[R]2:30PM NY, U.S. Market Movers[/R]
Stock market indexes fell sharply in the mid-afternoon on comments from Fed officials. MasterCard’s profit fails to impress investors as much as cautious margin outlook for 2007. The stock falls12%.

AptarGroup Inc. (ATR: chart) shares gained 7.4% after the maker of pump dispensers for fragrances and personal care products said that its fourth-quarter net profit increased to $27.2 million, or 77 cents per share, compared with $23.7 million, or 66 cents per share, in the year-ago period. Revenue climbed to $422.4 million versus $338.8 million in the same period a year earlier.

Applix Inc. (APLX: chart), business management software provider, said that its fourth-quarter net earnings increased to $6 million, or 34 cents per share, compared with $2.48 million, or 15 cents per share, last year. Revenue climbed to $16 million versus $11.1 million in the same period a year earlier. Shares climbed 14.8%.

Blue Coat Systems (BCSI: chart), Internet monitoring equipment maker, shares rose 12.8% after the company rose its expectation for third-quarter revenue of $45.5 million to $47.5 million. Blue coat had previously forecast revenue of $40 million to $45 million.

Hooker Furniture (HOFT: chart) shares jumped 15.1% after the furniture maker posted fourth-quarter earnings of $3.5 million, or 29 cents per share, including restructuring and asset impairment charges totaling $2.3 million, or 19 cents per share. Revenue climbed 0.9% to $91 million in the quarter.

Jaco Electronics Inc. (JACO: chart) shares jumped 11.9% after the company said that it swung to a second-quarter profit of $149,000, or 2 cents per share, from a year-ago loss of $7.4 million a year ago. The company said the turnaround was due to its strategy of marketing product lines from core vendors as well as tight cost controls. The distributor of electronic components, said revenue climbed 37% to $66 million. The company added it recently entered into a new credit facility that provides additional working capital and offers a lower interest rate than its previous agreement.

Mettler-Toledo International (MTD: chart), makes instruments used to inspect products and develop drugs, said that its fourth-quarter net earnings increased to $52 million, or $1.31 per share, compared with $44.2 million, or $1.04 per share, in the year-ago period. Revenue climbed to $462.3 million versus $411.2 million in the same period a year earlier. Shares were up 6.2%.

Primedia (PRM: chart), magazine publisher said its board authorized the company to explore the sale of its Enthusiast Media segment to help cut its debt load of more than a $1 billion. Shares of the company rose more than 22% to $2.02.
Zones Inc. (ZONS: chart) shares jumped 17.9% after the reseller of technology products said that its fourth-quarter net earnings increased to $2.98 million, or 20 cents per share, compared with $1.97 million, or 14 cents per share, in the year-ago period. Revenue climbed slightly to $159.9 million versus $159.8 million in the same period a year earlier.

Alcatel-Lucent (ALU: chart) said Friday it planed to cut another 3,500 jobs after it swung to a loss in the fourth quarter, the first for which the newly merged telecom equipment maker reported combined earnings. Shares fell 3.1%.

Gateway Inc. (GTW: chart), computer maker, swung to a profit of $8.8 million, or 2 cents per share, after posting a loss in the same period a year ago, but revenue fell 9% to $1.02 billion from $1.12 billion a year ago. Gross margins also retreated to 5.2% from 6.2% in the prior year. Shares fell 10.2%.

[R]1:00PM European markets closed higher, driven by DaimlerChrysler.[/R]
European stocks gained ground on Friday, with DaimlerChrysler leading the automotive sector higher. DaimlerChrysler rose 3.2% after the automaker announced a deal to lower its stake in Airbus owner EADS from 22.5% to 15% as part of an effort to keep a balance between German and French ownership of the European aerospace group. DaimlerChrysler was also upgraded at Citigroup to buy from hold. Oil and resources shares also provided support as the price of crude oil reached nearly $60 a barrel. Oil company BP added 0.6%, while mineral extractor BHP Billiton climbed 1.6%. Outside the sector, Altran Technologies shares rose 5.9% as the technology-consulting company reported higher Q4 revenue. In deal news, British bus company First Group rose 6.2% after it agreed to buy Laidlaw International the for $3.6 billion. Currency moves were in focus ahead of a Group of Seven meeting of finance ministers in Germany. The German DAX 30 gained 0.5% at 6,911.11 and the U.K.''s FTSE 100 rose 0.6% at 6,382.80, with both indexes hitting six-year highs in the session. The French CAC-40 added 0.5% at 5,692.45.

