U.S. MARKET AVERAGES

After last week of sell-off triggered by weaker than expected earnings from Intel, Yahoo, eBay, Citigroup and General Electric; market was hoping that more earnings news will support rally today.

Earnings from Bank of America, Eaton Corp and American Express failed to excite the market. Traders were in the mood to buy after a steep sell-off in large cap stocks in the previous week.

Ford Motor Company released restructuring plan and announced to lay-off staff of up to 30,000 people by the year 2012 and cut production and assembly capacity by 2008. Traders reacted to the plan with cautious optimism and company stock closed up 42 cents at $8.32, up 5.3%. General Motors stock rose 9% in sympathy.

Markets in Europe closed lower and in Tokyo Nikkei average was down more than 2%.

MOVERS AND SHAKERS

Albertsons Inc. (ABS: chart) agreed to be acquired by a group including grocery store operator Supervalu Inc (SVU: chart) and drug store chain CVS Corp. (CVS: chart) for $17.4 billion in cash and stock. Albertson’s stockholders will receive $26.29 in cash. The company’s shares rose 4.4%.

YAHOO (YHOO: chart) was upgraded at Bear Stearns to outperform from peer perform. The stock gained 1.11%.

Citigroup (C: chart) was downgraded at UBS to neutral from buy. The stock gained 1.1%.

The Sports Authority Inc (TSA: chart) agreed to be acquired by private equity firm Leonard Green & Partners and members of the company''s senior management team for roughly $1.3 billion in cash and assumed debt. The deal values Sports Authority shares at $37.25 each and the transfer is expected to close in the second quarter. The company’s shares soared 20%.

Datawatch Corp (DWCH: chart) reported Q1 earnings of $64,000, or a penny a share, on revenue of $4.7 million, missing estimates of 3 cents a share. The company’s shares dropped 26.4%.

The U.S. Supreme Court rejected Research In Motion’s (RIMM: chart) appeal to reverse a lower-court ruling that found its BlackBerry wireless email device violated patents held by NTP Inc., a Virginia patent-holding firm. The case now moves to a federal district court in Virginia, where a judge will decide whether to reinstate an injunction against the U.S. sale of BlackBerries. RIM’s shares fell 2.6%.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks fell across the region, reflecting an oil price rise to $69 a barrel and cautiousness following the steep declines on Wall Street. The Nikkei recovered from earlier lows to close down 1.2%. Among other regional markets, Taiwan’s Weighted index dropped 1.7%, Hong Kong’s Hang Seng slipped 1.4%, and South Korea’s Kospi fell 1%.

European stocks finished weak but off intraday lows, supported by the strong opening of U.S. markets. The German DAX 30 finished flat at 5,349, the French CAC 40 dropped 0.45%, and London’s FTSE 100 fell 0.2%.

OIL, METALS, CURRENCIES

Crude oil prices retreated on Saudi Oil Minister’s assurance that there is enough supply to meet demand. Light sweet crude for March delivery fell 43 cents to $68.05 a barrel. Heating oil fell nearly 3 cents to $1.8420 a gallon. Gasoline slightly fell to $1.8460. Natural gas dropped 73 cents to $8.55. London Brent declined 55 cents to $65.88.

European gold prices declined after hitting fresh 25-year highs Friday. In London gold traded at $555.70, down from $559.80. In Zurich the precious metal traded at $558.25, down from $561.35. In Hong Kong gold fell $1 to close at $556. Silver closed at $8.92, down from $9.06. In New York gold rose $4.70 to $558.70 per ounce.

The U.S. dollar traded lower against other major currencies. The euro was quoted at $1.2278, up from $1.2075. The dollar bought 114.64 yen, down from 115.40. The British pound was quoted at $1.7848, up from $1.7638.

EARNINGS NEWS