The Manufacturing and Inventory report this morning from Commerce Department failed to spark the market.

The report stated that March inventories were up 0.4%, smaller than expected, and up 7.9% from a year ago. While market generally ignores this report, the lower growth in Inventory, better-than-expected retail sales and lower deficit will certainly force most economists to revise their Q2 GDP growth rate projections.

The total business to inventories ratio is now estimated to be at 1.30 and it is hovering near ten-year low.

According to the University of Michigan report consumer sentiment dipped from 87.7 to 85.3 indicating that future retail sales may be flat for the year.

Major averages trade in divergent fashion. Yesterday’s weakness in metals and energy stocks is continued today on U.S. dollar strength. Major miners such as Rio Tinto, BHP, Phelps Dodge and Brazilian miner CVRD and oil companies such as Exxon Mobil, Stat Oil, Norsk Hydro, British Petroleum, Royal Dutch Shell traded lower.

Technology shares and semiconductor shares are trading higher on the strength in Dell earnings report. Intel, AMD, SanDisk, Maxim Integrated, Texas Instruments traded higher.

Sell-off continued in the large cap stocks towards the end of the session. Shares of Alcoa, DuPont, ExxonMobil sold off at the end of the day. Shares of Las Vegas Sands, Wynn Resorts, Phelps Dodge, Chiquita Brands, Peabody Energy, and DreamWorks Animation suffered more than 2% loss.

Toro Corp, Pacific Sunwear, Nortel, eBay, Maxim Integrated and SanDisk jumped more than 3%.

According to the selection panel for WTO Chief, France's Mr. Pascal Lamay is likely to be conferred to the job. If so, developing nations may find it harder to work with in the upcoming world-wide talks on trade. Mr. Castillo of Uruguay has asked his country to withdraw his candidacy.

South American markets closed lower, with losses in Brazil and Chile exceeding 1%, Mexico down 0.82% but Argentina closing higher by 3.75%.

In Other News

Australian share index closed lower by 0.4% on weaker metals and oil prices in Europe and NY. Shares of BHP and Rio Tinto were hit hard.

Indexes in Tokyo and Hong Kong lower by 1.0% and indexes in Sydney, Singapore and Mumbai were down. Taiwan bucked the trend in the region and was up mildly. Shares in Hong Kong were hit hard by the China’s attempt to curb property speculation.

Russia's offer of $15 billion pre-payment was accepted by Paris Club of sovereign donors. The recent run up in oil prices have helped the world's second largest oil exporter to build foreign exchange reserve of $145 billion, almost unthinkable in 1998 when Russia defaulted on $45 billion on foreign debt. Russia has $95 billion of foreign debt.

Mexican state oil firm Pemex said that it is likely to raise $1.75 billion in Asia, once a year, to diversify its investor base and on the recent fund raising success in the region.

Earnings Headlines


Tiffany, fine jewelry and china retailer, reported 1Q earnings of 27 cents vs. 25 cents a year ago. The strong sales in the U.S. helped to shadow the weakness in Japan. Total sales were up 12% from a year ago.

Delphi, auto parts maker reported 1Q loss of 74 cents vs. loss of 9 cents a year ago on 7% revenue decline.

Lawn maker Toro forecasted 2Q profit to top analysts’ expectation to $1.28-$1.33 from $1.15-$1.20. The company plans to release earnings on May 24th.