11:30AM Market averages erased early gains on weak energy and tech stocks.
Stock market averages retreated from earlier gains as weakness in energy, consumer discretionary and technology stocks offset the positive sentiment generated by upbeat jobless data. Dow component Exxon Mobile (XOM: chart) was one of the average's weaker components and was down 1.2%. Technology stocks dropped and blue-chip stocks pared gains, with shares of BlackBerry maker Research In Motion (RIMM: chart) down 3.7% after brokerage downgrades. Shares of Home Depot (HD: chart) slipped 1.1%. Yesterday the home improvement retailer said it had found almost 20 years of option grant backdating. Housing stocks also moved sharply lower on brokerage downgrades. Some weakness was also posted by the gold sector, due to lower prices of the precious metal.

On the other hand, some strength emerged in the tobacco sector, with Gallaher Group (GLH: chart) helping to lead the sector higher, up 1.9% on acquisition speculation. Dow component Altria (MO: chart) gained nearly 1%. Among stocks driven by analyst comments, Advance Auto Parts (AAP: chart) was a notable gainer, with the auto parts retailer rising 4.2% after Citigroup upgraded its rating on the company's stock to buy from hold. In contrast, shares of Tellabs (TLAB: chart) dropped nearly 3% after J.P. Morgan downgraded its rating on the communications equipment maker to underweight from overweight. In late morning trading, the Dow Jones industrial average was up 0.80, or 0.01%, at 12,310.05. The Standard & Poor's 500 index remained near a six-year high but was down 1.21, or 0.09%, at 1,411.69, and the Nasdaq composite index was down 9.85, or 0.40%, at 2,436.01. Bonds were little changed, with the yield on the benchmark 10-year Treasury note flat at 4.48% from late Wednesday.


10:30AM The Sensex nudged higher on Thursday in a volatile trading session.
The Sensex on BSE finished 23.03 points, or 0.17%, at 13,972.03. The market-breadth, was almost even. As 1,286 shares declined on BSE, 1,283 shares rose and 68 stocks were unchanged. From the 30-share Sensex group, 17 advanced while the rest declined. The turnover on BSE was Rs 3,787 crore, lower than Rs 4,561 crore on Wednesday. The turnover on NSE was Rs 7,480.37 crore, lower compared to Rs 8,702.49 crore on Wednesday.

Economic news

Airbus on Thursday said it plans to invest some $1 billion in India, setting up an engineering facility and a pilot training school. The European airplane maker had committed to investing in India as part of a deal with the government, which is purchasing 43 Airbus aircraft for the state-run Indian Airlines in a deal valued at $2.25 billion.

J.P. Morgan Chase & Co. said that it had invested $60 million in a Mumbai luxury residential property as part of a growth plan in the country. This is the largest investment ever made in a Mumbai real estate firm, prompting the growing importance of India to financial institutions worldwide.

Most active

Reliance was the most active stock with a turnover of Rs 147 crore followed by Indiabulls, Parsvnath, Jaiprakash and Tech Mahindra.

Advancers

Reliance Industries gained 1.4% to Rs 1,298.45. A report by brokerage CLSA said, Reliance Industries recently submitted revised field development plan indicated potential crude reserves of 1.6 billion barrels in the block. Also, there were unconfirmed reports that the company is close to acquiring Adani Retail. Adani has retail infrastructure that may help Reliance in its network of stores in Gujarat. Adani Enterprises jumped 5% to Rs 232.50.

Hindalco Industries rose 3% to Rs 183.30. The stock advanced for the second day in a row following reports that Chinese aluminium imports are rising. NTPC rose 2.3% to Rs 151.50. In a recent report dated 5 December 2006, Merrill Lynch has raised the price target on the stock.

Tata Motors gained 1.2% to Rs 892 in the last one hour of trade after being subdued for the most part. BHEL added 1.6% to Rs 2,665. The stock after reaching intra-day record high 2,668. HDFC Bank rose 1% to Rs 1,100. ICICI Bank advanced 0.3% to Rs 874. ICICI Bank today said its international assets will grow to 25% of its total assets, from the current 16%. State Bank of India also edged higher 0.4% to Rs 1,343.90. The bank could raise fresh equity capital in the fiscal year starting next April, once the banking law is amended.

Gujarat Ambuja Cements moved 1% higher to Rs 141.50. Holcim, the world second-largest cement maker, is looking to raise its stake in Gujarat Ambuja Cements, said a Holcim official in a report.

Decliners

Infosys shed 1.1% to Rs 2,220. Reliance Communications shed 1.6% to Rs 455. It added 1.35 million new subscribers in November (CDMA plus GSM based). Automakers were under pressure. Hero Honda lost 2.2% to Rs 750 and Bajaj Auto slipped 0.6% to Rs 2,692.

Housing finance large-cap HDFC shed 1.4% to Rs 1,566. Great Eastern Shipping lost 1.2% to Rs 227.05. It said on Thursday, it had signed a contract to buy a product tanker of 29,998 dead-weight tonnage. Marico lost 0.6% to Rs 546.50. A block deal of 1 lakh shares was executed in the stock on BSE, at Rs 550 per share.


9:45AM Stocks opened higher, boosted by jobs report.
Stock markets opened higher, bolstered by a bigger-than-expected drop in jobless claims, easing concern about weakness in the job market ahead of November employment report tomorrow. A decline by the price of oil also helped generate positive mood. Crude oil prices fell 42 cents to $61.77 on expectations of milder weather and higher refinery capacity use.

In corporate news, shares of drug maker Eli Lilly (LLY: chart) dropped nearly 1% after its 2007 earnings forecast fell short of estimates. Fannie Mae (FNM: chart), the largest U.S. mortgage-finance company, rose 2.8% after it said it overstated earnings by a much lower figure than expected. Boeing Co. (BA: chart) shares were top gainers on the Dow, rising 0.8% after Delta Air Lines Inc. said it would order 10 Boeing 737-700 aircraft but would sell others. In addition, Boeing said British carrier First Choice Airways had ordered two more Boeing 787-8 Dreamliner planes.