[R]9:45AM Market opened little changed, following IBM and GE financial reports.[/R]
U.S. stocks opened near the flat line after quarterly profits from IBM (IBM: chart) and a conservative outlook from General Electric (GE: chart) raised worries about corporate profits. The two Dow components fell 4.7% and 1.9%, respectively. IBM losses added to the recent weakness of technology stocks, with the Nasdaq down over 2% for the week, dragged down by disappointing outlooks from Intel Corp. (INTC: chart) and Apple (APPL: chart). In addition, Motorola Inc. (MOT: chart), the world's second-largest maker of cell phones, said Friday its Q4 profits dropped 48% despite record sales. Net profit was $624 million, or 25 cents per share, down from $1.2 billion, or 46 cents per share a year earlier. Revenue rose 17% to $11.8 billion, up from $10 billion a year ago and slightly above the $11.7 billion estimate. Shares of the mobile phone maker added 1.2% in early trading. Shares of energy companies advanced, with Exxon Mobil Corp. (XOM: chart), up 0.6%, and ConocoPhillips (COP: chart), up 0.8%, as crude oil rose to $50.74 a barrel. In the first hour of trading, the Dow Jones industrial average was down 6.01, or 0.05%, at 12,561.92. The Standard & Poor's 500 index was up 1.97, or 0.14%, at 1,428.34, and the Nasdaq was down 0.12, or less than 0.01%, at 2,443.09.


[R]9:30AM NY-2:30PM London The FTSE was slightly lower on Friday in flat trade.[/R]
The FTSE 100 was off 9 points, or 0.20%, at 6,198 in late afternoon in London.

Advancers

Sweetener group Tate & Lyle, up 1.67%, remains a top advancer on reports that a private equity group is considering tabling a bid for the group.

Anglo-Dutch steel manufacturer Corus is 1.30% higher supported by reports that Tata Steel of India could be ready to improve its offer for the group. Tata is believed to have dismissed the news.

Intercontinental Hotels is also attracting support, advancing 3.27%, on talk of private equity and buy-out interest.

UBS turned buyer on Land Securities, up 0.99%, upgrading its stance to buy from neutral to take account of its conversion to REIT status.

Online auctioneer QXL Ricardo, 11.89% higher, is strong again after yesterday''s impressive third quarter numbers.

Decliners

Mice Group plunged 25.41%, blaming project delays in the US, cancellations, bad debt and foreign exchange losses for a warning that profits for the year will be significantly reduced.

Retail software group NSB Retail dipped 10.85%, warning that annual profits will come in below market expectations owing to a delay in the signing of some customer contracts.

Miners were down once again, reacting to a decline in copper prices. The worst affected were Kazakhmys shedding 0.10% and Vedanta, 0.90% lower.


[R]9:00AM Market futures moved lower, as IBM Q4 results disappointed.[/R]
U.S. stock futures declined as investor disappointment over IBM''s Q4 results offset solid reports from Citigroup and General Electric. Shares of Dow component IBM (IBM: chart) dropped 5% in pre-open trading, as investors were disappointed with quarterly results. Although the company''s profit rose 11% on 7.5% revenue growth, some investors had looked for more. The company projected 10% earnings per share growth in 2007 which is at the lower end of its target.

Another blue-chip stock, Citigroup Inc. (C: chart), the nation''s largest bank, reported Q4 profit decline to $5.13 billion, or $1.03 a share, down from $6.93 billion, or $1.37 a share a year earlier. Revenue hit a record $23.83 billion, up from $20.78 billion in 2005. The bank’s quarterly results beat Wall Street expectations of $1.00 a share on revenue of $22.45 billion. The latest quarter''s results included $415 million in charges. The financial services giant also raised its dividend by 10% to 54 cents a share.

Again on the Dow, General Electric Co. (GE: chart), diversified industrial products and media conglomerate, said Q4 profit more than doubled, boosted by strong revenue growth in its infrastructure, health care and financial services businesses. Net income totaled $6.58 billion, or 64 cents per share, up from $3.16 billion, or 30 cents per share, a year ago when the company took a $2.7 billion charge. GE is also restating financial results for the years 2001 through 2005 and the first three quarters of 2006 to adjust accounting for interest rate swaps in part of its financial services commercial paper program. Looking ahead, GE said it expects earnings per share from continuing operations to rise between 10% and 12% for all of 2007 and between 8% and 13% in the current Q1. the stock dropped 2% in pre-open.

Elsewhere, Coldwater Creek''s shares (SWTR: chart) tumbled 23% after the women''s apparel company slashed its Q4 earnings outlook. Shares of fiber-optic components maker JDS Uniphase (JDSU: chart) surged 11% in pre-open trading after the company lifted its Q2 forecast. In corporate news, Morgan Stanley''s (MS: chart) real-estate arm agreed to buy upscale hotel operator CNL Hotels & Resorts for $6.6 billion. S&P 500 futures slipped 0.60 of a point to 1,432.60 and Nasdaq 100 futures were down 3.25 points at 1,802.75. Dow industrial futures slipped 18 points to 12,585.


[R]8:00AM IBM reported 11% profit rise in Q4, due to cost cuts and software acquisitions.[/R]
International Business Machines Corp. (IBM: chart) reported late Thursday an 11% profit increase in Q4 to $3.54 billion, or $2.31 per share, on revenue of $26.3 billion, well above the $2.19 per share and $25.7 billion in revenue expected by analysts. Company’s revenue rose 7% in the fourth quarter, marking the fastest growth in 2006. The quarterly financial results surpassed last-year levels, with profit of $3.19 billion, or $1.99 per share, and revenue of $24.4 billion. However, profit in that comparison quarter was dragged down about $200 million after taxes, or 12 cents per share.