[R]2:30PM NY, U.S. Market Movers[/R]

Amazon.com (AMZN: chart) shares climbed 5.9% after a Deutsche Bank Securities upgraded the online retailer, saying investments in technology in the past few years is about to pay off. The broker hiked its price target to $50 from $37.

Apollo Group (APOL: chart) rose 7.8% after a Banc of America Securities said recent stock weakness is overdone, given the for-profit education provider''s growth and pricing power opportunities. The upgrade offset negative news from the company, which said it received a warning from Nasdaq that it is not in compliance with listing requirements due to a delay in filing its second-quarter financial report. The firm, which cited valuation, also lifted its price target on the stock to $51 from $49.

Aquantive (AQNT: chart), online advertising company, shares soared 14% as analysts upped ratings on the estimation that Google Inc.''s recent $3.1 billion purchase of rival DoubleClick could mean aQuantive is undervalued and will be bought out soon.

Fremont General Corp. (FMT: chart) said that it agreed to sell about $2.9 billion of sub-prime mortgages and entered into exclusive talks to sell its residential lending business to the same unnamed party, and its share rose 27.2%. Fremont said the loans represent the bulk of sub-prime loans marked for sale but not yet sold. The loans are being sold at a discount, resulting in a pretax loss of about $100 million.

JDA Software Group Inc. (JDAS: chart) shares soared 15.8% after the software company said that it expects to post better-than-expected first-quarter results. The company sees adjusted earnings of 26 cents to 28 cents a share on revenue of $89.7 million to $90.7 million.

Onstream Media Corp. (ONSM: chart), provider of video streaming and webcast services, said that it was selected by digital media software maker Adobe Systems Inc. as one of five members of the Adobe Flash Media Solution Provider program. Under the program, the five members will serve Flash customers, and will be endorsed by Adobe as Flash Media Solution providers. Adobe will provide sales and marketing development and support under the partnership. Shares climbed 6.1%.

Quantum Fuel Systems Technologies Worldwide (QTWW: chart), which makes fuel systems for fuel cell and hybrid vehicles, said it agreed to develop hybrid and alternative fuel vehicles with a Chinese carmaker. Shares rose 17.9%.

Sallie Mae (SLM: chart) said it had accepted a takeover bid from two private-investment funds along with two banks J.P. Morgan Chase & Co. and Bank of America Corp. SLM Corp.''s shares rose 17.6%.

LightPath Technologies Inc. (LPTH: chart), optical networking equipment company said that it expects its fiscal third-quarter sales to decline, hurt by slower orders for its communications products. The company said that it expects sales of $2.9 million for the quarter which ended in March, down from $3.1 million in the same period a year ago. Shares fell 9%.

Parlux Fragrances Inc. (PARL: chart) shares fell 9.3%, after the perfume and beauty products maker said it posted a loss from continuing operations in the third quarter and an analyst said revenue growth was overshadowed by soaring operating costs. The company said net income climbed to $17.9 million, or 98 cents per share, from $6 million, or 28 cents per share, in the prior year quarter. Excluding a gain from the sale of its Perry Ellis fragrance brand, the company fell to a loss of $5.5 million, or 30 cents per share, from a profit of $1.5 million, or 7 cents per share, a year earlier. Revenue grew 15 percent to $43.4 million, from $37.8 million in the year-ago quarter, but analysts polled by Thomson Financial were looking for higher sales of $49.7 million.

[R]1:00AM NY, 5:00 PM Frankfurt European stocks hit multi-year highs in strong financial shares.[/R]
European stock markets hit new multi-year highs on Monday, benefiting from strength in the banking sector, generated by deal talk involving Dutch bank ABN Amro. The Dutch bank giant surged 5.7% after it said it will exceed its 2007 earnings target. The company also stated that it received a letter of interest from Royal Bank of Scotland, Banco Santander Central Hispano and Fortis. Analysts speculated that the consortium will outbid ABN’s other potential bid suitor, U.K. banking group Barclays. Barclays shares rose 1.7%, while Royal Bank of Scotland shares rose 2.4%, Fortis shares declined 1.2% and Santander shares rose 1%. On the earnings front, shares of Royal Philips Electronics rose 5.5% after its quarterly profit beat estimates. The German DAX 30 index climbed 1.8% at 7,338.06 and the French CAC-40, advanced 1.3% at 5,861.97, and the U.K.''s FTSE 100 rose 0.8% at 6,516.20.


