9:00AM U.S. stock futures turned higher on robust Q1 labor productivity.
U.S. stock futures advanced Thursday after data showing a bigger-than-expected rise in labor productivity in Q1, and lower-than-anticipated unit labor costs. The Labor Department said that productivity of the U.S. non-farm business sector rose 1.7%, much higher than the expected 0.8% increase. Unit labor costs at an annual rate of 0.6%, well-below expectations of a 2.1% gain.

The well-received economic data managed to offset negative sentiment generated by highly disappointing quarterly results at GM. General Motors (GM: chart) lost 1.4% to $32 in the pre-open after it said its Q1 profit dropped to $62 million, with GMAC hurt by the subprime mortgage sector. Among other movers in the sector, Ford Motor (F: chart) fell 0.9% and DaimlerChrysler (DCX: chart) slid 1.2% in the pre-open.

Among pre-market highlights, office-supply retailer OfficeMax Inc. (OMX: chart) said it swung to a Q1 profit, but retail sales fell and results misses analyst expectations. The company posted earnings of $57.5 million, or 76 cents per share, versus a loss of $26.1 million, or 37 cents per share a year ago, missing estimates of 93 cents. Excluding a $1.1 million loss related to the sale of some operations in Mexico, net income was 77 cents per share.

Further in earnings news, RealNetworks (RNWK: chart) climbed 7.1% in the pre-open after reporting a 60% profit surge and its board approving a $100 million stock buyback. JDS Uniphase (JDSU: chart) dropped 10% after it reported a loss. CBS (CBS: chart) reported a profit decline, though its profit topped analyst estimates. S&P 500 futures erased slight earlier losses to trade up 2.90 points at 1,504.00 and Nasdaq 100 futures tacked on 4.75 points to 1,903.50. Dow industrial futures climbed 22 points to 13,270.


8:15AM General Motors Q1 profit tumbled 90%.
General Motors Corp. (GM: chart) announced Thursday a sharp decline in quarterly profit coming in far below analysts'' estimates. The auto maker said its Q1 earnings were $62 million, or 11 cents a share, down from a profit of $602 million, or $1.06 a share a year ago, missing expectations of a profit of 87 cents on revenue of $40.88 billion. Revenue in the quarter slipped to $43.91 billion from $52.38 billion in the same period a year earlier.

The latest results include charges totaling $32 million, or 6 cents a share, largely related to restructuring actions in Europe and Asia Pacific. Excluding special items, GM would have posted Q1 adjusted earnings of $94 million, or 17 cents a share.

The company attributes the disappointing results to its financial services unit''s exposure to the non-prime sector of the residential mortgage business. However, the company said its North America operations posted an adjusted loss of $85 million for Q1, narrower than a year-ago equivalent loss of $251 million. The company''s stock fell 1.6% to $31.90 in premarket trade.


8:00AM NY-7:00PM Mumbai Sensex rallies Thursday on robust earnings from large-caps.

The Sensex on BSE finished 205.84 points, or 1.48%, higher at 14,078.21.

The market-breadth was strong as there were three gainers for every two decliners. As 1,557 stocks advanced, 1,016 declined and 87 stocks remained unchanged. Of the 30 stocks in the Sensex, 23 advanced, six declined and one remained unchanged. The turnover on BSE was Rs 4,413 crore, higher than Rs 3,282.23 crore on Monday. On NSE, the turnover was Rs 9,326.83 crore, much higher than Rs 7,571.21 crore on Monday.

Economic news

Out of the 60 notified Agri Export Zones, 54 have not been able to achieve forecast export and investments targets since 2001, according to Associated Chambers of Commerce and Industry of India.

Foreign investment companies in sensitive sectors like aviation, petroleum and retail could undergo changes next month when the government reviews the norms on foreign direct investment.

Trading highlights

IFCI was the most-active stock with a turnover of Rs 155 crore followed by Reliance Industries and Network FinCap.

Advancers

Bajaj Auto led the advancers, rallying 4.3% to Rs 2,551. The board meeting of the company is scheduled on May 17 2007, in Mumbai will probably include the demerger proposal, which is intended to unlock value for shareholders by separating the manufacturing and financial assets. Bajaj Auto continued its downward trend in motorcycle sales for the third straight month this year, with its April numbers, including exports, declining by 13% compared to the same month last year.

Index heavy Reliance Industries surged 4% to Rs 1,623. Reliance will pay over $600 million for hiring deep-sea drilling rigs for developing the gas fields in the prolific KG-D6 block off the east coast. KG-D6 is the world second largest deepwater find last decade.