[R]4:10PM Averages close higher after steep losses during the week.[/R]

-Dow closed up 15.37 points, Nasdaq up 13.57 and S&P 500 up 5.19.
-Yield on 10-year bond closed at 5.06% and 30-year bond at 5.15%.
-Crude oil 95 cents to $68.50 per barrel.
-Gold closed down $23.40 to $657.50 per ounce.
-Silver and copper closed 16 cents and 24 cents lower.

-European markets closed up with small gains led by a gain 0f 0.7% in France.
-Russia closed 2.7% lower on Friday and lost 19% in the last seven trading days.
-Latin American markets closed lower led by Mexico and Brazil closing 0.6% lower.
-Asian markets closed mixed on Friday but for the week lost ground across the board.
-India lost 13% since May 10th or declined 1,673 points from the record level at 12,612.

Markets around the world were unsettled as indexes in the American market slipped. Fall in Dow, Nasdaq and S&P 500 of between 4.5% and 6% led European markets with similar corrections and emerging markets with sell-offs of more than 5% and 18%. Fears of rising interest rates and commodity led higher inflation rattled nerves of investors first in New York and then in Europe and Asia. Russia lost 19%, India declined 13% and Latin American markets fell between 5% and 11%. For the day, Nasdaq led the rise in averages in the final hour of trading.

Metals markets finally began correcting after rising to 25-year highs. Gold has lost 10% in the last six trading days and silver in the period lost 17%, copper lost 12% during this period. Copper fell 6% in London trading as prices of Aluminum, zinc and precious metals came under pressure. Even after this correction, copper price is up close to 80% for the year.

British Airways, Plc. (BAB: chart) shares closed up 9.3% after the company reported Q4 net profit jumped to £83 million up from £6 million a year ago. Pre-tax profit for the quarter of £91 million was ahead of analyst expectations of £51 million. Revenue rose 13% to £2.1 billion on higher-margin premium traffic and ticket surcharges. Net Debt at £1.6 billion fell by £1.3 billion during the year, a £5 billion reduction since its peak in December 2001. Operating cash flow increased £334 million to £1.3 billion. Operating profit for the year was £705 million, up from £556 million a year ago, with £93 million for the quarter, up from £46 million a year ago. The operating margin was 8.3% for the year and 4.4% for the quarter.

The company’s annual fuel bill rose by 44.7% to £1.6 billion. The company’s full-year total revenue is expected to improve by 5% to 6%, up from previous forecasts of 4% to 5% due to the latest fuel surcharges and increases in seat factor.

[R]2:20PM Benihana, Japanese restaurant chain dropped 25%.[/R]
Benihana, Inc. (BNHN: chart), operator of teppanyaki-style Japanese restaurants, saw its shares decline after it cut its earnings outlook Thursday after the close. The company now expects Q4 earnings of 31 cents to 33 cents a share. The previous target was 34 cents to 36 cents a share. Analysts, on average, had been expecting forecasted earnings of 37 cents. The stock declined 24% in early afternoon trading.

A loss in operating profits arose from restaurants that were temporarily closed for renovations for 25 weeks. The company also said its accelerated renovation and revitalization program decision had impacted with more immediate and significant charges than previously planned. Benihana said that as its new design implementations get underway in 2007, it anticipates a loss of 175 to 200 lost restaurant operating weeks and charges plus ongoing expenditures for the locations under construction at $1.5 million to $1.8 million. The company said capital expenditures of the program will cost approximately $2 million per unit with overall earnings affected by 33 cents to 39 cents per share for 2007.

Hibbett Sporting Goods, Inc. (HIBB: chart) reported Q1 diluted earnings of 35 cents a share up from 31 cents a year ago with revenues of $126.9 million up from $114.8 million in the year-earlier period. On average, analysts had expected earnings of 35 cents and revenues of $131 million. Same-store sales dropped 0.07% for the quarter. Net sales for Q1 increased 10.5% to $126.9 million, up from $114.8 million in the year-earlier period. Net income for Q1 increased 7.7% to $11.5 million compared with $10.7 million a year ago.

