12:30PM European markets dropped on North Korean missiles.
European markets closed sharply in the negative after North Korea launched seven missiles, with traders worried that the disagreement between North Korea and the United States could intensify. Investors were also nervous about interest rates decision ahead of announcement by both the Central European Bank and the Bank of England. In corporate news, Britain''s Alliance & Leicester dropped 5.7% after Credit Agricole said it wouldn''t go ahead with a bid for the U.K. mortgage bank. The German DAX 30 dropped 1.8%, the French CAC 40 climbed 1.3%, and London FTSE 100 rose 1%.

Oil prices rose on international concerns, related to North Korean nuclear testing. Light crude August delivery lost 4 cents to $73.89 a barrel. Heating oil added 1 cent to $2.0330 a gallon, while gasoline gained 1 cent to rise to $2.2230. Natural gas futures fell 5 cents to $6.050 per 1,000 cubic feet. London Brent rose 45 cents to$72.96. The dollar traded higher versus major currencies. The euro traded at $1.2704, down from $1.2791. The dollar bought 115.66 yen, up from 114.58. The British pound stood at $1.8334, down from $1.8446. European gold prices moved lower. In London the precious metal traded at $620.30, down from $621.80 per ounce. In Zurich gold traded at $619.95, down from $621.50. Silver closed unchanged at $11.24.


11:30AM Stocks traded steeply lower on profit taking.
Stocks moved steeply down and the major averages moved firmly into negative territory, as news of a series of missile tests by North Korea led traders to turn to some profit taking. In economic news, the Commerce Department released a better-than-expected report on factory orders. Orders rose by a solid 0.7% in May, rebounding from a 1.8% drop last month, exceeding economists’ expectations of a rise just 0.1%.

Despite some strength in the price of gold, the gold sector stood out as one of the market''s worst performances as traders cashed in on some of the sector''s recent gains. Some semiconductor stocks moved sharply lower, with Marvell Technology (MRVL: chart) being the most notable decliner, down 7.4% after it received a letter of informal inquiry from the SEC and a grand jury subpoena for documents related to its stock option grants and practices. Maxim Integrated Products (MXIM: chart), chip maker, fell 2.9% on receiving a subpoena, requesting documents related to its stock option grants and practices. Rambus (RMBS: chart) rose 6.7% on its announcement of a patent licensing agreement with Toshiba for memory controllers. Energy stocks also moved sharply lower, despite an increase in the price of oil. The Philadelphia Oil Service Index dropped 2.6%. Some networking, disk drive, and transportation stocks also showed significant weakness. In late morning trading, the Dow Jones industrial average fell 99.25, or 0.88%. The Standard & Poor''s 500 index lost 13.62, or 1.06%, and the Nasdaq composite index dropped 41.43, or 1.89%. Bonds fell sharply, exacerbating the drop in stocks. The yield on the 10-year Treasury note rose to 5.23% from 5.15% late Monday.


Factory orders rose 0.7% in May.
Wednesday morning, the Department of Commerce released its report on factory orders in the month of May. The report showed that orders rose much more than economists had been expecting after falling in the previous month. The Commerce Department said [new orders for manufactured goods rose 0.7 percent in May following a revised 2.0 percent decrease in April. Economists had expected orders to increase 0.1 percent compared to the 1.8 percent decrease originally reported for April. The increase in orders came as a 1.6 percent increase in orders for manufactured non-durable goods more than offset a 0.2 drop in orders for manufactured durable goods. The report also showed that shipments of manufactured goods rose 2.2 percent in May following a 0.1 percent decrease in April. At the same time, inventories of manufactured goods fell slightly following a 1.0 percent increase in April. As a result, the inventories-to-shipments ratio fell to 1.15 in May from 1.17 in April.


10:30 AM Indian benchmark index soars on favorable fund outflow reports.
The Sensex in India finished the day 257.42 points, or 2.4% higher, at 10,919.64. The turnover on BSE was $617 million or Rs 2,762 crore, higher than Tuesday’s Rs 2,058 crore. The market-breadth was positive, as 1,297 stocks advanced, 1,040 declined and 88 shares were unchanged.

Metal shares soared, led by firm metal prices on the London Metal Exchange. Hindustan Zinc surged 10% to Rs 617.55 on a huge volume of 1.5 million shares. Sterlite Industries advanced 3.5% to Rs 414, and Hindalco climbed 1.5% to Rs 179.65. Tata Steel advanced nearly 5%, to Rs 562.70. Tata Group intends to raise its stake in Tata Steel to 33.6% this fiscal year from 26.79%.

