10:30AM New York – U.S. stocks see-sawed in the morning as investors still digest possibilities of more losses and write downs at banks.

U.S. stocks edge cautiously higher in the morning trading after a steep loss in Thursday’s trading. The 3% decline in major indexes roiled financial markets in Asia. India and China plunged 4.3% and 5.3% respectively and Japan and Hong Kong fell 2% and 1.8% respectively.

KB Home (KBH: chart) fell 71 cents to $17.44 after it reported revenue decline of 55% and net loss increased more than 60% to $255 million. Yesterday, Lennar reported revenue fall of 61% but reported a narrower loss.

International Gaming & Technology (IGT: chart) dropped $1.87 to $25.43 as other casino related stocks declined. MGM Mirage (MGM: chart) fell 99 cents to $35.61, Las Vegas Sands (LVS: chart) dropped $1.43 and Wynn Resorts (WYNN: chart) declined $2.51 to $80.99.

Steelcase, the office furniture maker (SCS: chart) declined $1.37 to $10.12 after it reported first quarter revenue rise of 0.9% and net income decline of 34%.

Personal Income in May Rises

Personal income and personal consumption expenditures increased in May after tax rebates boosted personal income. The income in May rose 1.9% and disposable income rose 5.7% and real disposable income rose 5.3% compared to an increase of 0.1% in April. Personal consumption expenditure rose 0.8% in the month and real expenditure rose 0.4% compared to 0.2% in April.

The real personal disposable income increased after the federal government issued tax rebates $48.1 billion in May and $1.9 billion in April.

Private wage and salary disbursements increased $15.9 billion and government wages and salary payment rose $3.7 billion in the month. In April private disbursements had declined $9.6 billion and government disbursements had increased $4 billion.

Asian Markets Review

In Tokyo Nikkei 225 Index closed lower 277.96 or 2.01% to 13,544.36, in Hong Kong Hang Seng index decreased 413.32 or 1.84% closed to 22,042.35. In Australia ASX 200 index lower 70.00 or 1.32% to close 5,237.00. In Malaysia KL Composite index decreased 13.35 or 1.11% closed to 1,190.54.

In South Korea Kospi Index decreased 33.21 or 1.93% to close at 1,684.45, in Thailand SET index closed higher 1.34 or 0.17% to 775.73 and Indonesia JSE Index edged decreased 18.78 or 0.80% to 2,332.11. Sensex index in India decreased 619.60 or 4.30% to 13,802.22.

Earnings Review

AZZ incorporated, a manufacturer of electrical products and a provider of galvanizing services, reported first quarter revenues increased 33% to $100 million from $75.4 million a year ago. Net income in the quarter increased 59.40% to $10.1 million or 82 cents per diluted share compared to net income of $4.1 million or 34 cents per share, a year ago.

AZZ incorporated (AZZ: chart) in the last one year traded as high as $41.58 in July 2007 and as low as $24.18 in September 2007. Based on the yesterday’s closing price the company has a market cap of $391.64 million. AZZ stock surged $7.33 to $39.60.

KB Home, one of America’s largest homebuilders reported second quarter revenues declined 54.77% to $639.1 million from $1.41 billion a year ago. Net loss in the quarter was $255.9 million or $3.30 per diluted share compared to net loss of $148.7 million or $1.93 per share, a year ago.

KB Home (KBH: chart) in the last one year traded as high as $40.71 in June 2007 and as low as $15.76 in January 2008. Based on the yesterday’s closing price the company has a market cap of $1.62 billion.

Shaw Communications Inc, the second largest Canadian cable and satellite TV company reported third quarter revenues increased 11.35% to $792 million from $702 million a year ago. Net income in the quarter rose 39% to $128 million or 30 cents per diluted share compared to net income of $92 million or 21 cents per share, a year ago.

Shaw Communications Inc (SJR: chart) in the last one year traded as high as $28.79 in November 2007 and as low as $16.18 in March 2008. Based on the yesterday’s closing price the company has a market cap of $8.21 billion. Shaw stock (SJR: chart) rose 27 cents to $19.25.

Steelcase Inc, manufacturer of office furniture and complementary products and services reported first quarter revenues increased 0.9% to $815.7 million from $808.5 million a year ago. Net income in the quarter declined 34.22% to $22.1 million or 16 cents per diluted share compared to net income of $33.6 million or 23 cents per share, a year ago.