World Airways ((WLDA.PK)) has agreed to be acquired by Global Aero Logistics, the parent company of ATA Airlines, for $315 million, or $12.50 per share. Shares of the company climbed 5.7%.

American Home Mortgage Investment Corp. (AHM: chart) shares fell 15.9% after the company cut its first-quarter and full-year profit forecast by more than 25% after it was being hit by problems in the secondary market for home loans and mortgage-backed securities.

Ariad Pharmaceuticals Inc. (ARIA: chart) said that enrollment of patients into the pivotal late-stage trial for its experimental cancer drug may be delayed until the third quarter. Ariad shares slipped 12.6%. Patient enrollment for the study of the drug, AP23573, for metastatic sarcoma, which will provide the data that Ariad expects to use to seek U.S. approval of the medicine, had been expected to begin in the current quarter, the company said.

Avocent Corp. (AVCT: chart), which makes switching systems for network servers, shares dropped 8.1% after the company released first-quarter sales guidance below Wall Street''s expectations. Avocent said it expected first-quarter revenue to be between $132 million and $135 million.

Conexant Systems (CNXT: chart), which makes chips used in communications devices, said second-quarter revenue fell 18% in the fiscal second quarter, due to lower-than-expected sales from several products. Second-quarter revenue totaled $200 million, down from $242.6 million the year prior. Shares of the company fell 7.3%.

Daktronics Inc. (DAKT: chart) lowered its fourth-quarter outlook and the company now expects earnings of 6 cents to 10 cents per share on revenue of $101 million to $105 million. The supplier of large screen video displays had previously forecast per-share earnings of 12 cents to 19 cents on revenue of $106 million to $118 million. Daktronics said it made the revision after it was unable to book enough orders early in the quarter to generate sales. Shares fell 21%.

Sourcefire (FIRE: chart), network security and information management system developer, said it expects to post a first-quarter 2007 loss. The company is projecting a loss of $2.2 million to $2.6 million. Excluding certain expenses, the company expects gross profit of $7.8 million to $8.2 million, up from $6.5 million for the first quarter 2006. Revenue for the quarter is expected to range from $10.1 million to $10.5 million, up from $8.5 million in the year ago period. Shares fell 28.5%.

11:30AM U.S. markets lost direction. AMD gained despite lowered revenue forecast.
U.S. stocks traded mixed on Monday morning, reflecting cautiousness ahead of Q1 earnings season and modest support provided by deal news and a delayed reaction to Friday''s robust jobs report. Dow Chemical (DOW: chart) jumped 5% on speculations that the company is likely to become a target of $50 billion. Further in deal news, Citigroup (C: chart) was little changed after saying it will buy Taiwan''s Bank of Overseas Chinese for about $426 million in cash. Among other Dow components, Intel Corp. (INTC: chart) and Dupont (DD: chart) offered support, rising 2.8% and 0.5% respectively. Tech stocks traded mixed. Shares of Advanced Micro Devices (AMD: chart) rose 4% although it lowered its Q1 revenue forecast and said it would aim to cut $500 million in capital spending in 2007. Semiconductor equipment makers Applied Materials Inc.(AMAT: chart) and KLA Tencor Corp. (KLAC: chart) declined 0.2% and 1.3%, respectively. In late morning trading, the Dow Jones industrial average rose 7.07, or 0.06%, to 12,567.27. The Standard & Poor''s 500 index was up 1.37, or 0.09%, at 1,445.13, and the Nasdaq composite index rose 2.22, or 0.09%, to 2,473.56

11:00AM U.S. markets lost direction. Transportation stocks rose.
U.S. stock markets failed to sustain the initial strength and turned to lackluster trading. Despite the pullback by the major averages, the transportation sector moved notably higher, led by Burlington Northern (BNI: chart). The railroad company jumped 7.1% on the heels of news that Warren Buffett''s Berkshire Hathaway became the biggest shareholder, as he bought a 10.9% stake in the railroad company. Berkshire ((BRK-A)) had accumulated 39 million shares of the second- largest U.S. railroad, paying between $81.18 and $81.80 for the final 1.6 million. Some chemical stocks also showed strength, with shares of Dow Chemical (DOW: chart) up 5%. At the same time, airline stocks came under pressure although the price of oil continued to fall after showing a notable decline last week. Some weakness was also visible in the semiconductor sector. Maxim Integrated Products (MXIM: chart) and Micron Technology (MU: chart) turned in two of the sector''s worst performances, falling 1.1% and 2.1% respectively. On the side of the gainers, Advance Micro Devices (AMD: chart) rose 4.7% even though the chip maker warned of weaker-than-expected Q1 revenues.


