9:45AM Market opened modestly higher, despite profit warning from Symantec.
U.S. stocks opened slightly higher Tuesday, paying little attention to a weaker-than-expected manufacturing report for the New York region and a profit warning from software maker Symantec Corp. (SYMC: chart). The Internet security software maker fell 7.6% after it warned that 2007 profit will come below analyst expectations. In addition, home builder Centex Corp. (CTX: chart) also warned its Q3 results would miss expectations. Chip maker Intel Corp. (INTC: chart) is expected to release its results after the closing bell. Online financial-services firm TD Ameritrade (AMTD: chart) jumped 6.7% after reporting Q1 net income growth of 60% from year-ago levels, helped by trading commissions, interest revenue and fees. The company earned $145.6 million, or 24 cents a share, from $86 million, or 21 cents a year ago, beating estimates of 22 cents a share.

Telecommunications stocks were mixed to higher in early trading, led by FairPoint Communications and Nortel Networks Inc. FairPoint (FRP: chart) jumped 10% on a deal to acquire the phone operations of Verizon Communications (VZ: chart) in three states. Nortel (NT: chart) rose 3% on a deal to become a key supplier for the BT Group in the buildout of the U.K. carrier''s next-generation Internet-based network. Share of airline stocks also moved higher at opening, as oil futures declined and Citigroup lifted price targets for JetBlue, Southwest Airlines Co. and AMR Corp. JetBlue Airways (JBL: chart) rose 1%, Continental Airlines Co. (CAL: chart) and American Airlines parent AMR Corp. (AMR: chart) also gained over 1%. In the first hour of trading, the Dow Jones industrial average rose 12.41, or 0.10%, to 12,568.49. The Standard & Poor''s 500 index was up 0.55, or 0.04%, at 1,431.28, and the Nasdaq composite index rose 3.69, 0.15%, to 2,506.51.


9:30AM NY-2:30PM London The FTSE slips as inflation rises.
The FTSE 100 lost 0.19% to 6,252 at by midday.

Economic news

The consumer price index rose to 3% in December, above the target of 2% of Bank of England. If the inflation rate goes up any further, more than 1% above the 2.0% target by the government, the Bank of England will have to write to the Chancellor to give an explanation.

Decliners

Lonmin, the platinum refiner, shed 1.4% after the platinum producer announced repairs to one of its processing plants would cut output in the first half. Trading was less subdued at Debenhams as it reported a 4% drop in UK same-store retail sales in the 19 weeks to January 13. Shares in the department store chain declined further in mid-session exchanges, losing 5.4%.

BP lost 0.2% ahead of the publication of an inquiry into safety problems within its US operations, widely expected to be critical of the company. Northern Foods, the maker of oven-ready pizzas and meals, dipped 5.7% following its statement that sales growth in the Q3 slowed to 2.8% .

Miners traded in line with metals prices and were ahead of the list of declining shares. Antofagasta was 3% lower, Xstrata lost 2.6% and Rio Tinto fell 2%.

Christmas trading update of Tesco beat slightly forecasts of analysts as same-store sales advanced 5.9%. Hopes of strong results had already been priced into the stock and it dipped 0.5%.

Advancers

Demand for Smiths Group was slightly lower after the news on Monday of the sale by Smiths Group of its aerospace unit to GE and plans to return $2.1 billion of the $4.8 billion proceeds to investors. The stock advanced a further 3.9%, building on an 11 % gain by the end of the previous session.

Enterprise Inns was another gainer, 1.9% stronger after an upbeat trading statement was greeted by investors.


9:00AM Market futures turned lower on weaker NY manufacturing activity.
U.S. stock futures reversed from earlier gains, dragged by surprising weakness in manufacturing activity in the New York region and a warning from security software maker Symantec. The New York Fed said that its general business conditions index fell to 9.13 in January from 22.19 in December, disappointing analysts who had expected a decline to 20.0. Shares of Symantec (SYMC: chart) dropped 7% in the pre-open after the company lowered its outlook citing a weaker-than-expected performance by its data center management business and higher deferrals than expected. The company cut its adjusted earnings estimate to 24 to 25 cents a share from 29 to 30 cents a share, and its revenue forecast to $1.30 billion to $1.32 billion from $1.325 billion to $1.355 billion.

On the earnings news front, Wells Fargo & Co. (WFC: chart) posted net income rise of 13% to 64 cents a share, up from 57 cents a share a year ago on 11% revenue increase. Quarterly earnings met analyst expectations, while the revenue came in above average estimates. Company''s shares gained 1.4%. Forest Laboratories (FRX: chart) said Q3 profit rose 28% on a 16% sales growth. The pharmaceutical company earned 78 cents a share, compared with a profit of 57 cents a share last year on 18% revenue increase. The stock jumped 3.7% in pre-market trading. Precious metals miner Freeport-McMoRan Copper & Gold Inc. (FCX: chart) reported Q4 profit drop of 8% to $1.99 per share, down from $2.19 per share last year, citing a decrease of production at its core Indonesian operations. The quarterly earnings missed estimates of 2.19 per share. The stock slipped 3.2%. S&P 500 futures erased earlier gains to trade down 0.20 of a point at 1,440.60 and Nasdaq 100 futures slipped 0.75 of a point to 1,861.50, after also seeing earlier gains. Dow industrial futures inched up 1 point to 12,627.

NY manufacturing growth slowed more than expected.
AM Tuesday morning, the Federal Reserve Bank of New York released its report on activity in the manufacturing sector in the state of New York in the month of January. The report showed that pace of growth in the sector slowed much more than economists had expected. The New York Fed said that its general business conditions index fell to 9.13 in January from 22.19 in December, with a positive reading indicating growth in the sector. Economists had expected the index to fall to about 20.0.


8:00AM U.S. stock futures traded slightly up, helped by $4.8 B acquisition deal.
U.S. stock market futures traded modestly higher after the long holiday weekend. Deal news from General Electric and economic data, expected to show improving New York-area manufacturing sentiment were in focus. On Friday, Wall Street ended higher, boosted by strength in the energy and technology sectors.