8:40AM New York – Home Depot profit declines and AIG plans to raise $20 billion.

U.S. stocks are expected to open lower on a decline in profit from Home Depot, crude prices hovering near a record level and worries related to the current credit market crisis.

European markets at mid day fell between 1% and 1.6% as crude oil traded at a new record in the morning trading in Europe and before the market hours in New York. Airlines, transportations and industrial companies declined.

Air France fell 3%, British Air fell 1% and discount carrier Ryanair Holdings dropped 3%. Macquarie group, one of the largest financial services companies in Australia tumbled 7% after the soon-to-be appointed chief executive Nicholas Moore sounded a skeptical note to meet or beat annual profit of A$1.8 billion in the last year.

AIG said that it may raise up to $20 billion after it is finished with the current bond offering. Only two weeks ago AIG was planning to raise only $11 billion and was indicating investors that it has enough surplus capital to fight the current credit market malaise. AIG reported losses in the last two quarters totaling $13 billion. AIG initially suggested that it may raise $11.9 billion in new capital and then raised the amount to $12.5 billion and now it is looking to raise $20 billion. This offering comes at a time when the stock has lost nearly one third of its value and more losses may be announced in the second quarter of this year.

AIG stock (AIG: chart) fell in the pre-market trading by 35 cents to $38.60.

Home Depot, the largest hardware retailer chain, reported first quarter sales decreased 3.4% to $17.9 billion and consolidated net earnings fell to $356 million or 21 cents per share from $1.0 billion or 53 cents per share. The current quarter included one-time charge of $543 million to close 15 stores and reducing the new store development by 50.

Same store sales in the quarter fell 6.8% with the number of customer transaction declining 1.3% and average ticket item dropped 2.8% to $57.36.

Home Depot stock (HD: chart) fell 62 cents to $28.15 in the pre-market trading.

DryShips Inc, Greek dry bulk shipper said first quarter revenues rose 62.6% to $232.1 million from $86.7 million a year ago. Net income in the quarter jumped 61.5% to $176.3 million or $4.61 per diluted share compared to net income of $67.8 million or $1.91 per share, a year ago.

DryShips Inc stock (DRYS: chart) added $2.66 to $107.66.

Asian markets

In Tokyo Nikkei 225 Index closed lower 109.52 or 0.77% to 14,160.09, in Hong Kong Hang Seng index decreased 572.77 or 2.23% closed to 25,169.46. In Australia ASX 200 index lower 41.30 or 0.69% to close 5,908.10. In Malaysia KL Composite index decreased 13.24 or 1.02% closed to 1,287.43.

In South Korea Kospi Index decreased 12.22 or 0.65% to close at 1,873.15, in Thailand SET index closed higher 3.49 or 0.40% to 873.82. Sensex index in India decreased 204.76 or 1.17% to 17,230.18. Market of Indonesia was closed today.