9:45AM U.S. stocks opened lower, dragged by technology stocks.
U.S. stock averages started trading slightly lower on Friday, weighed down by a notable advance in crude oil prices. Tech stocks came under pressure on news of a patent ruling against Microsoft Corp. BEA Systems Inc. (BEAS: chart) was a notable decliner, falling 7% after the business-software developer released Q1 revenue forecast below analyst estimates. Other decliners included Dell Inc. (DELL: chart), Intel Corp. (INTC: chart) and Microsoft Corp. (MSFT: chart), each down about 1%.

Energy stocks advanced on the back of rising oil prices. Chesapeake Energy Corp. (CHK: chart) climbed 2.7% after reporting stronger-than-expected Q4 earnings. The retail sector was boosted by gains for Lowe's Cos. (LOW: chart). Shares of the home-improvement retailer jumped 6% on better-than-expected Q4 results and an upbeat forecast. Shares of network-equipment suppliers traded mixed Alcatel-Lucent (ALU: chart) rising 1% after it won a patent dispute with Microsoft. Among other telecom stocks, Alltel Corp. (AT: chart) dropped 1%, while Ericsson LM (ERIC: chart) gained 1%. Tekelec (TKLC: chart) shares fell 7.3% after the maker of telecommunications signaling devices reported a Q4 net loss of 2 cents a share, vs. a net loss of 72 cents a share last year, missing expectations of a profit of 3 cents. In the first hour of trading, the Dow Jones industrial average was down 32.05, or 0.25 percent, at 12,653.97. The Standard & Poor's 500 index was down 2.59, or 0.18%, at 1,453.79, and the Nasdaq was down 6.74, or 0.27%, at 2,518.20. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.70% from 4.73 percent late Thursday.


9:30AM FTSE 100 edges lower as Lloyds TSB and Rolls Royce drag stocks down.
The UK market was lower on Friday. By mid-day, the FTSE 100 had recovered some of its poise and was trading 10 points lower at 6370.2.

Advancers

Mining companies gained, following higher metals prices on commodities markets. Xstrata was 2.2% higher, Anglo American rose 1.3% and Rio Tinto gained 1.1%.

Oil stocks also advanced as the crude price breached $61 a barrel on a continued threat of conflict with Iran over its nuclear ambitions. BP rose 1.7% and Royal Dutch Shell was 0.6% higher.

Advertising company WPP added 1.3% as it announced its annual profits and revenues topped forecasts. Earnings before interest, taxation, depreciation and amortisation came in at just over 1 billion pounds for the first time.

Drax Group, the power generator, rose 2.6% on private equity bid talk, while Tate & Lyle added 0.1% as reports circulate it could be close to a deal to sell its European starch division.

Decliners

Lloyds TSB declined despite posting another strong performance in 2006. It saw growth in all its divisions and said it envisaged double-digit profit growth in the future. Profit before tax increased 11% to 4.24 billion pounds on interest and similar income that rose to 14.3 billion pounds from 12.5 billion pounds last year. Lloyds insurer and re-insurer Advent Capital dipped although it swung back into profit for the full year. Shares were 1.6% lower.

Shares in Rolls-Royce fell after broker UBS cut its recommendation on the stock to reduce from neutral. The broker cited concern about increased competition from rival Pratt & Whitney.


9:00 AM Market futures pointed to a lower opening on rising oil prices.
U.S. stock futures declined on Friday, pressured by recovering oil prices and patent concerns dragging down software giant Microsoft (MSFT: chart). Shares of the software maker slipped 0.5% in pre-open trade following a court ruling that it owned Alcatel-Lucent (ALU: chart) $1.52 billion over a dispute on MP3 music-related patents. In earnings news, Lowe’s Cos (LOW: chart) said its Q4 profit fell to $613 million, or 40 cents a share, from $693 million, or 43 cents a share last year, beating estimates of 37 cents a share. Net sales slipped to $10.41 billion from $10.81 billion. The company said that same-store sales fell 5.3%. For Q1, Lowe''s forecast a total sales increase of 5% to 6%, a same-store sales decline of 2% to 4%, and earnings of 49 cents to 51 cents a share.

Among other pre-market highlights, Ituit (INTU: chart), tax software firm, reported lower quarterly profit. It also agreed to sell its outsourced-payroll business. Tax preparer H&R Block (HRP: chart) said it swung to a loss in Q3, citing costs related to its mortgage business. S&P 500 futures eased 1.1 points at 1,458.10 and Nasdaq 100 futures dropped 2.75 points at 1,851.50. Dow industrial futures dropped 7 points.


8:30AM Asian markets ended mostly higher on Friday with Japan up, HK down.
Asian markets finished mostly higher on Friday. Japanese Nikkei Index finished 0.4% higher at 18,188. Shares closed higher on buying on the increase in commodity prices, although Sanyo Electric plummeted 21% on a report that it is being probed for grossly misrepresenting losses in its past earnings results. Higher prices for base commodities supported trading house Mitsubishi Corp. to end 3% up. Utility stocks advanced after a recent sell-off in the sector began to make their dividend yields look more reasonable. Kansai Electric Power jumped 2.3%.

Bucking the uptrend, the Hong Kong Hang Seng Index closed 0.5% lower at 20,712. Profit-taking weighed on stocks after recent increases, but Huiyuan Juice rallied 68% on its debut. Large-cap HSBC declined for a fourth day, down 0.4% despite the company saying the head of its North American operations Bobby Mehta has stepped down.

South Korean Kospi Index advanced 0.3% to 1,470. Gains were led by brokerages and builders. Brokerage stocks advanced on increasing trading volume and expectation of annual dividend payouts, which are due to be paid starting March. Samsung Securities gained 4.4% and Woori Investment & Securities added 3.9%.

Australian S&P/ASX 200 increased 0.3% to close at 6,036. Takeover talks sent the market to another record high, while upbeat profits from leading companies also helped demand. Coles soared 8.6%. Other large-caps in demand included QBE Insurance, which advanced 3%. Bolnisi Gold surged 6.5% on recent gains in gold prices and other gold stocks. Markets in China and Taiwan were closed for the Lunar New Year holiday.