9:45AM U.S. stocks opened higher, boosted by deal talk and jobs data.
U.S. stock markets saw a positive start of Monday trading session, lifted by news that Dow Chemical is the target of $50 billion leveraged buyout, as well as easing economic growth concerns on the back of robust jobs report. The advance added to last week''s gains, which helped the major indexes return to positive territory for the year. In corporate news, Dow Chemical (DOW: chart) was sent 6.6% higher by a report, saying that the break-up bid for Dow Chemical would be between $52 and $58 a share, valuing the company at a minimum of $50 billion. In other deal news, Dow component Citigroup (C: chart) lost 0.1% after it agreed to buy Taiwan''s Bank of Overseas Chinese for about $426 million in cash.

Among companies in focus, American Home Mortgage (AHM: chart) tumbled 16% after the company cut its earnings outlook by more than 25% and slashed its quarterly dividend by about 38%. As a result, the company''s stock was downgraded both at Citigroup and Lehman Bros. Shares of Ariad Pharmaceuticals (ARIA: chart) slipped 12% after the company said that it may delay patient enrollment for its Phase III trial for cancer drug AP23573 to Q3 from Q2. Sanmina-SCI shares (SANM: chart) dropped 4.2% after the electronics contract manufacturer warned the Q2 revenue would miss its previous estimate. In the first hour of trading, the Dow Jones industrial average rose 13.89, or 0.11%, to 12,574.09. The Standard & Poor''s 500 index was up 1.71, or 0.12%, at 1,445.47, and the Nasdaq composite index added 3.02, or 0.12%, to 2,474.36. Bonds regained some traction after falling in a shortened session Friday on the employment report. The yield on the benchmark 10-year Treasury note fell Monday to 4.73% from 4.75%.


9:00AM U.S. stock futures pointed to a higher opening, helped by jobs data.
Wall Street looked poised for higher reopening after the three-day Easter holiday. U.S. stock futures rallied, boosted by stronger-than-expected jobs data in March and a report that Dow Chemical Co. is the target of a $50 billion buyout offer. On Monday, investors had their first chance to react to a Labor Department report which said Friday that nonfarm payrolls expanded by 180,000 in March, while the unemployment rate slipped to 4.4% from 4.5% in February. Economists had been expecting jobs growth of 168,000 and a jobless rate of 4.5%, on average. The jobs data raised some hope that growth was stronger-than-expected during the quarter, soothing concerns of economic slowdown before the Q1 earnings season. On the other hand, the robust jobs data significantly reduced the odds of an interest rate cut in the near future.

Dow Chemical (DOW: chart) was in focus on speculations that a consortium of Middle Eastern investors and American buyout firms will launch a $50 billion bid to acquire the company. Kohlberg Kravis Roberts & Co., one of the biggest U.S. private equity firms is said to be one of the bidders. The stock rose 8.4% in the pre-open trading. In corporate news, Citigroup (C: chart) said it agreed to buy Taiwan''s Bank of Overseas Chinese for $426 million. The deal is expected to complete in the second half of 2007. Company''s stock gained nearly 1% in the-open.

Among companies driven by analyst comments, American Home Mortgage (AHM: chart) tumbled 19.3% after the company cut its earnings outlook by more than 25% and slashed its quarterly dividend by about 38%. Consequently, Lehman Bros. downgraded the stock to equal weight from overweight, and cut its price target to $20 from $45. Citigroup cut its rating to sell from hold and its price target to $19 from $26. Lehman Bros. downgraded Murphy Oil (MUR: chart) to equal weight from overweight, citing valuation. Sanmina-SCI shares (SANM: chart) dropped nearly 3% in pre-market trading after the electronics contract manufacturer warned the Q2 revenue would miss its previous estimate due to weak demand in the communications market. S&P 500 futures climbed 5.10 points to 1,457.80 and Nasdaq 100 futures hiked up 7.75 points to 1,836.00. Dow industrials futures ran up 40 points to 12,662.


8:15AM Dow Chemical soars on bid speculations of $50 B.
Dow Chemical (DOW: chart) jumped 10% in pre-market trading, driven by news that it could be target of the biggest leveraged buyout of all time. A consortium of Middle Eastern investors and American buyout companies is reportedly preparing a bid offer valued at $50 billion. Half of the capital is being provided by investors from Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman. A number of U.S. buyout firms including Kohlberg Kravis Roberts are responsible for contributing the rest of the financial resources. According to reports, a financing package has been put in place for a break-up bid of between $52 to $58 a share and an approach valuing the company at least $50 billion could come by the end of this week.


8:00AM NY-7:PM Mumbai Sensex zooms more than 300 points on a broad rally.
The Sensex on BSE finished 321.66 points, or 2.50%, higher at 13,177.74. The market-breadth was very strong as there were more than three gainers for each decliner. For 1,915 stocks that advanced, 613 stocks declined, and only 71 stocks which remained unchanged. Of the 30 stocks in the Sensex, only one stock declined. The turnover on BSE was Rs 3,075 crore, slightly lower than Rs 3,182.14 crore on Thursday. On NSE, the turnover was Rs 6,286.86 crore, lower than Rs 6946.16 crore on Thursday.