9:45AM U.S. markets opened lower on profit taking ahead of economic data.
U.S. stocks opened lower on Thursday, with investors taking profit after recent rally ahead of data on leading economic indicators. Wall Street also awaited a speech by the Fed Reserve Chairman Ben Bernanke that could provide clues to whether problems with subprime mortgage loans could affect the broader economy. An increase by the oil price also weighed on market sentiment, as light sweet crude rose 47 cents to $63.02 on the Nymex.

Merger-and-acquisition news failed to lift market sentiment. Alliance Data Systems (ADS: chart) surged 26% after the provider of transaction, credit and marketing services agreed to be acquired by Blackstone Group in a deal worth $7.8 billion. The private-equity firm is paying $81.75 a share, a 30% premium to Wednesday''s closing price of Alliance Data, including debt assumption. In other deal news, Acxiom (ACXM: chart) surged 16% after the company agreed late Wednesday to be acquired by Silver Lake and ValueAct Capital for $3 billion, or $27.10 per share in cash, including the assumption of $756 million in debt.

On the earnings news front, J.C. Penney Co. (JCP: chart) rose 4.5% after it posted a 13% increase in Q1 profit that fell slightly below analyst estimates. The retailer also raised its profit outlook for the year. Hewlett-Packard (HPQ: chart) posted Q2 results that included an extra $3 billion in sales. The Dow Jones industrial average was down 18.04 points, or 0.13%, at 13,469.49. The Standard & Poor''s 500 Index was down 2.11 points, or 0.14%, at 1,512.03. The Nasdaq Composite Index was down 2.75 points, or 0.11%, at 2,544.67.


9:30AM The FTSE 100 trades higher Thursday on oil stocks and deal talks.

The FTSE 100 in London added 12 points, or 0.2%, to 6,571.9 in lunchtime exchanges.

Advancers

The oil sector led the advance in London. Royal Dutch Shell rallied 2.5 per cent, as crude prices climbed towards $69 a barrel. BP was up 1.4 per cent and BG Group added 0.5 per cent.

Prudential advanced 1% on rumours that it may be broken up. Mark Tucker, chief executive of the insurer, is expected to come under pressure at the annual meeting of the company today to address calls to break up the business. Ratings agency Moody''s put a negative outlook on the UK arm.

Old Mutual gained after Deutsche Bank upgraded the insurer from hold to buy and its price target. It traded 2.5 per cent higher.

Credit information group Experian surged 2.4 per cent on reports that it could be a potential bid target after US peer Acxiom Corp agreed to be bought for $3 billion.

Emap shares were 6.2 per cent higher after the media group said that Tom Moloney was to resign as chief executive and step aside from the board by mutual agreement.

Decliners

BT Group lost 2.1 per cent after it reported fourth quarter results, largely in line with expectations. The company also announced details of a 2.5 billion pound share buyback. Underlying earnings for the three months to 31 March were up 3% on revenue 3% higher.

InterContinental Hotels shares declined tracking a strong rally in the previous session on renewed talk of bid interest. The stock shed 2 per cent.


9:00AM Stock futures pointed to a lower opening.
U.S. stock futures declined Thursday following solid gains in the previous session. Market sentiment was hurt by profit taking amid expectations for a quiet day of economic news. Before the opening bell, the Labor Department said that U.S. initial jobless claims fell for a fifth-straight week.

In earnings news, Hewlett-Packard (HPQ: chart) gained 1.7% in the pre-open after it posted Q2 results that included well-received extra $3 billion in sales. J.C. Penney Co. (JCP: chart) reported a higher Q1 profit to $238 million, or $1.04 a share, up from $210 million, or 89 cents a share a year earlier, coming in sligktly above a profit of $1.03 a share. The quarterly results were attributed to private-label brands which helped margins. The department store operator also lifted its full-year earnings forecast.

In other corporarte news, Sun Microsystems (SUNW: chart) rose 3.3% after announcing its board approved a buyback of up to $3 billion in outstanding shares. BT Group (BT: chart) announced a buyback of nearly $5 billion along weith its Q4 profit. Acxiom Corp.(ACXM: chart), an information technology company, agreed to be bought in a deal worth $2.24 billion by private equity firms Silver Lake Partners and ValueAct Capital. The deal represents more than a 14% premium over Acxiom''s closing price Wednesday. S&P 500 futures fell 1.3 points at 1,516.70 and Nasdaq 100 futures fell 1.5 points at 1,899.75. Dow industrial futures declined 18 points.


8:30AM Asian markets gain Thursday, while Japan finishes lower.