4:15PM Emerging and European markets advance but the U.S. market languishes.

- DOW DOWN 0.32 to 11,076.02
- NASDAQ UP 0.49 to 2,267.03
- S&P UP 2.55 to 1,284.13

- Bond yields, 10-year 4.785% and 30-year yield 4.767%
- AMD down 7% and Apple Computer up 4%.
- Energy sector led advancers. Retailers, financials and select railroads led decliners.
- April crude up $1.81 to $61.77 per barrel and natural gas jumped 36 cents $7.01 mBTU.

- Emerging markets recover.
- Russia up 2.54%, Turkey up 1.65%, Taiwan up 0.83%, India up 0.36%
- Brazil down 0.48%, Mexico up 1.27%, Argentina up 0.48%

Asian markets closed higher led by a strong rally in Tokyo, Seoul and Sydney of 1.53%, 1.38% and 1.26% respectively. In Tokyo shares of automobiles and banking sectors rose on the revised government economic growth estimates for the fourth quarter to 5.4%. Nomura holdings rose 2.5% and Honda, Nissan and Toyota rose 1.4%, 1.3% and 0.8% respectively at the close. In Australia Patrick Corp rose 13% and acquirer Toll Corp, rail and road carrier rose 9% on possible merger between the two corporations. The regulators have laid out revised conditions for the merger to which Toll is likely to respond soon.

Emerging markets enjoyed another day of gain. Taiwan, Thailand, Hong Kong and India rose 0.83%, 0.65%, 0.63% and 0.36% respectively. India’s Sensex scaled a new high and reached 10,803 but traded down from the intra-day peak of 10,884. The liquidity driven rally is supported by inflow of funds of $3.27 billion in the first three months of the year. Retailer Pantaloon jumped 16% and NTPC rose 2% and Bajaj Auto rose 1.6% to Rs 139 and Rs 2,802 per share. On Delhi High Court ruling broadcaster Zee Telefilms rose 5%. Software exporters rose for the second day led by TCS and Wipro gain of 2.7% and 2.6% respectively.

Indexes in Russia and Turkey rebounded after a week of battering. Russian index closed up 2.54% and that of Istanbul Exchange in Turkey rose 1.65%. Markets in Latin America closed higher except in Brazil. Mexico and Argentina raced ahead with 1.27% and 0.48% gains at close. Brazilian market lost more than 6% in the last two weeks and traded higher at mid-day on revised economic growth forecast in the latest survey from the Central Bank. Brazil economy is expected to grow at 3.7% revised from the previous week read from 3.5%. Banks, oil and petroleum and telecom sector stocks were in favor. Petrobras and recently listed TAM and Gol airlines jumped in the trading. In Mexico Televisia and Grupo Modelo traded higher 0.5% and 1.2%. Cemex and Homex jumped up 1.5% and down 1% respectively.

Corning did not revise its financial projection for the current quarter during a presentation to investors. The company has guided 22 cents of earnings on revenue of $1.23 billion in revenue for the current quarter that ends in March. The company stated that it expects LCD flat panel TV to form 19% of its revenue up from 17% from previous forecast for the current. The company expects the glass volume to grow 45% from a year ago from the previous guidance of 40%. The stock has traded as low as $11 and as high as $27 in the last twelve months of trading and closed today at $25.33.


3:00PM Ratings revisions bring buyers to the market.
In the recent months investors have warmed up to stocks in the telecom and telecom equipment and component makers. Avanex and others have managed to sell stocks investors and today Broadwing Corp (BWNG: chart) sold $7.4 million shares at $10 per share and raised $70.1 million. The stock rose 2.5% to $12.51. Domino’s Pizza (DPZ: chart) stated that it has repurchased 5.6 million shares from Bain capital. Bain has reduced its stake from 34% to 28% after this sale. The stock is 2.5%. Duke Energy (DUK: chart) is up 3% on positive comments from Merrill Lynch and upgrade to buy. Energizer Holding (ENR: chart) rose 3% after it received an upgrade to neutral from underweight by J.P. Morgan. Recently priced Brazilian Airline TAM (TAM: chart) on the second of trading is trading above $19. Less than a year ago another Brazilin air, GOL (GOL: chart) was priced at $8 and is now trading near $27.


