Multi-Fineline Electronix Inc. (MFLX) shares fell 9.5% said its profit could decline from the first quarter on lower-than-expected sales to its largest customer. Multi-Fineline had posted first-quarter earnings of 14 cents per share on sales of $123.9 million.

NeoPharm Inc. (NEOL) shares plunged 12.3% after the biotech drug developer said the Food and Drug Administration wants another late stage clinical trial on a brain cancer treatment candidate before it will accept a marketing application for review. The FDA''s Office of Oncology told Neopharm another Phase III clinical trial for Cintredekin Besudotox to treat recurring glioblastoma multiforme was needed before the agency could accept a marketing application for approval.

Resources Connection Inc. (RECN) shares dropped 6.4% after the owner of professional services company Resources Global Professionals said third-quarter profit declined 5% on higher costs. For the quarter net income decreased to $13.1 million, or 26 cents per share, from $13.8 million, or 27 cents per share, in the same period last year. Revenue for the quarter rose 17% to $187.5 million from $160.3 million in the same quarter last year.

RF Micro Devices Inc. (RFMD) shares fell 11.2% after the chipmaker backed its fourth-quarter guidance but warned that first-quarter results would be lower than Wall Street''s forecast. The company said it still backs its previous outlook of fourth-quarter earnings of 11 to 12 cents a share on revenue of $250 million to $260 million, assuming the Jazz Semiconductor transaction closes in March. The Greensboro, N.C.-based company also confirmed it still sees pro forma per-share earnings of 10 cents to 11 cents a share.

Stride Rite Corp. (SRR), shoemaker and retailer, affirmed yearly guidance based on the strength of its brands and its acquisition of Robeez, a Canadian footwear company acquired in September. The company reaffirmed net income earnings guidance of between $1.10 per share and $1.15 per share, excluding integration costs of 2 cents per share.

UTI Worldwide Inc (UTIW) shares tumbled 19.4% after the company''s fourth-quarter earnings missed Wall Street''s expectations because of persistent costs pressures. UTI Worldwide, which helps its customers move freight via trucks and other modes of transportation owned by other companies, said that profit for the three months ended Jan. 31 more than doubled to $23.6 million, or 24 cents per share, on a revenue gain of 31%. But analysts polled by Thomson Financial had forecast a profit of 26 cents per share on revenue of $934.1 million.


1:30PM NY – 6:30PM Frankfurt – European markets closed sharply higher across the region with several indexes up 1%.

Of the nine major markets in Europe, seven gained more than 1% led by 1.4% rise in Italy, and 1.2% advance in France, Germany and Switzerland. U.K. gained 0.9%.

Banks, airlines and auto stocks led the charge in the region. Air France-KLM, British Air, and Deutsche Lufthansa rose more than 1.5% despite higher oil prices. French magazine reported that Air France is looking to cut cost of more than one billion euros, stock rose 2.4% to 34.1 euros. Iberia, Spanish airlines, said that it has hired Goldman Sachs and Morgan Stanley for merger related work. The stock gained 3% to 4 euros.

Mining stocks in the UK trading registered another day of gain on revised economic growth rate in the U.S. Final read on the economic growth rate for the fourth quarter was revised to 2.5% from 2.2%. BHP Billiton (BHP), Rio Tinto (RTP) and Arcelor Mittal (MT) gaining.

In Germany, government agency reported fall in unemployment of 65,000 during this month. SAP AG, German software maker fell 1% on the rumors that its chief technology officer and board member is likely to step down at the end of this week. The company is also embroiled in a dispute with Oracle involving customer data and software technology.

KarstadtQuelle rose 2.0% to 27.7 euros after reporting its first annual profit since 2003 on operating margin improvement and asset sales.

Raiffeisen International, Austrian bank, rebounded after dropping yesterday on earnings report. The bank reported earnings of 700 million euros falling short of analyst estimates. However, market focused on the reported earnings growth and ignored the guidance issued for the current fiscal year.


12:30PM NY – Markets in New York trim earlier gains and Nasdaq turn negative. Initial claims of unemployment fell by 10,000 in the U.S. and Germany registered a fall in unemployment by 65,000.

Market averages rose in the early morning trading on revised GDP growth rate, lower inflation index and buy-out deals. However, by Mid-day gains in market averages were trimmed by half and Nasdaq turned negative.

U.S. Steel said that it has agreed to acquire for $2.1 billion Lone Star Technologies, oil field tubular products maker, at a 39% premium to closing price of yesterday. The stock jumped 37% to $66.

Commerce Department reported that the final read on the fourth quarter GDP growth rate was estimated to 2.5%, revised from previous read of 2.2%. Inflation report along with the GDP report showed that core prices, excluding food and energy, rose at 1.8% lower than the previous estimate of 1.9% and better than 2.2% in the third quarter of 2006.

Department of Labor reported that at the end of last week, initial claims of unemployment fell 10,000 to 308,000 beating estimates of 320,000 claims.