4:30PM NY, 10:30 PM Frankfurt, 2:00AM Mumbai – Global Markets

Markets in New York did not like the earnings growth at Google, Microsoft, Caterpillar, and Citigroup. Traders sold stocks and left averages lower 1%. Media talks of Dow above 14,000 lasted no more than one day. European markets fell on worries related to construction stocks in Spain, banking stocks in Germany, and tech stocks in the UK. In Asia, Hong Kong, Korea, and India close at a record high.

Yields edged lower on 10-year U.S. bonds and closed at 4.958% and 30-year bond rose to close at 5.067%.

Crude oil dropped 35 cents to close at $75.57 per barrel, natural gas closed 26 cent lower to $6.45 per mBtu, and gasoline futures decreased 2.7 cents to close at 216.46 cents per gallon.

Gold traded up $6.60 to close at $684.70 per ounce, silver 2.8 cents to close at $13.43 per ounce, and copper futures gained 1.6% or $142 to close at $8,043 per metric ton.

Dow Jones increased 82.19 to 14000.41, Nasdaq advanced 20.55 to 2,720.44, and S&P 500 rose 6.19 to 1,553.08. DAX index in Germany closed up 97.60 to 7,991.21, in Tokyo Nikkei 225 closed at 18,116.57, up 100.99, and Brazil Bovespa gained 568.72 to close at 58,124.57.

Market averages in New York gyrated with earnings from three hundred companies this week in the U.S. More than 400 companies are likely to report earnings next week. Merck, Schering Plough, UPS, Apple, Colgate Palmolive, Corning, ConocoPhilips, 3M, Dassault, Comcast Corp, and Baker Hughes are expected to report earnings next week.

Latin American Markets dropped across the region led by a decline of 1.3% in Brazil. Mexico lost 0.9% followed by 0.8% in Chile and 0.46% decrease in Argentina.

In Sao Paolo trading stocks fell 1.23% to 57,408.98 on falling airlines and telecom stocks. Vivo plunged 6% after reporting earnings but TIM Participacoes gained 1% ahead of earnings. Natura Cosmeticos fell 3% ahead of weak earnings expectations.

Brazilian mobile telecom operator Vivo (VIV: chart) reported sharply higher losses than anticipated. The company reported loss of 112.8 million reais compared to a loss of 493.1 million reais a year ago on higher marketing and promotional charges and persistent charges related to unpaid bills. The telephone company added 1.2 million subscribers in the second quarter. The company added security features to improve billing frauds but still had to provision 101 million reais, 70% decline from a year ago. The largest mobile operator in Brazil maintained its market share near 37%, as in the first quarter, but lower than 40% a year ago.

In Mexico City trading IPC Index fell 0.88% to 31,868.88 on weakness in European and American trading. Cemex, third largest cement maker, fell 2.4% today and 6% for the week, reported earnings increase of 6% to $611 million. The company is in the final stage of completing its acquisition of Australia based building materials company Rinker. Construction company Cicsa jumped 5% after Mexican President Calderon said that it plans to improve roads, ports and energy facilities by increasing spending.

In Santiago trading energy producers, Endesa, Enersis and Colburn fell more than 1% ahead of earnings next week. Supermercados Unimarc soared 30% after rival Cenosud affirmed its interst in the company. The stock of Unimarc has nearly doubled after the rival expressed its initial interest.

European Markets closed lower across the region led by 1.8% drop in Spain and France followed by 1.5% decline in Germany and Italy, near 1.0% fall in the Netherlands and Switzerland, and 0.8% decrease in the UK. Tech companies’ earnings, rising euro in international markets, and worries related mortgage bonds in the U.S. failed to overcome strength in mining sectors.

Asian Markets across the region advanced on rising oil and metals prices, higher earnings, and positive sentiment in New York and European trading a day ago. Shanghai led the region with a sharp rise of 4.3% followed by 2.36% rise in South Korea, 1.4% gain in Indonesia, 1.3% rise in Singapore, 1.2% in increase in Taiwan, and 1.2% ahead in Hong Kong, and 0.6% edging up in Australia. Japan increased a fraction 0.23%.


3:00PM New York – Market averages are trading with losses of 1% with less than one of hour of trading.

Stocks in New York trading fell sharply on earnings miss from Google and Caterpillar and continued worries related to bank exposure to mortgage markets. Nasdaq, Dow, and S&P 500 fell at least 1% dragged by financials and tech stocks. Market recovered from its mid-day losses but still struggled on summer Friday. The relatively higher trading volume reflected options and derivatives expiration.

Google, Caterpillar, Citigroup earnings failed to impress the market. Indexes and stocks fell at the opening. Citigroup and Wachovia Bank reported higher earnings but left investors wondering how many bridge loans at these banks are likely to go sour.

Advanced Micro Devices (AMD: chart) fell 1% after reporting a loss of $1.09 per share or $600 million in the second quarter. Unit shipments of chips rose 38% on heavy discounting to win market share battle with industry leader Intel.

SanDisk (SNDK: chart) jumped 3.6% after reporting earnings of 12 cents per share lower than the expectations of 15 cents. The company guided higher gross margins and better pricing environment for the rest of the year. The revenue in the quarter jumped 15% but earnings declined to $28 million from $96 million a year ago.

Sherwin Williams (SHW: chart) dropped 1.7% after reporting second quarter earnings of $202 million of $1.52 per share compared to a year ago of $184.5 million or $1.33 per share. Net sales in the quarter gained 3.2%.