2:00PM Upgrades and mergers support market enthusiasm.
Ratings upgrades and target price revisions are taking some stocks higher in the early afternoon trading. Apple Computer received ‘buy’ recommendation from Citigroup and positive comments from Piper Jaffray and Bear Sterns. The stock after trading as high as $86.40 has corrected $63. The stock has rebounded $2.40. Nucor (NUE: chart) and Citrix (CTXS: chart) are two other companies enjoying positive comments from brokers. Citrix has jumped 50% in the last twelve months of trading. Mergers after mergers have put stocks in the positive lights this morning. Watson pharmaceuticals(WPI: chart) has agreed to buy Andrx for $1.9 billion in cash and Pinnacle Entertainment (PNK: chart) will buy for $2.1 billion Aztar (AZR: chart).


12:30PM European markets closed higher on mergers.
European markets closed in the positive on merger-and-acquisition deals and speculations. The German DAX 30 climbed 0.9%, boosted by drug maker Schering which rocketed 26% on a takeover bid by a rival company Merck. The French CAC 40 gained 0.8%, while London’s FTSE 100 rose 0.8%, supported by 31% gain in London Stock Exchange on speculations that U.S. exchanges may start a bidding war for it.

Crude oil prices advanced 1% on continuous concerns over Iran’s nuclear program. Light sweet crude April delivery gained 59 cents to $60.50 a barrel. Heating oil gained 3 cents to $1.716 a gallon, while gasoline rose 4 cents to $1.727. Natural gas surged 30 cents to $6.94 per 1,000 cubic feet. Gold prices gained advanced Monday. The precious metal rose $5.60 to $546.90 on the Nymex. In Hong Kong gold fell $2.60 to $543.50. Silver closed at $10.06, up from $9.92. The U.S. dollar traded mixed against other major currencies. The euro traded at $1.1934, up from $1.1911. The dollar bought 119.15 yen, up from 118.99. The British pound was quoted at $1.7306, up from $1.7263.


11:30AM Crude oil prices rise. Treasury yields under pressure.
Stock averages came off early gains, posting some weakness on rising crude oil prices and Treasury yields under pressure. Crude jumped 1% to $60.55 per barrel, and its advance tempered buying in some market areas. As a result the Energy sector rose 1.4%, helping the indices keep gains. The Dow Jones held on to the modest gains of early morning, up 18 points. The Nasdaq was flat at around 10 points. The biggest Dow Jones gainer was DuPont (DD: chart), rising 1.2% to nearly a 3-week high. Exxon Mobil (XOM: chart) sustained early gains, currently up 1%. Boeing (BA: chart) was higher by 0.8%, climbing to a new 52-week high. More than a third of Dow components moved to the downside. The most notable decliner was American Express (AXP: chart), which is down about 0.8%. Altria (MO: chart) and Microsoft (MSFT: chart) were both down around 0.6%.

Among other stocks, Andrx Corp. (ADRX: chart) rose 11% on news that Watson Pharmaceutical (WPI: chart) would buy the company for $1.9 billion, or $25 a share in cash. Apple Computer (AAPL: chart) climbed 5% after it was upgraded to buy from hold at Citigroup on expectations that new product introductions will provide a strong start of Q2. The company is expected to introduce a new PowerMac and Intel chip-based iBooks, as well as a new video iPod product in April. Aztar (AZR: chart) jumped 24% after casino operator Pinnacle Entertainment ((PNK: chart) agreed to buy the company for $2.1 billion cash, assuming debt. North Fork Bancorp (NFB: chart) rose 17% on agreement to be acquired by Capital One (COF: chart) for $14.6 billion in cash and stock. Capital One’s shares fell nearly 6%. Schering AG (SHR: chart) soared 26% after rival German drug maker Merch KGaA made a hostile bid for the company for $17.4 billion.