11:30AM Market averages traded lower. Banks and insurers traded mixed. Luminent plunged 80%.

U.S. market averages continued to trade lower, reflecting reports of increased Q2 labor costs and lower-than-forecast productivity, as well as cautiousness ahead of the Fed Reserve's interest-rate decision.

Shares of major U.S. banks and brokerage firms traded mixed. Insurer Assurant (AIZ: chart) advanced 3.5% after Merrill Lynch upgraded its stock to buy. At the same time, Luminent Mortgage Capital (LUM: chart) plunged 80% after it was cut to sell from neutral by UBS. Hedge fund Blackstone (BX: chart) gained 1.8% after Lehman Bros. gave it an overweight rating.

On the earnings news front, Tyco International (TYC: chart) fell 2.5% after posting Q3 loss due to charges primarily related to a legal settlement. However, adjusted results exceeded analyst expectations. Cisco Systems (CSCO: chart) is scheduled to release earnings after the closing bell. Shares edged down 0.7%

In late morning trading, the Dow Jones industrial average was down 47.80, or 0.35%, at 13,420.98 after soaring 286 points Monday. The Standard & Poor's 500 index fell 2.66, or 0.18%, to 1,465.01, and the Nasdaq composite index fell 7.90, or 0.31%, to 2,539.43. The yield on the benchmark 10-year Treasury note was unchanged at 4.74%.


10:30AM New York, 8:00PM Mumbai – Banks, real estate, and cement stocks led a mild rise in Sensex in India.

Sensex in Mumbai trading closed up 29.74 or 0.2% to 14,932.77. Weakness and volatility in New York trading has held most global markets hostage to vagaries of traders in New York. In the broader market in Mumbai trading, 1,660 stocks gained, 1,026 declined, and 62 remained unchanged.

Of the 30 stocks in Sensex, 17 increased and 13 declined. ITC with a loss of 3% led the decliners in the index. Bajaj Auto lost 2% to 2,262 and Bhel declined 0.8% to 1,670.
Companies in power generation, cement, banks, and mobile telephony led a mild advance.

Ambuja Cements gained 0.8% to close at 127 rupees, ACC increased 0.35% to 982 rupees, and Grasim increased 0.45% to 2,910 rupees. Rising construction in Mumbai and surrounding areas in Maharashtra has prompted cement prices to jump 20% above 280 rupees.

Bharti Airtel jumped 1.9% to 877.20 rupees but Reliance Communication decreased 0.2% to 530 rupees.

Banks led the most gainers in the index. Canara Bank led the banking stocks with a gain of 4% and Kotak Mahindra, Bank of India, and Union Bank of India jumped 2%. ICICI Bank dropped 2% to 870 rupees and State Bank of India lost a fraction to close at 1,726 rupees.

Punk Llyod surged 3.6% to 287 rupees on an order to build a unit for Bharat Oman Refineries. The project with a 2-year completion date, has lifted total order backlog to 16,480 crore rupees.

Sharp decline in oil prices led state owned oil companies higher. HPCL jumped 2.4% to 256 rupees, BPLC closed 1.7% higher to 316 rupees, and Indian Oil Corp gained 1.8% to 407 rupees.

Kale Consultants soared 4% to 95 rupees on the news that the company has acquired UK based airline revenue auditing company for nearly $10 million. Zero Octa, based in the UK, has revenue of $6 million.

Real estate stocks were on the upswing after falling sharply in the previous session. Housing Development & Infrastructure soared 4%, DLF increased 1.3%, and Mahindra Gesco increased 0.7%.


09:45AM Wall Street opened lower ahead of Fed’s rate decision.

Wall Street declined at opening Tuesday amid cautiousness ahead of the Fed Reserve''s interest-rate decision and government reports which showed increased labor costs and lower-than-expected Q2 productivity. The Labor Department reported that productivity rose 1.8%, below the 2.1% gain expected by economists. Unit labor costs rose at an annual rate of 2.1%, vs. expectations of a 1.6% gain.

In corporate news, Wynn Resorts (WYNN: chart) surged 13.5% after it said its revenue more than doubled due to strength in Las Vegas and a new casino in Macau. On the side of the losers, Marsh & McLennan Cos. (MMC: chart) dropped 5.5% after the largest U.S. insurance brokerage posted a 3% increase in its Q2 profits amid growth in its risk and insurance business. The company also approved a $1.5 billion share- buyback plan.