrill Lynch downgraded the stock from buy to neutral on valuation grounds as the shares have climbed above its price target.