5:00PM NY – 11:00PM Frankfurt – 2:00AM Mumbai – Global Markets

U.S. bonds yields rose and 10-year bond closed at 4.64% and 30-year bond closed at 4.812%.

Oil in New York trading fell $1.31 to close at $64.40 per barrel, natural gas fell 14 cents to close at $7.71 MBtu and gasoline fell 1.47 cents to close at 224.47 cents per gallon.

Gold declined $6.20 per troy ounce to close at $677.50 and silver price fell 20 cents to close at $13.37 per ounce. Copper gained $20 per metric ton to close at $7,806.

Asian markets were closed on the account of holiday in India, China, Hong Kong, Taiwan, South Korea and Thailand. Japan was open today but in a thin trading fell 0.72% and Australia declined 0.3% in sympathy with the U.S. averages. NTT DoCoMo rose 2.2% on reporting earnings. The annual earnings were lower for the current year but the company forecasted higher profit for the current year.

European Markets were closed except in the U.K. and the Netherlands. FTSE 100 index fell 0.5% on weakness in banks, construction companies and retailers. Hanson Plc and Balfour Beatty Plc fell on worries of weaker earnings in the coming quarters on the account of declining housing market in the U.S. Punch Tavern stock fell 3.5% despite reporting 14% rise in earnings.

Latin American Markets were closed for the May Day. Argentina based Ternium SA agreed to purchase Mexico based steel-maker Grupo Imsa for $1.7 billion. Ternium ADR trading in New York gained 2.3% on the news. Ternium has steel mills in Argentina, Venezuela and Mexico. Mexico has recently seen several deals in steel industry as it attracted investment from Arcelor Mittal based in Luxemburg.


11:30AM U.S. stock averages traded mixed on rate concerns.
U.S. stock market averages turned mixed, reflecting robust manufacturing data and weak housing report reignited concerns that the Fed Reserve may not cut interest rates in the near future. The Institute for Supply Management''s April manufacturing index came in at 54.7%, higher than the reading in March and above forecasts. In another report, the National Association of Realtors said pending sales of existing homes fell by 4.9% in March to their lowest point in four years.

Susquehanna Bancshares Inc. (SUSQ) agreed Tuesday to purchase Community Banks Inc. (CMTY) in a cash-and-stock deal worth nearly $860 million. Under terms of the deal, Community shareholders will receive either $34 in cash or 1.48 shares of Susquehanna common stock for each share of Community stock they own. Community Banks surged 34%.

MAF Bancorp (MAFB) surged 35% after National City Corp. said Tuesday it will buy the company for $56 per share, or $1.9 billion in an all-stock deal. The move is aimed to help National City to enter the Wisconsin market and expand its presence in Chicago. The price represents a 39% premium to MAF Bancorp''s Monday closing price of $40.15.

Among other stocks in focus today, Circuit City (CC) fell 11% after the company withdrew its first-half 2008 outlook and said its Q4 loss from continuing operations will widen. Citigroup later downgraded the stock to hold. In late morning trading, the Dow rose 33.49, or 0.26%, to 13,096.40. The Standard & Poor''s 500 index fell 0.35, or 0.02% to 1,482.02, and the Nasdaq composite index was off 3.05, or 0.12%, to 2,522.04. Bond prices dropped after the manufacturing data, and the yield on the benchmark 10-year Treasury note rose to 4.65%, up from 4.62% late Monday.


9:45AM U.S. markets opened higher on deal news.
U.S. stocks opened in the positive, helped by deal news. Microsoft (MSFT) is reportedly interested in buying Internet advertising firm 24/7 Real Media (TFSM) which soared 19%. Much stronger-than-expected data on manufacturing activity also contributed to the early gains, easing fears about the U.S. economic growth. The Institute for Supply Management manufacturing index hit a 1-year high of 54.7% in April, topping forecasts of an increase by 51%.

Among earnings-related gainers, Manitowoc (MTW) gained 5.3% in early trading as the provider of lifting equipment reported late Monday reported QA1 net earnings of $64.1 million, or $1.01 a share, up from $29.7 million, or 48 cents a share a year ago, beating expectations of earnings of 87 cents a share on revenue of $809 million. Manitowoc also lifted its 2007 outlook. The company named Glen Tellock as a new CEO. On the side of the losers, Circuit City (CC) fell 10.6% after the company said it expects Q1 loss and withdrew its forecast for the first half of the year. Procter & Gamble (PG) weighed on the Dow with a decline of 2% amid a disappointing forecast.

Shares of apparel-maker Liz Claiborne Inc. (LIZ) tumbled 20% after quarterly earnings missed estimates. The Dow Jones industrial average was up 34.54 points, or 0.26%, at 13,097.45. The Standard & Poor''s 500 was up 1.65 points, or 0.11%, at 1,484.02. The Nasdaq Composite Index was up 1.75 points, or 0.07%, at 2,526.84.


9:00AM U.S. stock futures pointed slightly higher ahead of manufacturing data.
U.S. stock futures indicated a moderately higher opening on Tuesday ahead of a reading on the nation’s manufacturing sector, which is expected to give further signs of the rate of economic slowdown. Investors were also awaiting the release of another batch of quarterly earnings, eager to learn whether the robust growth in corporate profits is likely to continue. The ISM’s index of U.S. manufacturing is due out after the opening bell, with economists predicting the April index will come in at 51.0. Reports on pending sales of existing homes in March and automakers’ sales figures in the month of April are also due out today.

Among pre-market headlights, Circuit City Stores (CC) slipped 8% in the pre-open after it withdrew its fiscal first-half 2008 outlook and said its Q4 loss from continuing operations will widen. Procter & Gamble Co (PG) reported a 14% increase in its Q3 profit, with earnings coming in line with expectations while sales, which rose 8%, came in better than expected. The company also lifted the lower end of its full-year forecast.

Automakers are scheduled to report weak U.S. sales for April. Ford Motor Co. (F) expected to posted 22% sales drop, followed by General Motors (GM) with 11% decline on sales, and Chrysler (DCX) with 10% decrease. Dow futures expiring in June rose 14, or 0.11%, to 13,130. The blue chip index has hit 37 record closes since the beginning of October, its latest coming on Friday. Standard & Poor''''s 500 index futures rose 3.30, or 0.22%, Tuesday to 1,491.70. Nasdaq 100 index futures rose 3.00, or 0.16%, to 1,882.25.