[R]12:00PM New York – Financial stocks weakness dragged markets U.S. market averages lower.[/R]

U.S. stocks rebounded in the morning but quickly lost ground after earnings release from IBM, General Electric, and Schlumberger.

Conference Board index of leading indicators fell 0.2% in December, third monthly decline indicating that economy may be heading for a slow-down. Investors were also disappointed after President Bush plan of $145 billion to stimulate economy. Investors are hoping a larger package of monetary and fiscal stimulus.

General Electric (GE: chart) reported fourth quarter earnings from continuing operations of $6.82 billion or 68 cents per share on revenue rise of 18%. Earnings in the quarter jumped 15% and earnings per share increased 17% from a year ago.

GE stock added $1.19 or 3.5% to $34.37 at mid-day trading.

For the full year revenue rose 14% organic revenue in 2007 increased 9%. GE reported return on total capital rose 18.9% in 2007.

General Electric reaffirmed its earnings guidance for the year 2008 of at least $2.42 per share an increase of 10% from 2007.

Fourth-quarter revenue reached $6.25 billion versus $5.93 billion in the third quarter of 2007, and $5.35 billion in the fourth quarter of 2006.

Net income in the fourth quarter, excluding a $17 million after-tax gain on the sale of certain rigs in the quarter, increased 21% to $1.37 billion from a year ago or 1% from the third quarter.

Diluted earnings-per-share, excluding this gain, were $1.11 versus $1.09 in the previous quarter, and $0.92 in the fourth quarter of 2006.

In the fourth quarter strong sequential revenue growth contributed significantly to overall performance, but a less favorable Oilfield Services revenue mix, lower pricing in U.S. land operations, and a number of seasonal weather effects led to less than satisfactory margins.

The company said in the press release that high utilization rates of rigs will affect the land and offshore drilling in the U.S. however, growth in land activity in the international markets will be robust.

Spring (S: chart) fell $3.12 or 27% to $8.44 after it reported that it lost 683,000 subscribers on contract and 202,000 pre-paid customers in the fourth quarter. The company plans to eliminate 4,000 jobs in the first half of 2008 and close 8% of its stores.

[R]10:00AM New York, 7:30PM Mumbai - Sensex plunged, India''s annual economic growth may be lowered.[/R]

Stocks in Mumbai trading fell for the fifth day in a row on a decline in large companies including Reliance Industries, DLF, and ICICI Bank.

The 30-share BSE benchmark index declined 3.5% or 687.12 to 19,013.70. The broader CNX S&P Nifty lost 3.5% or 207.90 to 5705.30.

Of the BSE shares, 2,505 shares fell, 362 shares surged, and 23 remained unchanged. Among the 30-benchmark index shares, 25 stocks slipped and the rest climbed.

Trading turnover on the BSE was recorded at 8,753 crore rupees and turnover on the National Stock Exchange stood at.19,884 crore rupees.

Reliance Industries was the most active stock with a turnover of 493.87 crore rupees on the BSE. Housing Development Finance Corporation, Reliance Natural Resources, Reliance Energy and ICICI Bank were other companies on the most active list.

Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, warned on Friday that India''s annual economic growth rate could be lowered by 0.5% if global economic growth slows.