4:30PM NY and 10:30PM Frankfurt – GDP growth estimate for second quarter was revised lower to 2.6% from 2.9%.

-Yield on 10-year bond closed at 4.63% and 30-year bond closed at 4.77%.

-Crude oil dropped 20 cents to $62.76 per barrel and natural gas November futures dropped 28 cent to close at $5.38 per mBtu.

-Gold rose $7.40 to $605, silver gained 3 cent to $11.735 and copper dropped 6 cent to $3.428.

-Asian Markets closed higher across the region led by gains in Korea with 0.8% and Indonesia with 0.7%. Australia and Singapore rose 0.4%. Taiwan dropped 0.9% and Thailand lost 0.74% at close.

-European Markets edged higher at close with 0.7% rise in the UK, 0.6% gain in Norway and France and Netherland rose 0.13%. Spain dropped 0.15%.

-Latin American Market rose across the region led by rise of 1.1% in Brazil, 0.8% in Argentina, 0.5% in Mexico and Chile. Canada rose 0.6% on strength in tech and banking stocks.

14:00PM Airlines, brokers, utilities led decliners.
U.S. stocks turned mixed after the Dow Jones Industrial Average hit record highs and lifted the S&P 500 Index to a 5 1/2-year peak. The Dow briefly topped its all-time closing high of 11,722.98 in early trading, but has shown a notable decline since then. An increase by the price of oil also generated some selling pressure. Crude for November delivery gained 56 cents at $63.52 a barrel. As a result of the price increase, significant weakness emerged in the oil-sensitive airline sector, as reflected by the 1.8 percent loss currently being shown by the Amex Airline Index. Disk drive stocks moved notably lower, offsetting a 1.6% gain that it posted on Wednesday.

SanDisk (SNDK: chart) and Msystems (FLSH: chart) stood out as two of the disk drive sector''s worst performances, both down 3%. Weakness posted by some retail, housing, and networking stocks also contributed to the downward mood. Among retail stocks, AutoZone (AZO: chart) fell 2.3%. Meanwhile, energy stocks bucked the downtrend by the broader markets, benefiting from the increase by the price of oil. In early afternoon trading, the Dow was down 13.05, or 0.11% at 11,676.19. The S&P was down 1.33, or 0.10%, at 1,335.26. The Nasdaq, down 4.94, or 0.22%, at 2,258.45

12:30PM European shares closed mostly higher.
European markets closed largely in the positive, lifted by strong commodities-related stocks. Short-lived rally on Wall Street also provided support, helping to offset weakness in utility shares. The German DAX 30 edged down by 0.1%, dragged by 6.1% decline in Infineon Technology shares after Taiwan''s BenQ, said that it is discontinuing funding for its German mobile phone unit in order to stem unsustainable losses. The French CAC 40 added 0.1%, helped by the automotive sector. Renault gained 1.5% following statement by General Motors’ CEO that talks on joining the Renault-Nissan alliance may extend beyond a mid-October deadline set by the companies. London FTSE 100 rose 0.5%, boosted by oil majors like BP, Royal Dutch Shell and miners, such as Rio Tinto and BHP Billiton, rising for a third session in a row. Royal & Sun Alliance also helped boost the index, with the insurance group rising 4.8% after it said it will sell its U.S. operation to an entity set up by the unit''s management team for 158 million pounds.

Oil prices hovered round $63 a barrel. Light sweet crude November delivery lost 4 cents to $62.92. London Brent November contract rose 39 cents to $62.60.Gasoline fell 3 cents to $1.51 a gallon, while heating oil was steady at $1.7144. Natural gas futures dropped 13 cents to $5.542 per 1,000 cubic feet. The U.S. dollar extended strength versus major currencies. The euro traded at $1.2684, down from $1.2704. The dollar bought 117.88 yen, up from 117.45. The British pound stood at $1.8732, down from $1.8885. European gold also advanced. In London the precious metal traded at $604.40, up from $591.30 per ounce. In Zurich gold traded at $603.75, up from $592.85. Silver closed at $11.60, up from $11.40.


11:30AM Market rally faded on profit taking.
After a short-lasting rally, U.S. stock markets lost direction as investors turned to profit taking. In early trading, the Dow briefly topped its record closing high of 11,722.98, but was unable to move significantly above that level and has moved back to the downside since then. Earlier the 110-year-old Dow Jones industrial average rose to 11,724.86, pulling past its previous record closing high of 11,722.98 set on January 14, 2000. In late morning, the Dow was up just 1.92, or 0.02%, at 11,691.16. The S&P, up 0.09, at 1,336.68, is still 190 points below its closing high of 1,527.46, although it is trading at a 5 1/2-year high. The Nasdaq, up 0.18 at 2,263.57, is not expected to approach its high close of 5,048.62 any time soon.

Among the most notable Thursday''s gainers, Resources Connection (RECN: chart) jumped 14% after reporting Q1 net earnings of $11 million, or 22 cents a share, compared with $15.1 million, or 29 cents a share a year ago. Intel (INTC: chart) shares rose 1.4% after Citigroup raised its stock price target for the company, citing an improved PC industry environment for the third quarter. Energy Conversion Devices (ENER: chart) rose 9% after the company increased the number of independent directors on its board.

On the side of the losers, Tvia (TVIA: chart) plunged 58% after the provider of digital display processors said it expects Q2 revenue of $300,000 to $400,000, compared to Q1 revenue of $5.1 million, citing shortages of LCD panels. American Greetings (AM: chart) dropped 8.5% as the company swung to a Q2 loss of $10.5 million, or 18 cents a share, from year-ago income of $3.2 million, or 5 cents, missing estimates. Sales fell to $360.1 million from $385 million. Family Dollar Stores (FDO: chart) reported Q4 earnings of 26 cents a share, up from a year-ago profit of 18 cents a share, beating estimates of 23 cents. Sales rose 10.3%, while same-store sales increased 4.9% in the quarter. For September, the company projected same-store sales growth of roughly 2%, below a previous plan for growth of 3% to 5%. The stock dropped 3%. HB Fuller (FUL: chart) slipped 5.5% after its stock was downgraded to neutral from overweight at J.P. Morgan, citing valuation. McCormick & Co (MCK: chart) fell 3.6% following a downgrade at Merrill Lynch to neutral from buy.


10:30AM The Sensex closes marginally higher on F&O derivatives.
The Sensex on BSE advanced 13.83 points, or 0.1%, to settle at 12,380.74. The market breadth was positive. For 1,358 shares that advanced 1,122 shares declined and 72 shares remained unchanged. The market traded in a range of 91 points. The turnover on BSE was Rs 3,578.65 crore, higher than Rs 3,279 crore on Wednesday. The turnover on NSE was Rs 8,583 crore.

[Stocks in focus

Banking stocks were in highest demand. HDFC Bank jumped 4.5% to Rs 940, State Bank of India gained 2.6% to Rs 1,025 and ICICI Bank rose 2.3% to Rs 704.

[Advancers