[R]1:00PM NY, 5:00 PM Frankfurt European markets advanced, led by tech shares.[/R]

European stock markets finished higher for a second straight session, lifted by strength in the shares of ASML Holding NV and Nokia Oyj. The gains followed a better-than-expected earnings report from semiconductor Samsung Electronics Co. Germany advanced 0.5% at 8,092.77, followed by the U.K. with a gain of 0.3% at 6,716.70, and France up 0.2% at 6,117.96.

Among the strongest European gainers, ASML, a semiconductor-equipment maker, rose 1.7% and Nokia, the world''s largest mobile-handset maker, added 0.9%. Swedish Saab rallied 6.3%.

In Frankfurt the index hit a record intraday high, boosted by strength in the financial-services sector and gains in the shares of chemicals and tech stocks. Chemicals group BASF was a notable gainer, rising 1.9% after UBS lifted its price target to 105 euros from 92 euros. Other strong advancers included technology firm SAP, up 1%, and insurer Allianz, which rose 1.2%. Deutsche Bank advanced 1.5% and Munich Re added 0.7%.

In Paris shares in cosmetics giant L''Oreal dropped 4.2% after the group reported a mixed performance in the French and German markets during the first half. Electric control maker Schneider Electric rose 1.5% after Citigroup upgraded it to buy from hold.

In London banking stocks made a strong performance. Dutch bank group ABN Amro climbed 1.5%, while potential ABN Amro owners Barclays and Royal Bank of Scotlan added 0.8% each. The resource sector retreated , with Rio Tinto Group falling 1.9% after its acquisition bid for Alcan outpaced Alcoa’s hostile offer.


[R]11:30AM U.S. market averages turned mixed. Housing stocks advanced.[/R]

The U.S. market averages turned mixed in late-morning trading. The Dow and the S&P 500 extended the solid gains posted in the previous session, while the Nasdaq moved to the downside. The S&P had its biggest one-day percentage gain in a year and the Dow had its best percentage increase since October 2003. A positive report on consumer sentiment also contributed to the gains.

Blue-chip stocks were led higher by strength in the shares of Alcoa (AA: chart). The aluminum giant continued recent advance, posting a gain of 4.3% after it announced it will withdraw its acquisition bid for Alcoa (AL: chart).

Another Dow member, General Electric (GE: chart) added 2.3% after reporting better-than-expected Q2 revenues. In addition, GE said it had raised the buyback plan to $14 billion and confirmed its Q3 outlook. Among other gainers on the Dow, Caterpillar (CAT: chart) gained 1.4%, Exxon Mobil (XOM: chart) added 1.2%, and Verizon (VZ: chart) rose 0.9%.

Housing stocks posted significant strength Monday morning. Centex (CTX: chart) and Pulte Homes (PHM: chart) were some of the most notable gainers, rising 4.8% and 3%, respectively. At the same time, the tobacco, health insurance, and airline sectors posted losses. Airline stocks also declined, as the price of oil climbed back above the $73 a barrel level.

On the Nasdaq, Microsoft (MSFT: chart) fell 1.1%, weighing on the tech-heavy average. RadioShack (RSH: chart), consumer electronics retailer, fell 5% on broher downgrade. However, Amgen (AMGN: chart) rose 2.7% after the biotechnology company lifted its buyback program by $5 billion.

In late morning trading Friday, the Dow rose 41.29, or 0.30%, to 13,903.02 after reaching a new trading high of 13,910.26. The Standard & Poor''s 500 index rose 3.50, or 0.23%, to 1,551.20, and the Nasdaq composite index slipped 1.11, or 0.04%, to 2,700.62.


[R]Business inventories rose 0.5% in May.[/R]
Friday morning, the Department of Commerce released its report on business inventories and sales in the month of May, showing that inventories increased by more than economists had been expecting. The report showed that inventories rose 0.5 percent in May following an unrevised 0.4 percent increase in April. The increase in inventories came in above economist estimates of an increase of about 0.3 percent.

The bigger than expected increase in inventories was partly due to increases in inventories of retailers and merchant wholesalers, which rose 0.6 percent and 0.5 percent, respectively. The Commerce Department also said that business sales rose 1.3 percent in May after rising 0.7 percent in the previous month. Manufacturers, retailers, and merchant wholesalers all reported sales growth of at least 1.0 percent. The report also showed that the business inventories/sales ratio edged down to 1.26 in May from 1.27 in April. The ratio was unchanged from May of 2006.


[R]9:45AM Wall Street opened lower, hurt by profit taking and weak economic data.[/R]

Wall Street started trading below the flat line Friday, reflecting profit taking after the record rally Thursday and a bigger-than-expected drop in monthly retail sales. General Electric (GE: chart) failed to offset the negative sentiment. Dow component rose 2.8% after it announced it will exit its U.S. subprime mortgage business and lifted its buyback program to $14 billion. Among blue-chips, Alcoa (AA: chart) rose 2.6% after the aluminum giant withdrew its bid for Alcan (AL: chart), following a higher bid from Rio Tinto (RTP: chart).

The dollar hit a new low vs. the euro of $1.3811, following the release of weak retail sales numbers. In early trading, the Dow Jones industrial average slipped 4.23, or 0.03%, to 13,857.50 but managed to reach a new trading high of 13,871.48 in the opening minutes of the session. The Standard & Poor''s 500 index fell 1.01, or 0.07%, to 1,546.69, and the Nasdaq composite index fell 4.23, or 0.16%, to 2,697.50.