The U.S. dollar traded mixed against its major currency rivals. The euro was quoted at $1.2990, down from $1.3038. The dollar bought 121.71 yen, up from 121.06. The British pound was quoted at $1.9479, down from $1.9583. European gold prices advanced. In London, gold traded at $663.30 per troy ounce, up from $655.30. In Zurich, the precious metal traded at $661.95 per ounce, up from $653.80. Silver closed at $13.82, up from $13.68.


[R]11:30AM Market averages traded in a lackluster fashion.[/R]
U.S. stocks traded in a lackluster fashion on bargain hunting. Investors weighed brokerage upgrades of giant automakers and the semiconductor sector along with earnings reports from companies like MasterCard and Gateway. General Motors Corp. (GM: chart) supported the Dow with an advance of 7% following positive analyst comments about the automotive sector. MasterCard Inc. (MA: chart) fell 8.6% after hitting a new 52-week high of $118.07. Computer maker Gateway (GTW: chart) slipped 8.4% amid plans to cut $20 million to $25 million in expenses and cut more jobs. Crude oil prices hovering round $60 a barrel also attracted attention.

Market also reacted to the first day of trading of Fortress Investment Group. (FIG: chart). Shares of the company started trading 89% higher at $35, as the company became the first U.S. hedge fund and private equity group to go public. Fortress priced its IPO at $18.50 a share, at the top end of a previously disclosed range of $16.50 to $18.50. The offering raised $634 million for Fortress. The new stock was recently up 74%.

In merger-and-acquisition news, auto parts supplier Lear Corp. (LEA: chart) agreed to be acquired by a group affiliated with billionaire investor activist Carl Icahn for about $2.8 billion. Under terms of the agreement, Icahn-controlled American Real Estate Partners LP will pay $36 a share. The offer represented a premium of 4% over the stock''s closing price last Friday of $34.67. Lear''s shares fell 3.9% in morning trading. In late morning trading, the Dow Jones industrial average was up 16.18, or 0.13%, at 12,653.81. The Standard & Poor''s 500 index rose 0.99, or 0.07 percent, to 1,449.30, and the Nasdaq composite index was down 4.74, or 0.19%, at 2,483.93. Bonds fell sharply following Poole''s comments; the yield on the benchmark 10-year Treasury note rose to 4.77% from 4.73% late Thursday.


[R]9:45AM Upgrades drove market opening up.[/R]
Upgrades for the Big Three automakers and a sector upgrade for the semiconductor industry boosted U.S. market opening. Ford Motor (F: chart) rose 3.6% and General Motors (GM: chart) increased 5.1% after Deutsche Bank upgraded their stock on hopes for favorable healthcare negotiations. Citigroup upgraded Daimler Chrysler (DCX: chart) sending its stock 2.3% higher. Among chip stocks, Dow component Intel added 0.5%.

Companies releasing earnings reports included Gateway Inc., MasterCard International Inc. and Weyerhaeuser Co. Gateway Inc. (GTW: chart) stock fell 7% as the computer maker''s quarterly revenue fell 9% from year-earlier levels. MasterCard Inc. (MA: chart) said its Q4 net income exceeded expectations as strong consumer spending boosted transactions. The company posted quarterly profit of $41 million, or 30 cents per share, compared with a loss of $53 million, or 39 cents per share, a year earlier. Revenue rose 17.2% to $839 million from $716 million a year ago. MasterCard raised its quarterly cash dividend by 66.7% to 15 cents per share from 9 cents per share. The results drove shares of MasterCard to an all-time high before tumbling 5% in early trading.

Weyerhaeuser Co (WY: chart), forest products maker, said it swung to a Q4 profit from a year-ago loss. The company posted earnings of $1.88 per share, compared with a loss of 86 cents per share, beating estimates of 75 cents a share. Revenue fell 1% to $5.66 billion. In the first hour of trading, the Dow Jones industrial average was up 33.17, or 0.26%, at 12,670.80. The Standard & Poor''s 500 index was up 4.00, or 0.28%, at 1,452.31, and the Nasdaq composite index was up 7.77, or 0.31%, at 2,496.44.