Among stocks driven by analyst comments, chipmaker Intel (INTC: chart) fell 1.2% and American Express (AXP: chart) dropped 2.4%, both weighing the blue-chip average down. On the positive side, United Technologies (UTX)) rose 1% after a broker upgraded the industrial conglomerate, citing long-term margin improvement at its Carrier air conditioner and Sikorsky helicopter units.

The Dow Jones was down 12.03 points, or 0.09%, at 13,412.85. The Standard & Poor's 500) was down 2.62 points, or 0.18%, at 1,481.33. The Nasdaq Composite fell 5.23 points, or 0.20%, at 2,595.83. The benchmark 10-year Treasury note fell 4/32 at 102 3/32, its yield at 4.49%.

Business inventories rose 0.5% in July.

The Department of Commerce released its report on business inventories and sales in the month of July, showing that inventories increased by more than economists had expected and sales rebounded. The report showed that business inventories rose 0.5 percent in July following an unrevised 0.4 percent increase in June. The increase exceeded the expectations of economists, who had expected an increase of about 0.3 percent.

The bigger than expected increase in inventories was largely due to a notable increase in retailers' inventories, which rose 1.0 percent in July after a 0.6 percent increase in the previous month. Inventories of both manufacturers and merchant wholesalers increased by 0.2 percent. The Commerce Department also said that sales jumped 1.1 percent in July after falling 0.3 percent in June. A 2.6 percent increase in sales by manufacturers contributed to the rebound. Sales by retailers and wholesalers rose 0.5 percent and 0.1 percent, respectively. Subsequently, the report also showed that total business inventories/sales ratio came in at 1.26 in July, down from 1.27 in both the previous month and July 2006.


10:00AM New York - 7:30PM Mumbai – Ess Dee Aluminium is in race to acquire packaging business of Canada based Alcan for $1 billion or more.

Sensex in Mumbai trading declined 10.64 or 0.70% to close at 15,603.80. CNX Nifty lost 0.24% or 10.95 to close at 4,518.95. Sensex had jumped at mid-day more than 200 points but was dragged lower at the close on worries in the European markets. Rupee recovered to 40.60 against dollar from 40.65 in Friday trading. Market indexes opened higher at the opening but closed lower in a familiar pattern in the last three months of trading. Political worries dogged traders.

Of the stocks trading on BSE, 1,753 declined, 999 gained, and 61 closed unchanged. Daily turnover on the exchange increased to 6,120 crore rupees ($1.5 billion) compared to 5,286 crore rupees a day ago. In trading on National Stock Exchange volume increased to 12,509 crore rupees ($3 billion) from 11,075 crore rupees a day ago.

Of the 30 stocks in the Sensex 11 rose and 19 fell. ICICI Bank led the gainers in the index with a rise of 2.6% to 907 rupees. NTPC led the decliners with a loss of 3.1% to 185 rupees. The most active stock on the BSE, Infrastructure Development Finance declined 4.2% to 129 rupees with trading volume of 2.7 crore shares and 325 crore rupees.

Ess Dee Aluminium soared 4% to 495 rupees after the company showed interest in acquiring packaging business of Alcan, Canadian aluminum maker. Alcan has agreed to be acquired for $38 billion by UK based Rio Tinto.

Larsen & Toubro jumped 1.1% to 2,596 rupees on the news that the company in collaboration with Germany based Outotec GmbH for Steel Authority of India. The company is awarded 630 crore rupees contract and its German partner will handle 22 million euro project to build a sintering plant. Era Constructions declined 2.5% to 564 rupees after its subsidiary received an order of 285 crore rupees from Aravali Power Company. Unity Infraprojects lost 2.1% to 598 rupees after receiving an order of 134 crore rupees to build a shopping center in Pune.

Reliance Industries increased 8 rupees or 0.4% to 2,033 rupees on the news that the company is planning to invest in partnership with two companies and enter ship building and port dredging business. Earlier, Reliance Industries and a group of ministers appointed by the Government of India agreed on natural gas purchase price of $4.20 Mbtu for five years. The natural gas from Krishna Godavari basin will be distributed by government agencies. Reliance had asked for $4.33 Mbtu and negotiations between the government and the company had dragged for more than a year.

Alok Industries soared 6% to 73 rupees after receiving approval to build special economic zone for textile industry in Silvasa, Gujarat.

Ispat Industries jumped 5.2% to 20 rupees after the news that the company is planning to invest 10,000 core rupees ($2.5 billion) to expand steel production capacity. Aftek soared 12% to 82 rupees on the news that the company, minority investment of 25%, Seekport AG was listed in Germany with a market cap of 475 million euros.

House of Pearl Fashions added 5% to 278 rupees after Reliance Mutual Fund purchased 400,000 stocks for 278 rupees from Morgan Stanley. In another deal, Reliance purchased from Citigroup 428,000 stocks of CCL products at 250 rupees.


09:45AM Wall Street opened lower on weak retail sales and economic concerns. Intel pressured the Dow.

Wall Street showed considerable weakness at opening Friday, reflecting weaker-than-forecast August retail sales, as well as economic and financial concerns, sparked by U.K. lender Northern Rock which approached the Bank of England for emergency funding. The Commerce Department said that retail sales rose 0.3%, but all the gains were for cars and trucks. According to another government report, industrial production rose 0.2% as U.S. factories, mines and utilities increased output.

Dow member Intel (INTC: chart) pressured the blue-chip average and tech sector after Merrill Lynch downgraded the chipmaker, sending its stock down 1.6%. American Express (AXP: chart) was also driven lower by analyst comments. The stock fell 2.6%, pushing the Dow further lower after Merrill Lynch cut its rating on the stock on worries about weak U.S. employment.