U.S. MARKET AVERAGES

Dow component General Motors set a negative tone to pre-market trading and the whole morning session after it was announced that the SEC is conducting a financial investigation of the world’s biggest automaker. The three major indexes have extended losses with the Nasdaq being the biggest decliner, down by 0.8%.

Economic data release also weighed on the market sentiment as the Commerce Department said that durable goods orders fell 2.1% in September. Economists had been expecting a 1.5% decline.Transportation orders, orders for computers, electrical equipment and appliances fell sharply. Data on new home sales in September showed a smaller-than-expected rise to 1.22 million units, which weighed on home builders' shares.

An upbeat report, released by The Labor Department said that initial jobless claims in the week ended October 22 expectedly decreased.
The report showed that initial jobless claims in the week ended October 22 fell to 328,000 from the previous week's revised figure of 356,000.

In the heat of the earnings season, over 150 companies released results with the vast majority continuing to exceed expectations and reflecingt solid growth,

The housing sector stands out as one of the day’s biggest decliners, posting a loss of 2.3%. Energy stocks fell sharply on government's weekly natural gas inventory report, which showed an increase of 77 billion cubic feet. The natural gas sector is the worst performer in the group, down by 1.8%.

The chemical and HMO sectors are notable movers to the upside. Bank stocks are posting modest gains.

Among the stock losers, General Motors (GM: chart) is the worst Dow component, falling 3.5% on news that it has received SEC subpoenas, dealing with accounting. Johnson & Johnson (JNJ: chart) is another notable Dow decliner, adding to recent losses and currently down 2%. Altria (MO: chart) is showing a loss of 1.4%.

DuPont (DD: chart) is the best performing blue chip, extending earnings-related gains for the third straight session. The stock’s advance is 1.1%. Verizon (VZ: chart) is 1% higher on earnings news. Exxon Mobil (XOM: chart) is also posing gains.

MOVERS AND SHAKERS

Carmaker General Motors Corp. (GM: chart) rejected speculation it was planning to file for bankruptcy and may seek protection from its creditors. This suposition came as a result of the company’s report that it had received requests from the Securities and Exchange Commission as part of an agency investigation of its pension obligations and business dealings with bankrupt company Delphi Corp. General Motors stock dropped 2.6%.

Telecom giant Verizon Communications (VZ: chart) reported third-quarter results that beat forecasts, boosted by continued strength in its wireless business. In addition, the company’s rival SBC Communications (SBC: chart) confirmed speculation that it will aquire the AT&T name when the two companies' union is completed. Verizon stock gained 1.3%.

Oil company Exxon Mobil Corp. (XOM: chart) posted adjusted quarterly results that fell slightly of analyst predictions. The company’s stock declined 0.4%

Dow Chemical (DOW: chart) reported quarterly results that were well above Wall Street expectations. These results were boosted mainly by strength in the company’s Plastics division. Dow Chemical stock jumped 2.6%.

Chinese search engine Baidu.com Inc. (BIDU: chart) posted its first quarterly results since going public. The company’s results fell short of analyst expectations. Baidu shares fell more than 15%.

ECONOMIC NEWS

Thursday morning, the Department of Labor released its report on initial jobless claims in the week ended October 22, showing a bigger than expected decrease.

The report showed that initial jobless claims in the week ended October 22 fell to 328,000 from the previous week's revised figure of 356,000. Economists had expected jobless claims to fall to about 340,000 from the 355,000 originally reported for the previous week.

About 24,000 of the new jobless claims were people that were put out of work by Hurricanes Katrina and Rita. The increase lifted the total number of claims resulting from the storms to 502,000.

The Labor Dept. also said that the 4-week moving average fell to 366,500 from the previous week's revised average of 376,500. This marks the third consecutive decrease by the less volatile moving average.