[R]11:30AM U.S. market averages rallied on $25 billion buyout deal.[/R]
U.S. market averages moved sharply higher on Monday morning, building on last-week gains. The sentiment was driven by Citigroup, which rose 2.8% on higher-than-expected earnings and a $25 billion buyout deal for Sallie Mae, sending its shares up 18%. Slightly stronger-than-expected rise in March retail sales helped push the Standard & Poor''s 500 index to 6-1/2-year highs. A notable decline by the price of oil also contributed to the upward move, with crude futures down 74 cents at $62.89 a barrel.

By sector, banks, broker/dealers and broad financials led gainers. Financial stocks showed significant strength, with Citigroup (C: chart) helping to lead the sector higher. Wachovia (WB: chart) was another notable advancer, rising 2% on better-than-expected earnings. Strength also emerged in the retail sector, as a report from the Commerce Department showed that retail sales rose 0.7% in March, exceeding economist estimates. The oil price decrease contributed to considerable strength in the oil-sensitive airline sector, as well as a notable decline for oil and gas stocks. Tech shares were helped by Google (GOOG: chart), which rose 2% after it said it expanded its agreement with Clear Channel Communications (CCU: chart) to sell ads on more than 675 radio stations. Amazon.com Inc. (AMZN: chart) rose 5.8% after Deutsche Bank raised its rating on the Internet retailer''s shares.

In deal news, an investor group led by J.C. Flowers & Co. reached a deal to buy Sallie Mae (SLM: chart) in a deal valued at $25 billion, sending its shares up 18%. Quest Diagnostics Inc. (DGX: chart) fell 4.5% amid news that it is buying closely held AmeriPath Inc. The Dow Jones industrial average was up 87.20 points, or 0.69%, at 12,699.33. The S&P 500 was up 11.78 points, or 0.81%, at 1,464.63. The Nasdaq Composite Index was up 19.68 points, or 0.79%, at 2,511.62.


[R]9:45AM U.S. markets opened higher on strong earnings from Citigroup and Wachovia.[/R]
U.S. market posted gains at opening, boosted by $25 billion buyout of student-loan firm Sallie Mae, as well as stronger-than-expected earnings from Citigroup, Wachovia, Eli Lilly and Mattel. Citigroup (C: chart) posted Q1 profit drop of 11%, due to a big charge related to its restructuring plan. However, excluding it, the profit exceeded estimates, thanks to an increase in revenue. The stock rose 3.2% helping the blue chips and other financial stocks. Dow components American Express Co. (AXP: chart) and JP Morgan Chase & Co. (JPM: chart) rose 1.5% and 2.3%, respectively. Wachovia Corp. (WB: chart) gained 1.8% after the bank giant reported earnings rise of $1.20 a share, up from $1.09 a share a year ago.

Strong earnings results were also released by toy maker Mattel (MAT: chart), which said Q1 earnings dropped 60% to 3 cents a share from profit of 8 cents a year ago but beat analyst expectation of a 5-cent loss. Company''s shares gained 1.1%. Pharmaceutical company Eli Lilly (LLY: chart) gained 1.4% after reporting a drop in Q1 profit amid acquisition-related charges and costs from a settlement of product-liability litigation. However, the company posted 4% sales increase. Among companies driven by analyst comments, Amgen (AMGN: chart) rose 1.6% after it was upgraded to overweight from equal weight at Morgan Stanley.

On the economic news front, the Commerce Department reported that retail sales rose 0.7% in March, led by higher spending on clothing, gas and building materials. Retail sales were slightly stronger than the 0.6% expected by economists. According to another report, business-inventories for February gained 0.3%, in line with expectations. In midmorning trading, the Dow Jones industrial average rose 66.39, or 0.53%, to 12,678.52. The Standard & Poor''s 500 index rose 10.27, or 0.71%, to 1,463.12, and the Nasdaq composite index rose 17.72, or 0.71%, to 2,509.66. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.74% from 4.77% late Friday.