Decliners

Engineering group FKI weighed on the index, falling 7.8%, after the prospect of a bidding competition faded away when it announced it was in talks with only one potential buyer.

BAE Systems, the largest defense company in Europe, was trading down 1.7% after media reports that it paid 1 billion pounds over ten years to the Saudi royal family in connection with Britain biggest arms sale.


8:30AM Asia ends mixed, with Japan, China up, and HK down.

Asian markets finished mixed. Japan''''''''s Nikkei 225 index rose 12.45 points, or 0.07% to finish at 18,053.38 points. Among the advancers were Mitsui Engineering & Shipbuilding, which added 4.9%, while higher oil prices made investors buy trading company shares, with Mitsubishi adding 1.24%. Retail and financial shares also gained, with Seven & I Holdings adding 0.87% and Mizuho Financial Group increasing 1.73%.

In China, the Shanghai Composite Index, tracking both Class A and B shares, settled up 3% at 3,890.80. The samller Shenzhen Composite Index also gained 3.7% to 1,126.84. The Hang Seng Index in Hong Kong shed 18.45 points, or 0.1%, to close at 20,800.16. Among Chinese companies in the index, offshore oil producer Cnooc gained 3%, its sixth-straight record high finsih. Telephone large-cap China Mobile also finished higher 0.2% and insurer China Life gained 0.2%. Interest-rate concerns weighed on many property firms, however. Sino Land dropped 1% and Henderson Land shed 0.4%.

Other markets in the region also finished mixed. The Korea Composite Stock Price Index ended up 0.6% at 1,753.04, the Weighted Price Index of the Taiwan Stock Exchange rose 0.5% to close at 8,355.26, while Australian S&P/ASX 200 lost 0.41% at 6,311.10.


8:15AM Wal-Mart same-store sales in May disappointed.

Wal-Mart Stores Inc. (WMT: chart) said Thursday its May same-store sales rose 1.1%, excluding fuel. Including fuel, same-store sales advanced 1.3%, slightly below analyst expectations of an increase by 1.4%. Total U.S. sales for the four-week period rose 7.7% to $28.26 billion. The company expects June same-store sales to come between flat and 2%.

J.C. Penney Company Inc. (JCP: chart) reported 2% decline in its May same-store sales, missing the forecast for a rise of 0.3%. The retailer said total department store sales increased 0.3% to $1.2 billion. The company expects June same-store sales to fall in the low single-digit percentage range.

Costco Wholesale Corp., (COST)), warehouse retailer, reported 7% increase in same-store sales, exceeding expectations of a rise by 5.6%. Total sales in May rose 11% to $5.14 billion.

Limited Brands Inc. (LTD)) said its May sales at stores open at least one year rose 2%. Analysts had expected its same-store sales to fall 1.6%. Net sales rose to $774.7 million from $719.4 million a year ago.


8:00AM NY-7:00PM Mumbai Sensex loses 70 points on a sell-off in auto stocks.

The Sensex on BSE settled 69.75 points lower, or 0.49%, at 14,186.18.

The market-breadth was negative as there were almost three decliners for every two advancers. As 1,456 stocks declined, 1,043 stocks advanced and only 75 stocks were unchanged. Of the 30 stocks in the Sensex, only six advanced, while all the others declined. The turnover on BSE was Rs 4,269 crore, much lower than Rs 5,290 crore on Wednesday. On NSE, the turnover was Rs 9,093 crore, also lower than Rs 10,225 crore on Wednesday.

Economic news

The Secretary of the Department of Telecommunications, Mr. D S Mathur, said at a conference today that by the end of the current financial year there will be 30% more rural areas connected by mobile telecom service.