[R]3:00PM April same-store sales rise better than expected.[/R]
Gasoline price and rising interest rates did stop consumers from spending in April. Apparel, spring goods and discount goods. Discounters such as Wal-Mart, Target and Costco reported better than expected sales in April. Wal-Mart (WMT: chart) reported 6.8% April same-store sales growth. Total sales in April rose 16% to $26 billion. Target (TGT: chart) reported 10% rise in April sales. Mall based department stores Nordstrom and Neiman Marcus reported sales rise of 7.3% and 9.5% respectively. Strong employment level and rising portfolio yields attracted wealthy shoppers to the luxury retailers. Teenager retailers showed one of the strongest gains in same-store sales. Abercrombie & Fitch reported 17% rise in store sales led by Abercrombie kids. American Eagle store sales in April rose 19% and total sales rose 25% in the month. Chico’s April sales rose 5.4% and failed to meet expectations of 7.7%. Chico’s declined 18% on heavy trading volume.

[R]12:30PM European markets closed higher on oil majors.[/R]
European markets finished Thursday higher, boosted by major oil companies, record-high copper prices and strong performance of U.S. markets. Strong gains in mining, chemicals and utility companies offset concerns about possible interest-rate hikes. Shares of oil giants Royal Dutch Shell and Total rose by 0.4% and 1.7% respectively, reflecting stronger-than-expected earnings. Upbeat Q1 results from chemicals company BASF sent the stock up 2.4%. The Bank of England and the European Central Bank kept interest rates steady as expected. The German DAX 30 rose 1.2%, the French CAC 40 gained 0.8%, and London FTSE 100 added 0.5%.

Crude oil prices dropped below $70 on growing gasoline inventories. Light sweet crude June delivery fell $2.83 to $69.45 a barrel. Gasoline lost 10 cents to $1.985 a gallon. London Brent dropped $1.02 to $71.63. European gold futures advanced on weaker dollar. In London the precious metal rose to $673.35 per troy ounce, up from $664.60. In Zurich gold climbed to $673.85 from $668.05. Silver closed at $13.90, up from $13.80. The U.S. dollar lost ground in European trading. The euro traded at $1.2682, up from $1.2625. The dollar bought 113.54, down from 113.64 yen. The British pound was quoted at $1.8487, up from $1.8411.


[R]11:30AM Stocks moved lower in late morning.[/R]
Upbeat data on worker productivity and strong April retail sales boosted stocks Thursday, sending the three major averages firmly higher with the Dow up to a six-year high. A sharp decline in oil prices below $72 and better-than-expected earnings from Tyco also generated positive sentiment.

The transportation sector showed a significant strength on weak oil prices, as it offset recent concerns about higher fuel costs. The Dow Jones Transportation Average rose 2.8%, rising to a record intraday high. The gold sector also moved notably higher, benefiting from a sharp rise in the price of the precious metal to $676.50 an ounce. Some disk drive stocks made a strong performance, with Iomega (IOM: chart), M-Systems (FLSH: chart) and SanDisk (SNDK: chart) posting notable gains. Semiconductor, biotechnology, and health insurance stocks gained strength as well.

However, some individual stocks came under pressure, with shares of ViroPharma (VPHM: chart) currently down 15.9% on disappointing earnings. Former Dow component Eastman Kodak (EK: chart) declined 5% after reporting wider Q1 net loss. In late morning trading, the Dow Jones industrial average gained 46.02, or 0.4%, to 11,446.30, near its highest levels since January 2000. The Standard & Poor\''s 500 index was up 5.14, or 0.39%, and the Nasdaq composite index surged 16.01, or 0.69%. Bonds fluctuated, with the yield on the 10-year Treasury note unchanged at 5.15% from late Wednesday.


[R]10:30AM Sensex experiences volatile session to slightly edge up.[/R]
Sensex in India finished 36.91 points higher, or 0.3% up, at yet another record high of 12,347.63. BSE recorded a turnover of Rs 5,119 crore ($1.3 billion) today down from Wednesday’s Rs 5,211 crore ($1.28 billion). Refinery stocks soared on the report that petrol prices at pump stations might go up, the moment the assembly elections are over next week. Reliance Industries surged 4% to Rs 1,076.05 to pull off a peak of Rs 1,122 for the stock on a heavy volume of 4.5 million shares. Other refineries also attracted attention. BPCL advanced 7.8% to Rs 590, HPCL gained 4% to Rs 346 and IOC rose 2.9% to Rs 592.90.

ICICI Bank also gained 1.9% to Rs 661 on strong quarterly results. HDFC Bank added 2% to Rs 880. Other banks rallied in the session as well. Corporation Bank rose 7% and Bank of India and Union Bank of India gained 5%. Among the decliners were GACL, which lost 6% on high volumes of 4 million shares in the process of its proposed merger with Ambuja Cement Eastern. Other decliners were Grasim, down 1.1% to Rs 2,404, and ACC, which also lost 1.1% to Rs 974. India Cement plummeted 8.6% to Rs. 209.40, following NSE trade action.In automotive shares, Maruti Udyog lost 1.4% to Rs 949.50 and Hero Honda declined 1% to Rs 836, both companies traded lower on expected higher fuel prices. Century textiles lost 6% after the company reported 41% decline in fourth quarter profit.


