[R]9:45AM Wall Street opened above the flat line as bond yields declined amid 4-year low existing home sales.[/R]

U.S. stock markets opened above the flat line, as bond yields declined amid data showing that sales of existing homes hit a 4-year low in May, while the median home price fell for a record 10th month in a row.

The National Association of Realtors said that sales of existing single-family homes and condominiums dropped by 0.3 % to 5.99 million units in May, the slowest sales pace since June of 2003. The median home price fell 2.1% to $223,700 from a year ago. The data added to investor optimism that the Fed Reserve will leave interest rates unchanged.

A broker upgrade of General Motors also generated positive sentiment. Goldman Sachs raised its rating on the stock to buy from neutral, saying there was little downside for the company''s stock. GM (GM: chart) shares jumped 3%.

On the earnings news front, Walgreen (WAG: chart) rose 1% after reporting a better-than-expected 20% profit rise in Q3, lifted by a growing market share in its top products and an increase in prescription sales. The U.S. biggest drugstore chain earned $561.2 million, or 56 cents per share, up from $469.2 million, or 46 cents per share a year ago. Revenue rose 13% to $13.7 billion from $12.2 billion last year, but fell short of expectations. Analysts had been expecting a profit of 54 cents on revenue of about $13.8 billion.

In mid-morning trading, the Dow Jones industrial average rose 62.18, or 0.47%, to 13,422.44. The Standard & Poor''s 500 index rose 3.84, or 0.26%, to 1,506.40, and the Nasdaq composite index rose 4.62, or 0.18%, to 2,593.58. The 10-year Treasury note''s yield fell to 5.08% from 5.14% late Friday.


[R]9:30AM The FTSE loses ground Monday on weakness in mining stocks.[/R]

The UK market was lower by mid-day on Monday. The FTSE 100 dipped 0.4% and was at 6,540.4.

Advancers

ICI was one of the few companies on the plus side, 1.4 per cent higher supported by talk that Akzo Nobel was mulling an increase in its bid for the ICI to the 700p mark thought by some investors as the level where the deal can be done.

Housebuilders were buoyant after Persimmon came out with strong figures. The company announced it expected interim revenue to reach 1.5 billion pounds with 8,000 units sold, matching forecasts despite rising interest rates.

Decliners

The mining sector took a serious hit after Cazenove guided weaker metal prices and lowered its recommendations on Anglo American and Antofagasta. The brokerage house reduced its stance on Antofagasta to underperform from in-line, stating that the stock looked overestimated. Antofagasta declined 1.5%. Anglo American was reduced to in-line from outperform and the stock slid 2.1%.

Pendragon plummeted almost 11% after it announced sustained weakness in consumer spending would erode its annual operating profit by 20 million pounds this year and by a further 10 million pounds in 2008.

Cadbury Schweppes dipped further as lack of news on bidders for its soft drinks arm disappointed i investors. The company which is the biggest confectioner in the world shed 1.8%.


[R]9:00AM Market to open slightly higher, supported by falling oil and General Motors.[/R]

U.S. stock futures pointed to a moderately higher opening on Monday, supported by a broker upgrade for General Motors (GM: chart) and a decline in crude oil futures. Shares of the auto maker advanced 3% in pre-open trading after it was upgraded to buy from neutral at Goldman Sachs. Chevron (CVX: chart) also gained on positive analyst comment. Banc of America Securities raised its rating on the stock to buy from neutral, citing the group''s deepwater activities.

In other corporate news, Dow Jones & Co. (DJ: chart) and News Corp (NWS: chart) held ''intense'' talks related to the protections over the editorial independence of The WSJ. In an expected move, Jones Apparel Group (JNY: chart) announced late Friday a decision to sell Barneys New York for $825 million. S&P 500 futures slipped 0.6 of a point at 1,519.90, the Nasdaq 100 futures rose 3 points at 1,951.00 and the Dow industrial futures rose 9 points.