[R]11:30AM Market averages traded mixed. Tech and oil stocks advanced.[/R]

U.S. market averages erased some of the earlier losses to turn mixed in late morning trading, as slightly weaker-than-expected GDP report raised hopes that the Fed Reserve will reduce interest rates in the near future. Fed Chairman Ben Bernanke is expected to give a speech Friday in Wyoming.

By sector, financial stocks posted significant losses on continuous concerns about credit markets. Goldman Sachs (GS: chart) fell 0.8%, Morgan Stanley (MS: chart) lost 0.9% and Merrill Lynch (MER: chart) dropped 0.5% Lehman also reduced its earnings estimates for Wall Street''s top investment banks. Shares of Freddie Mac (FRE: chart) dropped 3.4% after the mortgage giant posted 45% profit decrease.

At the same time, tech stocks moved to the upside on optimism business spending will boost tech profits despite turmoil from the housing sector. Among tech stocks, Dell (DELL: chart) rose 2% ahead of quarterly earnings release after the closing bell. On average, analysts expect Dell will earn 30 cents a share on $14.6 billion in revenue for Q2.

Still in the sector, International Business Machines (IBM: chart) added 1%, Intel Corp. (INTC: chart) was up 1.5% and Hewlett-Packard (HPQ: chart) rise 1%. Mobile phone maker Motorola (MOT: chart) surged 3% after Lehman Bros upgraded its stock to overweight from equal weight on hopes of higher production in Q3. Oil stocks were pushed up by higher crude oil price.

Among other notable movers, Coldwater Creek (CTWR: chart) tumbled 24% on broker downgrade from buy to hold after the company posted Q2 profit drop. Chico's FAS (CHS: chart) slipped 11% after posting 28% earnings drop in Q2 and warned of weaker Q3 results.

The Dow Jones industrial average was up 7.89 points, or 0.06 percent, at 13,297.18. Wal-Mart (WMT: chart) was a leading loser on the blue-chip average, posting a decline of 1.7% after Merrill Lynch downgraded it to sell, citing margin erosion at the company's core U.S. division. The Standard & Poor's 500 Index was up 2.17 points, or 0.15 percent, at 1,465.93. The Nasdaq Composite Index was up 22.56 points, or 0.88 percent, at 2,585.72.


[R]09:45AM Wall Street opens sharply down on profit-taking ahead of Bernanke’s speech.[/R]

Wall Street opened sharply lower, reflecting profit-taking and nervousness ahead of Fed Reserve Chairman Ben Bernanke''s speech Friday. The Fed''s objectives remain unclear yet, but Bernanke has already confirmed that the Federal Reserve is closely watching markets and is ready to act if necessity should arise.

Financial stocks moved top the downside after Lehman Bros (LEH: chart) cut its profit estimates for 2007 and 2008. Lehman also reduced its earnings estimates for Wall Street''s top investment banks. Following the news, Goldman Sachs (GS: chart) fell 1.5%, Morgan Stanley (MS: chart) lost 2% and Merrill Lynch (MER: chart) dropped 1.4%. Among other stocks driven by analyst comments, Dow member Wal-Mart (WMT: chart) fell 1.7% after Merrill Lynch downgraded it to sell, citing margin erosion at the company''s core U.S. division.

Weak quarterly earnings from Freddie Mac and H&R Block built on troubles in mortgage lending, also triggering sell-off. H&R Block (HRB: chart) fell 2% after it said its Q1 loss widened compared with last-year figures as it struggled with its mortgage lending arm. Mortgage giant Freddie Mac (FRE: chart) posted Q2 net income drop of 45% mainly due to a higher provision for credit losses. The stock slipped 3.3%.

In major economic news, the Commerce Department said Q2 gross domestic product rose at its fastest pace in more than a year, but came in slightly below expectations. The GDP was revised up 4%, vs. estimates of an upward revision of 4.1%. According to another report, U.S. jobless claims surprisingly rose last week to the highest level since April.

In early trading, the Dow fell 79.82, or 0.60%, to 13,209.47. The Standard & Poor''s 500 index dropped 8.98, or 0.61%, to 1,454.78, and the Nasdaq composite index slipped 11.98, or 0.47%, to 2,551.18. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 4.52% from 4.56% late Wednesday.


[R]09:00AM U.S. stock futures pointed to a lower opening. Robust GDP figures helped limit losses.[/R]

U.S. stock futures pointed to a weak opening Thursday after prior session’s strong rally on bargain-hunting. Market sentiment was hurt by growing uncertainty about how soon the Fed may cut interest rates. However, indexes pared losses after data showed that economy continued to grow in Q2 despite the subprime home-loan crisis.

The Commerce Department said that U.S. economy bounced back in Q2, growing at a 4% annual real growth rate, led by trade and business investment. The upward revision to GDP was attributed to an improved trade balance and to the biggest increase in investments in commercial buildings in 26 years. Consumer spending, government spending and inventories also contributed, while housing was the biggest drag. Economists had been expecting GDP in Q2 to be revised to 4.1% from the 3.4% growth rate originally estimated a month ago.

Lehman Brothers (LEH: chart) also weighed on sentiment after cutting its profit estimates for 2007 and 2008. It also said that earnings at the U.S. biggest securities firms will be hurt by credit-market woes. Lehman reduced its earnings estimates for Wall Street''s top investment banks. Following the news, Goldman Sachs Group (GS: chart), Morgan Stanley (MS: chart) and Merrill Lynch & Co. (MER: chart) moved to the downside.

In corporate news, Motorola (MOT: chart) shares rose 0.4% as Lehman Brothers upgraded its stock to overweight from equal-weight on recovery hopes. On the earnings news front, H&R Block (HRB: chart) said its Q1 loss widened compared with last-year figures as it struggled with its mortgage lending arm. Mortgage giant Freddie Mac (FRE: chart) posted Q2 net income drop of 45% mainly due to a higher provision for credit losses.