Cement shares were also in focus. Grasim jumped 5% to Rs 1,985, Gujarat Ambuja Cements advanced 3.3%, to Rs 102, ACC gained 3.4%, to Rs 816 and UltraTech Cement rose 1.6%, to Rs 745. In June 2006, cement dispatches advanced 8.2% to 51.95 lakh tonnes (5.2 million tones) as the traditional pick-up in construction activity before the monsoon boosted cement demand.

Hindustan Lever jumped nearly 4%, to Rs 241.50. The stock advanced on a huge volume of 2 million shares. Cigarette leader, ITC gained nearly 3.2% to Rs 184.70. Power utility Reliance Energy soared nearly 5%, to Rs 477. Tata Power gained 4%, to Rs 487.

Reliance Communications advanced 5%, to Rs 260 on reports that mobile phone operators have come to an agreement to share seven transmission towers in Delhi and two in Mumbai to reduce cost of setting up new towers by 50%. Bharti Tele-Ventures gained 2% to Rs 371. Maruti Udyog, largest auto maker, gained 4% to Rs 818 following reports that Suzuki Motor Corporation will build a new compact car in India for Nissan Motor Co., to be sold in Europe.

Engineering & construction large-cap L&T gained 3.5% to Rs 2,268. L&T said on Monday that it had secured an order worth Rs 329 crore (app $58 million) for high technology equipment. Bank shares were in high demand. HDFC Bank gained 3%, to Rs 812. IT stocks were also in focus on expectations of strong Q1 June 2006 results. Infosys gained 1.5% to Rs 3,190, and software giant TCS advanced 1.9% to Rs 1,849, and Satyam Computer climbed 0.8%, to Rs 733.70. TCS is now up close to 100% from its IPO price. Index large-cap Reliance Industries) gained 2.4% to Rs 1,099.30 continuing its recent sharp rise.


9:45AM The Dow and Nasdaq tumbled.
U.S. stock markets came under pressure in early trading, as news of a series of missile tests by North Korea inspired traders to lock in profits. North Korea launched seven missiles Wednesday, sending stocks around the globe down, with investors worried that the disagreement between North Korea and the United States could intensify. A large number of sectors suffered declines in the early going. The Nasdaq led the major averages lower with a decline of 1.2%. Technology stocks were among the most notable decliners, with the disk drive space falling by 1.8%, followed by the networking and software sectors, each falling by more than 1.4%.

Semiconductors posted significant weakness, dragged by Marvell Technology (MRVL: chart) which dropped 5.4% after it received a request from the U.S. SEC and federal prosecutors over its executive stock compensation plans. Home building stocks were also weak, with Hovnanian (HOV: chart) leading the group lower with a decline of 3.2%. Ryland (RYL: chart) and Beazer Homes (BZH: chart) also dropped more than 3%. Transportation stocks also fell as crude oil neared $74 per barrel. In the first hour of trading, the Dow Jones industrial average fell 61.71, or 0.55%. The Standard & Poor''''s 500 index lost 8.15, or 0.64%, and the Nasdaq composite index dropped 22.47, or 1.03%. Bonds fell along with stocks, with the yield on the 10-year Treasury note rising to 5.21% from 5.15% late Monday.


9:00AM Stock futures pointed to a higher opening.
U.S. stock futures indicated a weaker market opening, resuming trading after the Independence Day Holiday. The trading session is expected to be volatile with worries about North Korea weighing on market sentiment. Stocks dropped across Europe and Asia after North Korea launched at least seven missiles. General Motors (GM: chart) is also seen in the spotlight on news that Renault and Nissan CEO is set to meet his counterpart at GM later this month in Detroit. In economic news, the Commerce Department is due to release a report on factory orders in the month of May, with economists expecting orders to edge up 0.1% in May following a 1.8% drop in April. On the corporate front, Citigroup raised its rating on McGraw-Hill Cos. Inc. to ‘buy’. Jefferies & Co. lowered its rating on chip supplier Atheros Communications Inc. (ATHR: chart) to ‘hold’ and cut its price target to $20 from $30.S&P 500 futures fell 5.2 points, below fair value. Dow Jones industrial average futures slid 44 points and Nasdaq futures were down 8.50 points.

Wilson Bowden, (WLB: chart), home builder, reported that completions in the first half of the year declined 2.5% to 2,135, while the forward order book at the end of the period advanced 52% at 2,266 units. The company added that the average selling price per units climbed 6% to $382,000, reflecting a 3.1% increase in average unit size. Wilson Bowden also added that, as expected, margins remain under pressure because 50% of completions come from sites bought in the last two years, a period in which cost inflation has exceeded selling price gains. The company announced it continues to expect 2006 performance to be in line with expectations.