The company opened a net of 11 new stores during the first quarter. It now has 560 stores in 22 states. The company repurchased 0.5 million shares of common stock in the first quarter for a total expenditure of $15 million. Since August of 2004, the company has repurchased 3.7 million shares for a total expenditure of $81 million with $19 million left still for authorized future stock purchases.

In Q2, the company expects diluted earnings of approximately 14 cents to 16 cents a share with same-store sales increasing 1% to 2%. Full-year earnings are expected at approximately $1.08 to $1.12 per diluted share. Same-store sales are expected to increase 2% to 3%.

Rackable Systems, Inc. (RACK: chart), a provider of high-density computer servers and high-capacity storage systems, filed its 10Q SEC report on Monday showing 23 cents diluted earnings per share, vs. a loss of 84 cents a share a year ago. The company’s stock was down 8.41% in the afternoon.


[R]12:30PM European markets closed mostly higher.[/R]
European markets closed mostly higher. Inflation worries which have hit markets in the last two weeks were offset by gains for BNP Paribas, British Airways and a lifted bid for steel maker Arcelor. BNP Paribas climbed 3.5% on 17% first-quarter earnings rise. British Airways was the U.K. main index''s biggest riser, adding 9.1% after announcing that Q4 profit rose to 83 million from $6 billion a year ago. Arcelor climbed 9% after Mittal raised its bud 34% to nearly $33 billion. The German DAX 30 added 0.1%, the French CAC 40 rose 0.7%, while London’s FTSE 100 fell 0.3%.

Oil hovered round $68 on concerns about rising inflation and slower economic growth. Light crude fell $1.25 to $68.10 a barrel. London Brent crude shed $1.14 to $68.53. European gold continued to decline. In London the precious metal fell to $653.60 an ounce from $690.70. In Zurich gold traded at $653.50, down from $690.20. In London silver fell to $12.70 from $12.90. The dollar advanced in European trading. The euro traded at $1.2718, down from $1.2829. The dollar bought 111.95 yen, up from 110.89. The British pound stood at $$1.8723, up from $1.8908.


[R]11:30AM Stock markets turned to lackluster trading.[/R]
The U.S. stock markets lost direction in late morning and turned to lackluster trading amid a lack of economic news and a limited amount of significant corporate news. The major averages were mixed, with the Dow and the Nasdaq posting modest losses while the S&P 500 was above the unchanged line. On Friday significant strength was shown by the semiconductor sector. The Philadelphia Semiconductor Index rose 1.9% after ending Thursday''s trading at a six-month closing low. Advanced Micro Devices (AMD: chart) was one of the sector''s best performances, rising 9.7% on news that Dell (DELL: chart) plans to offer AMD chips in its multi-processor servers. Intel (INTC: chart) has moved lower on the heels of the news. Shares of Marvell Technology (MRVL: chart) climbed 7.6% after the chip maker reported strong Q1 earnings growth.

Airline stocks posted some strength in morning trading, reflecting a considerable decrease in the price of oil, down to $68.15 a barrel. British Airways (BAB: chart) was the most notable gainer, up 9%. The Amex Airline Index advanced 1%. At the same time, the price decrease contributed to significant weakness among energy stocks, with the Philadelphia Oil Service Index falling 1.2% while the Amex Oil Index is down 1%. Weakness in metals prices sent gold and other metal stocks lower. The price of gold steeply declined, with gold for June delivery currently down $26.40 at $654.50 an ounce. Among individual stocks, SafeNet (SFNT: chart) posted a standout loss, with the information security company down 20.3%. The stock dropped after the company received a federal subpoena related to its granting of stocks options.

In corporate news, Mittal Steel (MT: chart) raised its hostile bid for rival steelmaker Arcelor SA by 34% to $32.9 billion in cash and stock. Should the takeover take place, the two joined companies would have control of 10% of the world''s steel production. Arcelor rejected an earlier offer of $27 billion, but said it would consider the new bid.