4:00PM NY; 10:00PM Frankfurt; 2:30AM Mumbai - GLOBAL MARKETS

Markets in New York closed higher after rebounding in the afternoon. The second day Fed Chairman testimony continued. Median home prices fell on most metro areas around the U.S. Oil price fell on lower than expected fall in distillate inventory. Caterpillar rose on stock buyback of $7.5 billion. Guess, the apparel retailer, rose 12% on sharp rise in earnings and decision to stock split. In Europe, L’Oreal, ABB, Akzo earnings disappointed analysts. Tokyo main index in Japan closed at seven year high.

Yield on 10-year U.S. bond closed at 4.706% and the 30-year bond closed at 4.805%.

Gold increased $1.400 to close at $673.400 a troy ounce, silver gained 2.5 cents to end at $13.990 a troy ounce and copper declined $23 to close at $5,698 per metric ton.

Oil gained 1 cent to close at $58.010 a barrel and heating oil decreased 1.130 cents to finish at 162.700 cents a gallon. Natural gas advanced 9.8 cents to close at $7.339 per MMBtu. Gasoline went down 2.040 cents to end at 159.580 cents a gallon.

Asian markets closed higher as Japanese shares advanced to their highest level in almost seven years on stronger-than-expected economic-growth figures, while Hong Kong stocks soared following U.S. Fed Chairman Ben Bernanke's comments. The advancers were led by India with a gain of 2.47%, Philippines with an increase of 2.38% and Indonesia with an advance of 2.25%. The only decliner was Thailand with a loss of 0.57%. Australia gained 0.53% on strong corporate earnings and bullish overseas markets.

European markets finished mixed, holding near multiyear highs with shares of Belgian-Brazilian brewer InBev rallying on merger speculation and Reed Elsevier up on a plan to sell off a division. Markets were also supported by a deluge of earnings from Michelin, ABB, Akzo, L’Oreal and Diageo. The decliners were led by Spain with a decrease of 0.19%, Frtance with a loss of 0.09% and Netherlands with a decline of 0.06%. The advancers were U.K. with an advance of 0.19% and Switzerland with a gain of 0.07%. RTS Main index in Russia rose 0.26%.

Latin America markets closed mixed. The decliners were Mexico with a loss of 0.41% and Brazil with a decrease of 0.09%. Argentina gained 0.13%. Canada advanced 0.51% with narrow gains in every sector. Brazilian news paper reported that Anheuser Busch and InBev are exploring merger to create a global giant with 25% of the world beer market.

Market movers

Anheuser-Busch (BUD: chart), maker of Budweiser and Bud Light, shares rose more than 3% to $51.90 on the New York Stock Exchange. Anheuser-Busch's market capitalization is about $38.6 billion. A combination would create global beer giant with 25% of market share with InBev's focus on Latin America, Canada and Europe complementing Anheuser-Busch as the dominant producer in the stagnant U.S. market and big player in Mexico.

2:30PM NY, U.S. Market Movers
Avici Systems jumps 14%, Ness Technologies expects higher earnings and Baidu lost 10.7%.

Armstrong World Industries (AWI: chart), which makes flooring, ceilings and cabinets, said on Thursday it is considering its options, including a possible sale of the company. Its shares rose more than 11% on the New York Stock Exchange, pushing company’s market value to $2.1 billion, based on its most current count of shares outstanding.

Avici Systems Inc. (AVCI: chart), jumping 14% after the networking-equipment company's fourth-quarter results blew past Wall Street's expectation. The company earned $3 million, or 21 cents per share, on revenue of $15.9 million. Excluding items, Avici earned $4 million, or 28 cents a share. Analysts polled by Thomson First Call expected earnings of 5 cents per share on revenue of $13.1 million. During the year-earlier period, the company posted a loss of $8.6 million, or 67 cents per share, on revenue of $6.1 million. Shares were trading up $1.09 to $8.63.

Capella Education (CPLA: chart) said its fourth-quarter net profit increased to $5.7 million, or 39 cents per share, from $3 million, or 25 cents per share. Revenue at the online education services group rose 20.7% to $50.6 million in the quarter. The company said growth was driven by a rise in enrollments, with the number of active learners rising 23% to around 18,000 for the year as a whole. Shares went up 7.8%.

Chordiant Software Inc. (CHRD: chart), maker of customer relationship software for businesses, reported a fiscal first-quarter net loss of $10.7 million, or 14 cents a share, versus a net loss of $1.77 million, or 2 cents per share, last year. Excluding certain items, the company posted a loss of $2.7 million, or 3 cents per share. Revenue climbed to $22.9 million against $22.6 million in the same period a year earlier. Shares climbed 12.7%.

FTI Consulting Inc. (FCN: chart), provides problem-solving consulting and technology services to major corporations, financial institutions, and law firms, said that its fourth-quarter net earnings declined to $17.4 million, or 42 cents per share compared with $18.3 million, or 46 cents per share, in the year-ago period. Revenue climbed to $216.8 million versus $165.7 million in the same period a year earlier. Shares were up 15%.

Guess Inc. (GES: chart) surged 10% after the clothing seller posted strong fourth-quarter results, set a stock split and declared its first dividend. For the fourth quarter, the company earned $45.7 million, or 99 cents a share, on revenue of $346.4 million. Analysts expected earnings of 93 cents a share and revenue of $330.1 million. During the year-earlier period, the company earned $25.8 million, or 57 cents a share, on revenue of $276.6 million. Shares were trading up $7.33 to $81.91.

Laboratory Corp. of America Holdings (LH: chart), laboratory testing provider, said that its fourth-quarter earnings rose 17% to $103.7 million, or 81 cents per share compared with $88.9 million, or 64 cents per share, a year earlier. The Burlington, N.C., provider of clinical laboratory services said that exluding $7.7 million in restructuring charges and other charges related to the retirement of the company's chief executive, the company earned $108.4 million, or 85 cents per share, compared with $93.1 million, or 67 cents per share, a year earlier. Revenue for the quarter climbed 9.3% to $898.6 million versus $822.3 million a year ago. Shares climbed 7.3%.

Medimmune (MEDI: chart) climbed Thursday after company-sponsored research showed that the FluMist nasal-spray flu vaccine outperformed a traditional flu shot in young children. Shares rose 7%.

Ness Technologies Inc. (NSTC: chart), which provides information technology services, said its expects earnings of $1 to $1.05 per share in 2007. The company also said it anticipates revenue of $560 million to $570 million. Last year, the company earned 82 cents per share on revenue of $474.3 million. In the first quarter, Ness looks for earnings of 21 cents to 23 cents per share and revenue of $123 million to $129 million. Ness shares rose 7.2%.