Retailers also rose on speculation that the Bank of England will cut interest rate after sales unexpectedly slipped by 0.4% in the three months to December. Marks & Spencer gained 3.82%, Sainsbury Plc increased 2.70% and Next advanced 2.22%.

Homebuilders gained as well. Taylor Wimpey climbed 3.31% and Persimmon edged up 2.06%.

Standard Life led declining FTSE 100 index shares with a drop of 6.31% followed by losses of 5.84% in Prudential Plc, of 5.56% in Schroders Plc, of 5.23% in Icap, and of 4.32% in Old Mutual.

Financial stocks fell on the lingering worries related to ongoing correction in the housing market in the U.S. Barclays plunged 3.43%, Royal Bank of Scotland shed 3.30%, and Standard Chartered fell 1.84%.

RAB Capital Plc reported today net income rose less than 2% last year to 135 billion pounds. Also assets under management rose 38% from a year ago to $72 billion, while management and performance fees climbed 3.3% to 123 million pounds.



12:00PM New York – Financial stocks weakness dragged markets U.S. market averages lower.

U.S. stocks rebounded in the morning but quickly lost ground after earnings release from IBM, General Electric, and Schlumberger.

Conference Board index of leading indicators fell 0.2% in December, third monthly decline indicating that economy may be heading for a slow-down. Investors were also disappointed after President Bush plan of $145 billion to stimulate economy. Investors are hoping a larger package of monetary and fiscal stimulus.

General Electric (GE: chart) reported fourth quarter earnings from continuing operations of $6.82 billion or 68 cents per share on revenue rise of 18%. Earnings in the quarter jumped 15% and earnings per share increased 17% from a year ago.

GE stock added $1.19 or 3.5% to $34.37 at mid-day trading.

For the full year revenue rose 14% organic revenue in 2007 increased 9%. GE reported return on total capital rose 18.9% in 2007.

General Electric reaffirmed its earnings guidance for the year 2008 of at least $2.42 per share an increase of 10% from 2007.

Fourth-quarter revenue reached $6.25 billion versus $5.93 billion in the third quarter of 2007, and $5.35 billion in the fourth quarter of 2006.

Net income in the fourth quarter, excluding a $17 million after-tax gain on the sale of certain rigs in the quarter, increased 21% to $1.37 billion from a year ago or 1% from the third quarter.

Diluted earnings-per-share, excluding this gain, were $1.11 versus $1.09 in the previous quarter, and $0.92 in the fourth quarter of 2006.

In the fourth quarter strong sequential revenue growth contributed significantly to overall performance, but a less favorable Oilfield Services revenue mix, lower pricing in U.S. land operations, and a number of seasonal weather effects led to less than satisfactory margins.

The company said in the press release that high utilization rates of rigs will affect the land and offshore drilling in the U.S. however, growth in land activity in the international markets will be robust.

Spring (S: chart) fell $3.12 or 27% to $8.44 after it reported that it lost 683,000 subscribers on contract and 202,000 pre-paid customers in the fourth quarter. The company plans to eliminate 4,000 jobs in the first half of 2008 and close 8% of its stores.