[R]11:30AM U.S. stock averages traded mixed on rate concerns.[/R]
U.S. stock market averages turned mixed, reflecting robust manufacturing data and weak housing report reignited concerns that the Fed Reserve may not cut interest rates in the near future. The Institute for Supply Management''s April manufacturing index came in at 54.7%, higher than the reading in March and above forecasts. In another report, the National Association of Realtors said pending sales of existing homes fell by 4.9% in March to their lowest point in four years.

Merger-and-acuisition deals attracted attention today. Susquehanna Bancshares Inc. (SUSQ: chart) agreed Tuesday to purchase Community Banks Inc. (CMTY: chart) in a cash-and-stock deal worth nearly $860 million. Under terms of the deal, Community shareholders will receive either $34 in cash or 1.48 shares of Susquehanna common stock for each share of Community stock they own. Community Banks surged 34%.

MAF Bancorp (MAFB: chart) surged 35% after National City Corp. said Tuesday it will buy the company for $56 per share, or $1.9 billion in an all-stock deal. The move is aimed to help National City to enter the Wisconsin market and expand its presence in Chicago. The price represents a 39% premium to MAF Bancorp''s Monday closing price of $40.15.

Among other stocks in focus today, Circuit City (CC: chart) fell 11% after the company withdrew its first-half 2008 outlook and said its Q4 loss from continuing operations will widen. Citigroup later downgraded the stock to hold. In late morning trading, the Dow rose 33.49, or 0.26%, to 13,096.40. The Standard & Poor''s 500 index fell 0.35, or 0.02% to 1,482.02, and the Nasdaq composite index was off 3.05, or 0.12%, to 2,522.04. Bond prices dropped after the manufacturing data, and the yield on the benchmark 10-year Treasury note rose to 4.65%, up from 4.62% late Monday.


[R]9:45AM U.S. markets opened higher on deal news.[/R]
U.S. stocks opened in the positive, helped by deal news. Microsoft (MSFT: chart) is reportedly interested in buying Internet advertising firm 24/7 Real Media (TFSM: chart) which soared 19%. Much stronger-than-expected data on manufacturing activity also contributed to the early gains, easing fears about the U.S. economic growth. The Institute for Supply Management manufacturing index hit a 1-year high of 54.7% in April, topping forecasts of an increase by 51%.

Among earnings-related gainers, Manitowoc (MTW: chart) gained 5.3% in early trading as the provider of lifting equipment reported late Monday reported QA1 net earnings of $64.1 million, or $1.01 a share, up from $29.7 million, or 48 cents a share a year ago, beating expectations of earnings of 87 cents a share on revenue of $809 million. Manitowoc also lifted its 2007 outlook. The company named Glen Tellock as a new CEO. On the side of the losers, Circuit City (CC: chart) fell 10.6% after the company said it expects Q1 loss and withdrew its forecast for the first half of the year. Procter & Gamble (PG: chart) weighed on the Dow with a decline of 2% amid a disappointing forecast.

Shares of apparel-maker Liz Claiborne Inc. (LIZ: chart) tumbled 20% after quarterly earnings missed estimates. The Dow Jones industrial average was up 34.54 points, or 0.26%, at 13,097.45. The Standard & Poor''s 500 was up 1.65 points, or 0.11%, at 1,484.02. The Nasdaq Composite Index was up 1.75 points, or 0.07%, at 2,526.84.


[R]9:00AM U.S. stock futures pointed slightly higher ahead of manufacturing data.[/R]
U.S. stock futures indicated a moderately higher opening on Tuesday ahead of a reading on the nation’s manufacturing sector, which is expected to give further signs of the rate of economic slowdown. Investors were also awaiting the release of another batch of quarterly earnings, eager to learn whether the robust growth in corporate profits is likely to continue. The ISM’s index of U.S. manufacturing is due out after the opening bell, with economists predicting the April index will come in at 51.0. Reports on pending sales of existing homes in March and automakers’ sales figures in the month of April are also due out today.

Among pre-market headlights, Circuit City Stores (CC: chart) slipped 8% in the pre-open after it withdrew its fiscal first-half 2008 outlook and said its Q4 loss from continuing operations will widen. Procter & Gamble Co (PG: chart) reported a 14% increase in its Q3 profit, with earnings coming in line with expectations while sales, which rose 8%, came in better than expected. The company also lifted the lower end of its full-year forecast.

Automakers are scheduled to report weak U.S. sales for April. Ford Motor Co. (F: chart) expected to posted 22% sales drop, followed by General Motors (GM: chart) with 11% decline on sales, and Chrysler (DCX: chart) with 10% decrease. Dow futures expiring in June rose 14, or 0.11%, to 13,130. The blue chip index has hit 37 record closes since the beginning of October, its latest coming on Friday. Standard & Poor''''s 500 index futures rose 3.30, or 0.22%, Tuesday to 1,491.70. Nasdaq 100 index futures rose 3.00, or 0.16%, to 1,882.25.


[R]8:45AM The FTSE 100 slips in light trading, Pub Taverns leads decliners.[/R]
The UK benchmark index was lower on Tuesday. The FTSE 100 was down 30.5 points at 6,418.7 by late morning.

Advancers

There were very few advancers in the market. Real estate stocks gained after well-received figures from shopping centre operator Liberty International, up 2.7 %. First-quarter profit was boosted by rising net rental income cmpared with a year earlier. Net asset value per share, a key gauge for property companies, also rose 4% during the quarter.

Other gainers included Hammerson which rose 1.1%, while Slough Estates, which was supported by continued bid speculation, firmed 1.5%.

Decliners

Punch Taverns leads the decliners, down 4.1%, after investors took profits in the pub group. Punch reported a 12% rise in profits and said second-half trading was in line with expectations

In the mid-caps, Aberdeen Asset Management lost 2.6% despite the fund manager announcing a sharp rise in interim profits. Technology commercialisation firm Angle announced it expects pre-tax losses to be 4.4 million pounds in the second half and 9.3 million pounds in the full year. Shares of Angle slumped almost 21%.