10:30AM New York – U.S. stocks fell in the first hour of trading on larger than expected losses at UBS and Fannie Mae.

Losses and Fannie Mae and UBS dragged financials and broader market averages lower.

UBS reported first quarter net loss of SFr11.54 billion compared to net income of 3.03 billion a year ago. The Swiss bank also said that it will sell $15 billion of portfolio with subprime and Alt A assets to Blackrock.

UBS will also eliminate 2,600 investment bank jobs in New York and London and rest of the 5,500 jobs will be eliminated in the next twelve months.

UBS stock (UBS) in New York trading fell $1 to $33.34 in the first hour of trading.

Fannie Mae stock (FNM) fell 28 cents to $28.02 after it reported a larger than estimated loss, eliminated dividend and a plan to raise $6 billion.

Fannie Mae reported first quarter net loss of $2.2 billion or $2.57 per share compared to $961 million or 85 cents per share. The largest mortgage lender reported a loss of $3.56 billion or $3.80 per share in the fourth quarter.

The battered lender also announced plans to raise $6 billion through public offering of common and preferred stocks. Fannie Mae after the offering will be able to reduce its directed capital surplus requirement under the supervision of OFHEO to 15% and after September 2008 to 10%. Fannie will also lower its quarterly dividend from the third quarter to 25 cents and save $390 million annually.

Anadarko Petroleum Corporation., an oil and gas exploration and production company said revenue fell to $2.9 billion, decreased 83% or from $5.2 billion a year ago. Net income totaled $286 million, or $0.61 per share diluted, totaled $237 million, or $0.50 per share a year ago.

Anadarko stock (APC) rose $6.83 to $74.98.

Assisted Living Concepts, Inc., operate 208 assisted living residences in 17 states in the United States said first quarter of 2008 revenues increased 4.7% to $60.2 million from $57.5 million in the same period of a year ago. Net income in the quarter was $4.1 million or $0.06 earnings per share as compared to $0.07 per share for the first quarter of 2007.

Assisted Living stock (ALC) fell 15 cents to $6.97.

Asian markets review

In Hong Kong Hang Seng index increased 78.18 or 0.30% closed to 26,262.13. In Australia ASX 200 index lower 28.90 or 0.50% to close 5,701.40. In Malaysia KL Composite index increased 1.48 or 0.12% closed to 1,276.09. Markets in Tokyo were closed today.

In South Korea Kospi Index increased 10.79 or 0.58% to close at 1,859.06, in Thailand SET index closed higher 2.68 or 0.32% to 845.83 and Indonesia JSE Index edged decreased 16.16 or 0.68% to 2,371.83. Sensex index in India decreased 117.89 or 0.67% to 17,373.01.