[R]11:30AM Market rallied on deal news. Dow crossed 13,600.[/R]
Another flurry of deal news fueled U.S. market rally, sending the Dow Jones to a new record high of over 13,600. The blue-chip average was boosted by gains for Caterpillar (CAT: chart), up 2.1%, Home Depot (HD: chart), Hewlett-Packard (HPQ: chart) and Disney (DIS: chart), each rising above 1%. The metals sector was in the spotlight amid deal speculations after Alcan (AL: chart) rejected Alcoa's (AA: chart) $27 billion hostile bid. Alcoa rose 4.5%, while Alcan shares added 4.2%.

Better-than-expected quarterly earnings also contributed to the upside move. Medtronic (MDT: chart) climbed 5.2%, while Target Corp. (TGT: chart) advanced 3.5%. Metals mining stocks werethe leading gainers, followed by oil sevice stocks and broker/dealers. Among notable movers, Freeport-McMoRan Copper & Gold (FCX: chart) rose 4.2%. Semiconductors and software shares posted losses. Energy prices wouldn't decline on data showing that U.S. gasoline inventories rose by 1.5 million barrels last week, nearly twice what the market expected.

In late morning trading, the Dow Jones industrial average rose as high as 13,609.76, then edged back slightly to 13,591.72, up 51.77, or 0.38%. The Standard & Poor's 500 index advanced 6.17, or 0.40%, to 1,530.29 . The Nasdaq composite index gained 8.34, or 0.32%, to 2,596.36. Bonds fell slightly, with the yield on the benchmark 10-year Treasury note rising to 4.84% from 4.83% late Tuesday.


[R]9:45AM U.S market averages opened up, helped by deal news and strong retail earnings.[/R]

Wall Street opened higher amid deal speculations in the metals and media sectors. Alcan (AL: chart) rose 3.4% after it rejected the $27 billion hostile offer from Dow-component Alcoa. Alcoa (AA: chart) gained 2.9%. BHP Billiton (BHP: chart) added 2.4% on speculations that it is in talks with Alcan. Further in M&A action, Russia''s Norilsk Nickel made a new $6.25 billion offer for Canadian miner LionOre, outbidding Xstrata''s offer by 10%. In the media sector, the Bancroft family, which controls Dow Jones (DJ)) are reportedly due to discuss the News Corp. (NWS: chart) takeover bid at a meeting.

Retailers posted gains on strong earnings. Target (TGT: chart) advanced 3.3% after the retailer posted better-than-expected Q1 earnings of 75 cents a share and revenue of $14.04 billion which came in below analyst estimates. Medtronic (MDT: chart) rose 5.2% after it said Q4 earnings and revenue beat expectations. The Medical device maker said quarterly profit rose 10% to 70 cents per share on 7% revenue increase, despite sluggish sales of implantable heart devices.

On the side of the losers, Analog Devices (ADI: chart) dropped 8.6% after reporting a 14% profit decline and projecting current quarter earnings below market estimates. The Dow Jones was up 47.79 points, or 0.35%, at 13,587.74. The Standard & Poor''s 500 was up 6.05 points, or 0.40%, at 1,530.17. The Nasdaq Composite was up 8.64 points, or 0.33%, at 2,596.66.


[R]9:30AM China rallies Wednesday, Japan, South Korea advance, HK declines.[/R]

Asian markets mostly advanced on Wednesday. Chinese Shanghai Composite index ended at 4,173.70, 1.5% higher. Among the advancers in Shanghai were China Vanke, the largest property developer by market value in the country, surged 4.9%, while Shanghai Lujiazui Finance & Trade Zone Development soared 4.6%. Financial firms rose on expectations of strong earnings. The Bank of China ended up 1.2% and Citic Securities gained 1.3%.

Chinese Shanghai Composite index ended at 4,173.70, 1.5% higher. Among the advancers in Shanghai were China Vanke, the largest property developer by market value in the country, surged 4.9%, while Shanghai Lujiazui Finance & Trade Zone Development soared 4.6%. Financial firms rose on expectations of strong earnings. The Bank of China ended up 1.2% and Citic Securities gained 1.3%.

In Japan, the Nikkei 225 added 0.1% to end at 17,705.12. Banks rose again after Tuesday gains tracking a strong earnings forecast from Sumitomo Mitsui Financial Group, with Mitsubishi UFJ Financial Group increasing 4.4% and Sumitomo Mitsui 4.5% higher after 5.7% jump on Tuesday. Among exporters, Toyota added 1.2% on expectations of a recent weakness in the yen which would improve its earnings.

Hong Kong Hang Seng index closed down 0.2% at 20,798.97. Other indices finished higher. Australian S&P/ASX 200 closed 0.3% higher at 6,355.10, Seoul Kospi edged up 0.2% to 1,646.59 and Singapore Straits Times index gained 0.5% to 3,559.01.


[R]9:00AM Stock futures pointed to a higher opening, supported by deal speculations.[/R]

U.S. stock market futures moved higher on Wednesday after, boosted by speculations that Canada''s Alcan may involve rival aluminum producer Alcoa into a bidding war. Alcan is reportedly in talks with global mining concern BHP Billiton after rejecting an unsolicited takeover bid from Alcoa on Tuesday and said it is in discussions with third parties. Alcoa (AA: chart) gained 2.7% before the bell, while U.S.-listed shares of Alcan (AL: chart) were up 3.7%. In other deal news, Payless ShoeSource Inc. (PSS: chart) said it had agreed to acquire Stride-Rite Corp. (SRR: chart) for $800 million.

On the earnings news front, Target Corp. (TGT: chart) rose 3.7% before the bell after the discount retailer reported better-than-expected earnings. Medtronic (MDT: chart) rose 2.6% after the company posted quarterly earnings and revenue above analyst estimates. Analog Devices (ADI: chart) reported a 14% profit decline and projected current quarter earnings would come below market estimates. Abercombie & Fitch (ANF: chart) and Limited Brands (LTD: chart) are also due to report quarterly results. S&P 500 futures were up 6 points. Dow Jones industrial average futures rose 51 points, and Nasdaq 100 futures gained 6 points.


[R]8:15AM Crescent Real Estate Equities agreed to be acquired by a unit of Morgan Stanley for about $6.5 billion including debt.[/R]