U.S. MARKET AVERAGES

The morning trading hours are showing market averages trading in a lackluster fashion. The lack of direction in averages, low trading volume, resurging oil price, and lower read on the productivity data are all contributing to a very quiet and boring trading session so far.

Energy, steel, and select stocks in tech sectors are trading higher. Steel companies are set for 20% prices hike. Nucor, U.S. Steel, and other metal and mining stocks are trading higher on this news. Telecommunication stocks are trading lower. Casino stocks are trading higher led by MGM, Harrah’s and Las Vegas Sands.

Separately shares of Altera lost 5% on lower gross margin forecast. Shares of Electronics for Imaging, Marchex, Baidu.com and Google are generating positive moves during the day.

Energy stocks, especially stocks in refining and gas exploration are trading higher as oil prices are up close to 0.5%. Valero, Tesoro, and Chesapeake Energy are up.

MOVERS AND SHAKERS

Hewlett-Packard rose 2% after UBS raised its view on the company to buy from neutral.

Albertson's Inc. (ABS: chart) is expected to fall due to its earnings from continuing operations that fell short of analysts' estimates. On Tuesday, the stock rose 1.5%.

Alnylam Pharmaceuticals Inc. (ALNY: chart) was up 30% after Swiss drugmaker Novartis agreed to buy a 19.9% stake in the company.

Ventiv Health (VTIV: chart) plans to buy privately-held healthcare marketing firm inChord Communications. The company advanced 1.2% on Wednesday.

Time Warner Inc. (TWX: chart) rose 0.8% on Wednesday after receiving a vote of confidence from the world's fifth-richest man, Saudi Prince Alwaleed bin Talal, who is also an investor in the company.

Genentech Inc. (DNA: chart) was down 1.4% in pre-market trading after Friedman Billings Ramsey downgraded the company to market perform from outperform.

Yum Brands (YUM: chart) rose 1.9% after it was upgraded by UBS and Bear Sterns to buy from neutral.


ECONOMIC NEWS

The Department of Labor released a revised 2Q productivity report, showing 1.8% growth from originally reported 2.2%, compared with 3.2% in the firs quarter. Economists had expected a downward revision of 2.1%.

The downward revision reflected smaller than previously reported growth in productivity in the manufacturing sector. The report showed that productivity growth in the manufacturing sector was revised down to 3.6 percent from the 4.1 percent growth previously reported.

The report also showed that unit labor costs rose by 2.5 percent in the second quarter, up from the 2.2 percent growth reported for the first quarter. Economists had expected a more modest increase of about 1.5 percent.


INTERNATIONAL MARKET NEWS