[R]9:45AM U.S. markets opened lower on warnings of weaker retail sales in April.[/R]
Wall Street opened in the negative despite strong retail sales in March. The negative sentiment was generated by warnings of lackluster sales in the month of April. Wal-Mart (WMT: chart) fell 0.7% following a stronger-than-expected results but a tepid outlook for April. Pier 1 Imports (PIR: chart) lost 1% after reporting a decline in Q1 same-store sales and a larger year-over-year-quarterly loss. The retailer said that Q4 loss widened to 67 cents a share, from 11 cents a share. Among other retailers releasing monthly sales, Costco Wholesale Corp. (COST: chart) posted 6% rise in comparable-store sales, topping estimates of 4.7% increase. Total sales rose 11% to $5.94 billion. The stock gained 1%. American Eagle Outfitters (AEO: chart) rose 1.1% after the retailer said same-store sales jumped 20% in March, well ahead of the 11.1% expected by analysts. Abercrombie & Fitch (ANF: chart) added 2.3% after posting 7% growth in March same-store sales, while Pacific Sunwear (PSUN: chart) surged 7% as its March same-store sales rose 14%.

Technology stocks posted weakness, dragged by Research in Motion (RIMM: chart) which fell 9.2% after the company said sales jumped 66% during the quarter but released disappointing Q1 forecast. The strong sales were contributed to strong demand for the company''s BlackBerry devices. The company also said that SEC started a formal investigation into the company''s stock option granting practices. Financial stocks moved to the upside, helped by subprime mortgage lender NovaStar Financial (NFI: chart). The stock climbed 7% after it said it is considering new strategic alternatives and is open to buyout offers. Similarly, MedImmune Inc. (MEDI: chart) surged 12% after it said it''s considering alternatives. In the first hour of trading, the Dow Jones industrial average fell 28.93, or 0.23%, to 12,455.69. The Standard & Poor''s 500 index slipped 1.57, or 0.11%, to 1,437.30, and the Nasdaq composite index fell 3.56, or 0.14%, to 2,455.75. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.72% from 4.74% late Wednesday.


[R]9:30AM FTSE 100 declines in mid-day trade on lack of fresh bid developments.[/R]
The UK market was lower in mid-day trading. The FTSE 100 fell 0.4 % to 6,387.4, a decline of 25 points.

Advancers

SABMiller rose 1.5% on news of strong lager volume growth. The group posted full year trading in line with expectations, but added that lager volumes grew 23% during the period, including organic growth of some 10%, which pleased the market.

Another strong performer was Vodafone, up 0.8%, after analysts at Deutsche Bank raised their rating on the stock to buy from hold.

Mid-cap JJB Sports gained 2.2% after its annual profit missed forecasts, but not by as much as some had feared in the run-up to the numbers.

Decliners

Scottish & Newcastle declined 3.4% after SABMiller seemed to reject speculation that it could bid for the brewer of John Smith bitter and Newcastle Brown Ale. J Sainsbury continued to fall, down a further 1% after CVC abandoned offer for the supermarket chain.

Hammerson, down 2.1% and also linked with possible bid interest from private equity, was hit by a broker downgrade. Lehman Brothers cut its rating on the stock to equal weight from overweight and reduced its price target

Companies exposed to the US suffered losses. Man Group, the world’s largest listed hedge fund, was 0.9% weaker. Wolseley, the plumbing goods supplier highly active in America, fell 0.8% to. Experian, the credit quality data provider, was 1.4% lower.


[R]9:00AM U.S. stock futures declined. Research in Motion weighed.[/R]
U.S. stock futures turned lower on Thursday, as investors digested warnings of weak retail sales and data showing higher-than-expected rise in jobless claims. First-time filings for state unemployment benefits rose 19,000 to 342,000 last week, reaching the highest level in two months. In another economic report, the Labor Department said U.S. import prices rose 1.7% in March, the biggest gain in 10 months, and above the average economist estimate of a 0.6% increase. Research In Motion (RIMM: chart) also weighed on sentiment after it reported lower-than-anticipated quarterly results and gave a disappointing profit outlook. The stock dropped 6.8% in the pre-open. Further on the earnings news front, Genentech (DNA: chart) said Q1 profit surged 68%.

Many companies reporting same-store sales figures before the opening bell exceeded expectations because of an earlier Easter holiday this year. At the same time, there were warnings that sales will be light during April. Wal-Mart (WMT: chart) said Thursday its March same-store sales rose 4%, exceeding expectations of 1.6% increase. Total sales for the five-week period rose 11.7% to $34.26 billion. The company expects April same-store sales in the U.S. to be flat to down 2%, due to the earlier Easter holiday. Sales for the combined March/April reporting period are estimated to be between 1% and 2%.

J.C. Penney Co. (JCP: chart) reported 10.6% increase in March same-store sales, higher than an earlier forecast for a high-single digit increase and a 1% decrease last year. The strong results were contributed by strength in apparel categories, benefiting from an earlier Easter. Analysts had expected its same-store sales to rise 7.5%. Total company sales rose 10.7% to $1.71 billion. S&P 500 futures lost 2.90 points at 1,445.70 and Nasdaq 100 futures dropped 5.00 points at 1,807.75. Dow industrial futures fell 19 points at 12,535.


[R]8:45AM Asian stocks declined on Thursday on weakness in export-related stocks.[/R]
Asian markets ended mostly lower on Thursday. Japanese Nikkei 225 Average closed 0.7% lower at 17,540.42. Export-related stocks were hurt by the FOMC possible future hikes. Investor reaction led to profit-taking in large-caps, including Sony and Advantest. Sony shed 1.2%, Advantest sank 1.6%, Canon slid 2.1% and Toshiba slipped 0.6%.

The Hong Kong Hang Seng Index lost 0.3% to 20,380.21. Declines in China Mobile and Sinopec pushed the benchmark index lower after five straight days of gains. China Mobile fell 1% after rising 2.5% over the past five sessions. Sinopec fell 2% after gaining 12% over the last six trading days.

South Korean Kospi Index rose 0.8% to 1,525.61. The market closed at a record high, supported by strong gains by shipbuilders and KT&G, surging 3.8% on hopes of a higher share valuation after the company planned share buyback. Among shipbuilders, Hyundai Heavy Industries soared 3.7% and Samsung Heavy Industries rose 1.9%.