[R]9:45AM Market opened mixed.[/R]
Stock markets opened lower as a rebound in oil prices inspired investors to do some profit taking, offsetting better-than-expected retail sales in September and lower unemployment claims last week.

Department store and teen retailers posted strong sales in September, buoyed by back-to-school purchases and some unfavorable weather conditions. Bebe Stores (BEBE: chart), Children's Place (PLCE: chart), and American Eagle Outfitters (AEOS: chart) were among the teen retailers posting notably higher sales. Of the department stores, Federated Department Stores (FD: chart), J.C. Penney (JCP: chart) and Nordstrom Inc. (JWN: chart) posted same-store sales that exceeded estimates.

At the same time, discount retailers struggled in September. Wal-Mart Stores Inc. (WMT: chart) said sales at stores open at least a year rose just 1.3%. Costco Wholesale (COST: chart) posted a 4% same-store sales rise, below estimates. Target (TGT: chart) sales exceeded expectations of a 5% growth, posting 6.7% rise.

Among other companies in focus, Apple Computer (AAPL: chart) fell 1.4 % on corporate news related to company’s stock options. Hewlett-Packard (HPQ: chart) lost 1% after California Attorney pressed criminal charges against former Chairwoman Patricia Dunn and four other officials connected with the company's investigation into boardroom leaks. In the first hour of trading, the Dow fell 18.25, or 0.15% to 11,832.36. The S&P 500 index fell 1.37, or 0.10, to 1,348.85, and the Nasdaq composite index fell 3.34, or 0.15% to 2,287.61.


[R]9:30AM The FTSE 100 advanced by mid-day on likely merger deal.[/R]
The FTSE 100 in London advanced 31.2 points at 5,997,7 at mid-day after breaching the 6,000 level early in the trading. The performance of the benchmark index was also helped by sharp gains on U.S. markets overnight, where the Dow Jones Industrial Average struck a fresh all-time high.

Advancers

Corus shares led the gainers in London, up 15% on news that Tata Steel is considering a bid offer.

Oil stocks rallied, as OPEC announced a reduction in production of 1m barrel a day. BG Group rose 1.7% and BP advanced 1.4%.

Mining stocks were also in demand. BHP Billiton rose 2.3%, Rio Tinto put on 2.2% and Anglo American gained 1.7%.

Some minor stocks surged. Spirent Communications jumped 10.6% after the telecommunications group said its third quarter trading matched expectations. Viridian, the Irish water group, was up 6.5% on talk that an imminent bid was coming. Grainger Trust rose 3.6% on expectations that Vincent Tchenguiz, the property entrepreneur, could enter the running to buy the company.

Decliners

British Airways, a heavy fuel user, fell 1.9%. Xstrata lost 8.3%, as it went ex-rights following a recent share issue. Stanelco slipped a further 20.4% despite the packaging group statement that plans for a fund raising were still on track.

Other news

The Bank of England left interest rates unchanged at 4.75% on Thursday, but the investors expect another quarter point rise before the year is out.

The European Central Bank on Thursday increased eurozone interest rates by another quarter percentage point to 3.25% to combat worries over inflation.


[R]09:00AM Stock futures pointed to a flat start.[/R]
Stock market futures indicated a flat market opening, a day after the Dow Jones Industrials hit a record high. Strong retailers'' September sales helped offset a rebound in crude-oil futures amid OPEC''s decision to reduce production. On Thursday, OPEC decided to cut output by a million barrels a day, sending crude futures above the $60 a barrel to $60.52.

Overall, same-store sales advanced by 3.8%, or up 5.1% excluding Wal-Mart Store. Wal-Mart (WMT: chart) said September sales rose at 1.3%, while total sales increased 12% to $31.21 billion. Target (TGT: chart) posted same-store sales increase of 6.7%, exceeding estimates of 5% growth. Costco Wholesale (COST: chart) reported a 4% same-store sales rise, slightly below analyst expectations. Starbucks (SBUX: chart) posted a better-than-forecast 6% monthly sales increase. Starbucks shares rose 5.1% in pre-open trading, while Costco shares fell 1.2%.

In economic news, the U.S. Labor Department said initial claims for state unemployment insurance fell 17,000 to 302,000 during the week ending Sept. 30. S&P 500 futures slipped 0.50 of a point at 1,357.80, while Nasdaq 100 futures rose 0.50 of a point at 1,693.00 Dow industrial futures eased 4 points to 11,902.