1:00PM European markets closed higher, led by airlines
European stocks closed higher, led by airline stocks. Moves were limited as European investors awaited the interest-rate decision and commentary from the Federal Reserve. Airline companies attracted the most attention, with Alitalia rising 3.8% after the Italian government said it received 11 bid offers. Air France-KLM shares gained 6.7%, as the company didn’t launch a bid for Alitalia. British Airways shares added 2.4%, a day after the airline averted a strike by cabin crew. Siemens AG shares rose 4% after it was upgraded to buy from neutral at Merrill Lynch. On the side of the losers, Porsche lost 0.8% after Deutsche Bank downgraded the automaker to hold from buy. The German DAX 30 rose 0.93%, the French CAC 40 gained 0.46%, while the U.K. FTSE 100 added 0.03%.

Crude oil prices climbed $1, with traders focused on weather forecasts and OPEC production cuts. Light, sweet crude March delivery rose $1.16 to $55.17 a barrel. Heating oil added 3 cents to $1.5805 a gallon, while gasoline gained 4 cents to $1.4825. Natural gas added 41 cents to $7.346 per 1,000 cubic feet. London Brent climbed $1.15 to $54.83. The U.S. dollar traded mixed against its major currency rivals. The euro was quoted at $1.2954, down from $1.2956. The dollar bought 121.60 yen, down from 121.94. The British pound was quoted at $1.9615, up from $1.9595. European gold prices declined. In London, gold traded at $645.75 per troy ounce, down from $646.93. In Zurich, the precious metal traded at $643.45 per ounce, down from $644.15. Silver closed at $13.33, up from $13.30.


11:30AM U.S. stock averages traded modestly higher ahead of Fed Reserve’s decision.
U.S. stocks turned modestly higher, with investors cautious before the Fed Reserve''s decision on interest rates. Positive news on the economic front generated some positive mood. The Conference Board said consumer confidence rose modestly in January as the job market remained strong. Consumer Confidence Index met analyst expectations, edging up to 110.3 in January from a revised 110.0 in December.

The Dow reversed from earlier weakness, although 3M (MMM: chart) dropped 4.4%, Procter & Gamble (PG: chart) fell 1.1%, and Merck (MRK: chart) lost 1% on quarterly results. Photography and imaging company Getty Images (GYI: chart) was a notable gainer, rising 8%, despite 29% profit drop in Q4 on restructuring and other costs. The company earned 50 cents per share, down from 64 cents last year. Excluding items, profit beat estimates.

In the technology sector, Motorola Inc. (MOT: chart) rallied 6.2% % after the company said that the wealthy investor Carl Icahn who owns a 1.4% stake in the company is seeking nomination to the mobile phone maker''s board of directors. At the same time, shares in Microsoft (MSFT: chart) fell 0.6%, even after the software giant launched its new operating system Vista in 70 countries. The launch is expected to give a lift to the technology sector.

The oil service sector advanced, as oil prices rebounded after a sharp drop Monday. A barrel of light sweet crude rose $1.10 to $55.11. Consequently, shares in airline companies moved to the downside. In late morning trading, the Dow rose 22.28, or 0.18%, to 12,513.06. The S&P 500 index was up 2.94, or 0.21%, at 1,423.56, and the Nasdaq composite index rose 2.82, or 0.12%, to 2,443.91. The bond market remained mostly unchanged. The yield on the benchmark 10-year Treasury note was unchanged at 4.87% from late Monday.

Consumer confidence index inched up in January.
The Conference Board released its report on consumer confidence in the month of January on Tuesday, showing that confidence improved slightly compared to the previous month. The consumer confidence index came in just above economist estimates. The report showed that the consumer confidence index edged up to 110.03 in January from an upwardly revised 110.0 in December. Economists had expected the index to come in at 110.0 compared to the 109.0 originally reported for the previous month. The Conference Board said that the present situation index increased to 133.9 in January from 130.5 in December, as those saying jobs are ‘hard to get’ fell to 19.7 percent while those saying jobs are ‘plentiful’ rose to 29.9 percent. At the same time, the report also showed that the expectations index fell to 94.5 in January from 96.3 in December. Those expecting business conditions to worsen edged up to 8.0 percent, while those expecting conditions to get better decreased to 16.2 percent.


