1:00PM NY, 5:00 PM Frankfurt European stocks closed lower, pressured by weak airlines.
European stock markets closed in the negative territory on Wednesday, pressured by weakness among airlines stocks as well as mixed earnings from Credit Agricole and Vivendi. Air France-KLM dropped 2.1% after UBS downgraded the company to neutral from buy. Shares in the French Credit Agricole slipped 4.1% after the bank reported a 92% increase in Q1net income, but excluding special items, earnings came below estimates.

Again in France, Vivendi shares rose 1.1% after reporting 23% increase in Q1 adjusted net income. Among tech stocks, chipmakers Infineon Technologies dropped 3.2% and STMicroelectronics fell 1.8% after U.S. peer Applied Materials posted a weak outlook Tuesday. In contrast, automakers were mostly higher, with Volkswagen rising 1.8% and Porsche moving up 2.3%. The U.K. FTSE 100 edged down 0.1% at 6,559.50, the French CAC-40 declined 0.2% to 6,017.91, and the German DAX Xetra 30 lost 0.3% at 7,481.25.


11:30AM Market averages moved lower on weak resource and semiconductor stocks.
In late morning trading, U.S. stocks reversed from earlier gains made on the back of better-than-expected economic data. On Wednesday, investors welcomed data which showed that construction of homes and apartments rose 2.5% in April to a seasonally adjusted annual rate of 1.528 million units. However, requests for new construction permits fell 8.9% in April, the biggest drop since a 24% plunge in February 1990. According to another report, industrial output rebounded by 0.7% in April, more than double the 0.3% gain that had been expected.

Market sentiment was hurt by weakness in resource and semiconductor stocks. Metals companies declined amid a decrease in commodities prices. Semiconductor stocks came under pressure after Applied Materials (AMAT: chart) posted a disappointing guidance. While the Dow and the Nasdaq traded below the flat line, the S&P 500 managed to remain in positive territory on strong gains by Compuware (CPWR: chart) and Bausch & Lomb (BOL: chart), rising 12.2% and 8%, respectively.

In late morning trading Wednesday, the Dow fell 1.95, or 0.01%, to 13,381.89 after being up as high as 57 points earlier. The Standard & Poor''s 500 index advanced 2.30, or 0.15%, to 1,503.49 and the Nasdaq composite index fell 1.91, or 0.08%, to 2,523.38. Bonds showed little change despite the economic readings. The yield on the benchmark 10-year Treasury note remained flat at 4.71% from late Tuesday.


9:45AM U.S. markets opened higher on mixed housing data and gains for Citigroup.
U.S. stocks advanced at opening on Wednesday, reflecting mixed housing data, speculation about Citigroup and a cautious outlook at chip-equipment maker Applied Materials. Dow component Citigroup (C: chart) jumped 3% after hedge-fund manager disclosed he bought more than 15 million shares in the bank. The blue-chip average received further support from gains in the shares of Johnson & Johnson (JNJ: chart), up 1.8%, J.P.Morgan (JPM: chart), rising 1.4%, and Boeing (BA: chart), higher by 1%.

Tech stocks were pressured by Applied Materials (AMAT: chart) which fell 4.6% after forecasting flat Q3 sales and up to a 15% drop in orders. Rival chip equipment makers KLA-Tencor (KLAC: chart) fell 2.1% and Lam Research (LRCX: chart) slipped 2.7%. Homebuilders advanced as investors shrugged off data showing 8.9% drop in building permits. Hovnanian Enterprises (HOV: chart) rose 1.3%, while Toll Brothers (TOL: chart) added 0.3%.

Again in the tech sector, Agile Software (AGIL: chart) dropped 13% after agreeing to be bought by Oracle Systems (ORCL: chart) for $495 million, or $8.10 a share. On the earnings news front, Federated Department Stores (FD: chart) said it swung to a profit from a loss, although earnings fell short of analyst expectations. Jack in The Box (JBX: chart) climbed 5% after it reported a better-than-forecast 25% profit rise.

In early trading, the Dow rose 45.99, or 0.34%, to 13,429.83. The Standard & Poor''s 500 index rose 7.35, or 0.49%, to 1,508.54 and the Nasdaq composite index rose 10.78, or 0.43%, to 2,536.07. Bonds showed little change despite the economic readings. The yield on the benchmark 10-year Treasury note remained flat at 4.71% from late Tuesday.


9:30AM The UK index is lower Wednesday on weak retail sector.

By mid-day, the FTSE 100 shed 5 points, 0.1%, to 6,564.4.

Advancers

There were few advancers on Wednesday. Vedanta Resources gained 1.9% after it posted full-year revenues increased 76% to $6.5 billion and earnings before interest, taxation, depreciation and ammortisation more than doubled to $2.7 billion.

Catering company Compass, up 2.2%, was in demand after it reported a solid rise in first half operating profit and sees growth continuing.

Decliners

Next, down 5.8%, said trade has been extremely volatile, with a good Easter followed by a very disappointing first two weeks of May. The group continues to budget on the basis that first half same-store sales at Next Retail will be in the range -1% to -4%.

Land Securities shares dipped, down 3.7%, after it reported full-year profits declined and growth was slowing as expected. The real estate investment trust reported a 14 % rise in adjusted diluted net asset value.