[R]11:30AM Market averages traded in the negative on profit-taking.[/R]
U.S. stocks continued to trade in the negative territory as investors locked in profit taking after the recent strong rally. Market also digested data that signaled slower economic conditions in the coming months. The Conference Board said its index of leading economic indicators dropped 0.5%, higher than the 0.1% decline analysts were expecting. In addition, Federal Reserve Chairman Ben Bernanke gave a stern speech on subprime mortgage markets and their impact on housing. However, he pointed out that these problems are not likely to affect the broader economy to a great extent.

Among the most notable movers, Dow component Caterpillar Inc. (CAT: chart) weighed on blue chips with a decline of 1.9% after a downgrade from a buy to a hold. Micron Technology (MU: chart) weighed on tech shares, losing 3.7% after filing to sell $1.1 billion in convertible notes. However, Sun Microsystems (SUNW: chart) provided support, posting an advance of 4.3% after it announced its board has authorized a buyback of up to $3 billion.

By sector, disk drive, gold, and semiconductor stocks moved notably lower. Meanwhile, airline, oil, and computer hardware stocks advanced, helping to limit the downside for the markets. The Dow Jones industrial average fell 4.39, or 0.03%, to 13,483.14, after reaching its 23rd record close of the year on Wednesday. The Standard & Poor''s 500 index fell 1.63, or 0.11%, to 1,512.51, and the Nasdaq composite index fell 4.33, or 0.17%, to 2,543.09.

[R]Leading indicators index dropped 0.5% in April.[/R]
Thursday morning, the Conference Board released its report on leading economic indicators in the month of April, showing that its leading indicators index unexpectedly fell following an upwardly revised increase in the previous month. The report showed that the leading index fell 0.5 percent in April compared to an upwardly revised 0.6 percent increase in March. Economists had expected the index to come in unchanged compared to the 0.1 percent increase originally reported for the previous month.

The unexpected decrease by the index was partly due to a notable drop in housing permits, although the Conference Board noted that weaknesses among the leading indicators have been somewhat more widespread than the strengths over the past few months. The Conference Board also said that the coincident index increased 0.2 percent in April, with the largest positive contribution coming from industrial production followed by personal income. The lagging index also increased 0.2 percent in April.


[R]9:45AM U.S. markets opened lower on profit taking ahead of economic data.[/R]
U.S. stocks opened lower on Thursday, with investors taking profit after recent rally ahead of data on leading economic indicators. Wall Street also awaited a speech by the Fed Reserve Chairman Ben Bernanke that could provide clues to whether problems with subprime mortgage loans could affect the broader economy. An increase by the oil price also weighed on market sentiment, as light sweet crude rose 47 cents to $63.02 on the Nymex.

Merger-and-acquisition news failed to lift market sentiment. Alliance Data Systems (ADS: chart) surged 26% after the provider of transaction, credit and marketing services agreed to be acquired by Blackstone Group in a deal worth $7.8 billion. The private-equity firm is paying $81.75 a share, a 30% premium to Wednesday''s closing price of Alliance Data, including debt assumption. In other deal news, Acxiom (ACXM: chart) surged 16% after the company agreed late Wednesday to be acquired by Silver Lake and ValueAct Capital for $3 billion, or $27.10 per share in cash, including the assumption of $756 million in debt.

On the earnings news front, J.C. Penney Co. (JCP: chart) rose 4.5% after it posted a 13% increase in Q1 profits that fell slightly below analyst estimates. The retailer also raised its profit outlook for the year. Hewlett-Packard (HPQ: chart) posted Q2 results that included an extra $3 billion in sales. The Dow Jones industrial average was down 18.04 points, or 0.13%, at 13,469.49. The Standard & Poor''s 500 Index was down 2.11 points, or 0.14%, at 1,512.03. The Nasdaq Composite Index was down 2.75 points, or 0.11%, at 2,544.67.


[R]9:30AM The FTSE 100 trades higher Thursday on oil stocks and deal talks.[/R]

The FTSE 100 in London added 12 points, or 0.2%, to 6,571.9 in lunchtime exchanges.

Advancers

The oil sector led the advance in London. Royal Dutch Shell rallied 2.5 per cent, as crude prices climbed towards $69 a barrel. BP was up 1.4 per cent and BG Group added 0.5 per cent.

Prudential advanced 1% on rumours that it may be broken up. Mark Tucker, chief executive of the insurer, is expected to come under pressure at the annual meeting of the company today to address calls to break up the business. Ratings agency Moody''s put a negative outlook on the UK arm.

Old Mutual gained after Deutsche Bank upgraded the insurer from hold to buy and its price target. It traded 2.5 per cent higher.

Credit information group Experian surged 2.4 per cent on reports that it could be a potential bid target after US peer Acxiom Corp agreed to be bought for $3 billion.

Emap shares were 6.2 per cent higher after the media group said that Tom Moloney was to resign as chief executive and step aside from the board by mutual agreement.

Decliners

BT Group lost 2.1 per cent after it reported fourth quarter results, largely in line with expectations. The company also announced details of a 2.5 billion pound share buyback. Underlying earnings for the three months to 31 March were up 3% on revenue 3% higher.

InterContinental Hotels shares declined tracking a strong rally in the previous session on renewed talk of bid interest. The stock shed 2 per cent.