10:00AM NY-9:00PM Mumbai Tata Steel tops estimates, ONGS net up 20%.
Tata Steel, resource company, has reported a Q3 consolidated net profit increase of 27.3% to Rs 1,054.65 crore, or Rs 18.19 per share, higher than Rs 828.51 crore, or Rs14.93 per share for the same period the previous year. Net revenues advanced 18.86% to Rs 5,971.15 crore, up from Rs 5,023.69 crore for the same period the previous year. Revenues from the steel business rose 20.44% compared with same time a year ago and operating profits advanced 26.58%. Total income of the group advanced to Rs 6,072.28 crore for Q3, while it was Rs 5,082.38 crore in the same period a year ago.

Oil and Natural Gas Corp. Ltd., oil company, announced its Q3 net profit rose 20%, topping forecasts of 6% rise in net profit. The oil and gas producer reported net profit rose to Rs 4,668.310 crore from 3,887.76 crore a year ago. ONGC produces 80% of the oil and gas in India. Total income rose to Rs 16,269.01 crore from Rs 13,038.01 crore for the same time the previous year. The governement demands that ONGC sell crude at discount to refiners to keep the cost of fuel down.

The Tata Power Company Limited, power company, reported that Q3 profit after tax as well as net profits after tax stood at Rs. 279.90 crores on revenues of Rs. 1200.51 crores, compared to Rs. 227.65 crores and Rs. 1224.77 crores for the same period the previous year respectively. Sales Volume during Q3 rose by 9.05% at 3655 MUs, while units sold in the Mumbai license area advanced by 5.44%.

Gokaldas Exports Limited, manufacturer of ready-made fashion garments, has reported 13.42% rise in net profit for Q3 compared to he same time the previous year. Total revenues in Q3 advanced 14.69% and stood at Rs 245.83 crore against Rs 241.35 crore in the same period a year ago. Although interest costs were higher and stood at Rs 5.48 crore in Q3 against Rs 3.68 crore for the comparable period a year ago, the company announced that this was on account of borrowing under the textile upgradation fund of Rs 60 crore.


9:45AM Market opened mixed. Merck and 3M weighed on the Dow.
Wall Street saw a mixed performance at opening on Tuesday, reflecting cautiousness ahead of the Fed Reserve''s decision on interest rates and notable declines for three blue-chip companies. The Dow was pressured by 6% decline for 3M Co. (MMM: chart) on a disappointing profit outlook. Merck (MRK: chart) also weighed on the blue-chip average, falling even after its earnings, excluding special items, matched forecasts. Merck & Co. said that its Q4 profit plunged 58% to $473.9 million, or 22 cents per share, down from $1.12 billion, or 51 cents per share a year ago. The drugmaker’s profit dropped, due to charges for restructuring costs, an acquisition and increased legal reserves, mainly for its withdrawn painkiller VioxxMerck. Fellow drug maker Wyeth (WYE: chart) lost1.9% amid disappointing earnings. Elsewhere, Colgate-Palmolive (CL: chart), fell 1%, despite a better-than-forecast profit increase.

Similarly Procter & Gamble (PG: chart) fell 1.4%, despite raising its earnings outlook. Investors weighed its organic sales growth, which came in at the lower end of its guidance. On the side of the gainers, photography and imaging company Getty Images Inc. (GYI: chart) rose 8%, despite a Q4 profit drop on restructuring and other costs. The company earned $30.3 million, or 50 cents per share, down 29% from $42.5 million, or 64 cents per share in the prior year. Excluding special items, the company earned $39.5 million, or 66 cents per share. Sales rose 10% to $203.5 million from $185.8 million. Analysts had expected earnings of 56 cents per share on sales of $195.9 million. The Dow fell 9.93, or 0.08%, to 12,480.85. The S&P 500 index was up 1.26, or 0.09%, to 1,421.88, and the Nasdaq composite index fell 3.08, or 0.13%, to 2,438.01. The bond market remained mostly unchanged as investors awaited a decision from the Fed Reserve on short-term interest. Bonds were mostly unchanged, with the yield on the benchmark 10-year Treasury note flat at 4.87% from late Monday.


9:30AM NY-2:30PM London FTSE declines on weak performance by miners.
The FTSE 100 in London declined 18.6 points to 6,221.5 by mid-day on Tuesday.

Advancers

News that Sanofi-Aventis of France and Bristol-Myers Squibb of the US were in talks over a possible merger lifted the pharmaceutical sector. AstraZeneca gained 0.8%. British Airways advanced 1.6% on continued relief that the proposed strike has been called off.