[R] 9:45AM Stocks opened higher on strong retail sales.[/R]
U.S. stocks advanced Thursday, reflecting strong monthly retail sales and upbeat earnings reports from companies including Tyco International Ltd. (TYC: chart), Whole Foods Market Inc. (WFMI: chart) and Expeditors International of Washington Inc. (EXPD: chart).

Major retail companies reported better-than-anticipated monthly sales. Wal-Mart (WMT: chart) reported a 6.8% gain in same-store sales that was better than the 5.7% estimate from analysts. Costco Wholesale Corp. (COST: chart) had a 7% gain in same-store sales, beating the 5.5% estimate. Limited posted a 9% increase in same-store sales, better than the 5.2% gain expected. Pacific Sunwear of California (PSUN: chart) had a 14% gain in same-store sales, exceeding the 5.2% estimate from analysts.

A strong upward move by the transportation sector also contributed to the market strength, with the Dow Jones Transportation Average currently up 2.4%. Transportation stocks gained as a drop in the price of oil offset concerns about higher fuel costs, with Expeditors (EXPD: chart) turning in one of the best performances, up 14.3% on strong earnings growth and an increased dividend. Disk drive stocks also moved to the upside in early trading, as reflected by the 1.6% gain shown by the Amex Disk Drive Index, with Iomega (IOM: chart), M-Systems (FLSH: chart) and SanDisk (SNDK: chart) leading the sector up. Biotechnology, computer hardware, and semiconductor stocks also showed strength. Natural foods retailer Whole Foods Market (WFMI: chart) rose 9.1% on strong quarterly profit and lifted 2006 sales outlook, giving both the Nasdaq and the S&P 500 one of their biggest boosts. The Dow Jones industrial average was up 0.40%, at 11,445.58, a fresh six-year high. The Standard & Poor\''s 500 Index rose 0.34%. The Nasdaq Composite Index gained 0.50%.

[R]Jobless claims rose unexpectedly.[/R]
The Department of Labor released its report on initial jobless claims in the week ended April 29 on Thursday, showing that jobless claims increased unexpectedly. The data may raise some concerns about Friday\''s monthly employment report. The report showed that initial jobless claims rose to 322,000 from the previous week\''s revised figure of 317,000. Economists had expected claims to fall to 310,000 compared to the 315,000 originally reported for the previous week. The less volatile four-week moving average also increased, rising to 314,250 from the previous week\''s revised average of 309,000. With the increase, the moving average rose for the second consecutive week. The report also showed that continuing claims rose to 2.462 million from the preceding week\''s revised level of 2.441 million.


[R]9:00 AM Stock futures indicated a positive market opening.[/R]
U.S. stock futures pointed a higher opening Thursday after government data showed a stronger-than-expected rise in unit labor costs in the first quarter. The market advance followed a weak close yesterday on strong data, renewed interest rate concerns and a couple of disappointing key earnings reports. Economic news will be also in focus today with the Labor Department scheduled to report on first-quarter productivity and the monthly employment data due out on Friday. Positive pre-market sentiment was also generated by retreating oil prices and strong earnings from companies like diversified manufacturer Tyco International Ltd. (TYC: chart) which reported higher-than-expected net income. Tyco also announced a $2 billion buyback. Among other key stocks, Starbucks Corp. (SBUX: chart) is seen in the spotlight after the company reported a 27% rise in quarterly earnings, above analyst estimates, but disappointing April sales. In after-hours trading on Wednesday shares of Starbucks were traded down 1.5%.

At the same time, major retailers began reporting April sales figures. Of the 28 retailers that have reported results so far, 88% beat estimates while 12% missed. Wal-Mart Stores Inc., Costco Wholesale Corp., Pacific Sunwear of California Inc. and Limited Brands Inc. released better-than-expected results. Standard & Poor\''s 500 futures were up 2.4 points, above fair value. Dow Jones industrial average futures were up 19 points, and Nasdaq 100 futures were up 6.25 points.

Crude oil prices dropped below $72 on gasoline inventories increase. Light sweet crude June delivery fell $1.01 to $71.27 a barrel. London Brent dropped $1.06 to $71.59. European gold futures retreated from 25-year highs. In London the precious metal rose to $664.65 per troy ounce, up from $664.60. In Zurich gold fell to $666.45 from $668.05. Silver opened at $13.30, down from $13.80. The U.S. dollar rose in European trading. The euro traded at $1.2587, down from $1.2625. The dollar bought 113.93, up from 113.64 yen. The British pound was quoted at $1.8379, down from $1.8411.

[R]First-quarter productivity growth beat expectations.[/R]
Thursday morning, the Department of Labor released its preliminary report on first quarter productivity, showing growth that exceeded analyst estimates. The report also showed a bigger than expected increase in unit labor costs. The Labor Department said that productivity in the non-farm business sector rose at an annual rate of 3.2 percent in the first quarter compared to a 0.3 percent decline in the fourth quarter. Economists had expected first quarter productivity growth of 3.0 percent. The productivity growth in the first quarter came as an increase in output outpaced an increase in hours. The report showed that output rose 5.8 percent in the quarter while hours increased by a more modest 2.5 percent. At the same time, the report showed that unit labor costs rose by 2.5 percent in the first quarter after increasing at a 3.3 percent rate in the fourth quarter. The increase in unit labor costs exceeded economist estimates of a 1.3 percent increase. The bigger than expected increase in unit labor costs is likely to raise some concerns about the pace of inflation, which may add to recent interest rate worries.