12:30PM European markets advanced on tech gains.
European markets posted solid gains Tuesday, boosted by strength in the technology sector and positive mood on Wall Street following strong quarterly results at Goldman Sachs. In the European chip sector, Infineon Technologies advanced 4.2%, while STMicroelectronics jumped 4.5%. Mobile phone giant Nokia rose 2.8% after it signed two deals in China worth more than 2 billion euros. The tech sector owed its upside move to a brokerage upgrade at Credit Suisse. Banks were also in focus. J.P.Morgan downgraded UBS and BNP Paribas, but upgraded ABN Amro. The German DAX 30 and the French CAC 40 both jumped 1.3%, while London FTSE 100 rose 0.8%.

Oil prices dropped below $65 a barrel, showing a retreat for a seventh straight session. Light crude October delivery fell 71 cents to $64.90 a barrel. London Brent dropped 4 cents to $64.51. The U.S. dollar traded mixed. The euro traded at $1.2687, down from $1.2701. The dollar bought 117.72 yen, up from 117.51. The British pound stood at $1.8747, up from $1.8645. European gold gained some ground after yesterday’s losses. In London the precious metal traded at $593.40, up from $585.30 per ounce. In Zurich gold traded at $591.85, up from $585.55. Silver closed at $11.23, up from $11.22.


11:30AM Brokerage stocks supported market sentiment.
The U.S. market averages traded higher Tuesday, benefiting from strength in the brokerage sector after Goldman Sachs (GS: chart) released better-than-expected quarterly results. A further decline by the oil price also generated positive mood. Management shake-ups at Hewlett-Packard Co. (HPQ: chart) and Bristol-Myers Squibb Co. (BMY: chart) were also in the spotlight. Bristol-Myers announced that CEO Peter Dolan and the company''s general counsel would both be leaving the company. The company’s shares gained 2%.Meanwhile, Hewlett Packard announced that Patricia Dunn will step aside as chairwoman Jan. 18 and will be succeeded by CEO Mark Hurd. The stock added 1.6%.

Semiconductors rallied after Credit Suisse upgraded the entire chip equipment sector, with Applied Materials Inc (AMAT: chart) gaining 4% after its stock rating was raised to outperform from neutral. Networkers, brokers, airlines and home builders rallied more than 2%. Transportation stocks also posted strength. At the same time, utilities showed weakness. In late morning trading, the Dow Jones industrial average rose 58.67, or 0.51%. The Standard & Poor''s 500 index was up 7.06, or 0.54% and the Nasdaq composite index rose 16.94, or 0.78%.Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.85% from 4.80% on Monday.


10:30AM The Sensex recovered early losses on strong industrial data.
The Sensex on BSE finished 110.10 points higher, or 0.95%, at 11,660.79. The BSE benchmark index traded in a range of 226.45 points under extremely volatile conditions. The total turnover on BSE was Rs 3,343 crore, slightly higher than Monday’s turnover of Rs 3,390 crore. The turover on NSE was Rs 7,260.49.

The market-breadth was negative for the greater part of the day and turned positive as buying intensified for small-caps and mid-caps. On the market, 1,243 shares advanced, while 1,217 declined and 79 shares remained unchanged. From the 30-Sensex stocks, 23 advanced and 7 declined.

India’s industrial production advanced 12.4% in July from the previous year, beating expectations, due to strong manufacturing and electricity output, data showed on Tuesday.

Advancers
Reliance Communication led the advancers, rising 3.82% to Rs 326.35 on 23.64 lakh shares. Hero Honda also gained 2.92% to Rs 767, NTPC rose 2.73% to Rs 124.20, ACC advanced 2.63% to Rs 929.05, TCS jumped up 2.51% to Rs 979 and Cipla climbed 2.24% to Rs 250.50. Index heavy, Reliance Industries spurted to Rs 1,109.80, as buying intensified. It closed 1.71% higher, at Rs 1,106.25, on a volume of 21.47 lakh shares. Reliance Industries was the most-active stock on BSE with a turnover of Rs 235.80 crore.

IT stocks were also in focus with buying spread over frontline as well as second line stocks. Mphasis gained 5.73% to Rs 184.40, HCL Technologies moving up 2.96% to Rs 569, Hexaware was up 2.92% to Rs 154.90, Infosys Technologies gained 1.77% to Rs 1767, Patni Computer advanced 1.92% to Rs 391.10 and Wipro edging up 1.21% to Rs 505.80.

Bank stocks rise on strong volume.
State-run SBI gained 1.41%, to Rs 930.80, as 5.55 lakh shares were traded on BSE. Other banks also advanced. Corporation Bank edged up 0.98% to Rs 313, Bank of Baroda gained 7.21% to Rs 257.90, Punjab National Bank jumped 3.15% to Rs 477, Oriental Bank of Commerce moved up 3.05% to Rs 206.20 and Union Bank of India surged 6.33% to Rs 118.50.

Private banks were also in demand. ICICI Bank advanced 1.62%, to Rs 606, Karnataka Bank was up 5.57% to Rs 113.80, IndusInd Bank climbed 1.77% to Rs 43.15 and HDFC Bank notched up 2.01% to Rs 839.15.

Decliners
ONGC led the decliners on BSE. It sank 2.21% to Rs 1,150.90, Hindalco shed 1.15% to Rs 172.40, BHEL was off 1% to Rs 2,232, Hindustan Lever fell 0.33% to Rs 229.30 and L&T dropped 0.17% to Rs 2,458.


9:45AM Stocks opened on a positive note on Goldman Sachs earnings.
U.S. stocks opened on a positive note Tuesday as better-than-anticipated quarterly earnings from Goldman Sachs helped offset news of a record trade deficit in July. The Commerce Department said the U.S. trade deficit widened to a record $68 billion in July, raising worries about the U.S. economy and corporate profits from overseas sales. Investment bank Goldman Sachs (GS: chart) said its fiscal Q3 profit fell 1% from a year ago, but came in above expectations. The stock rose 3%. Rival Lehman Brothers (LEH: chart) rose 1.9%, while Morgan Stanley (MS: chart) shares were up 1.6%.

Analyst upgrades in the semiconductor sector offset negative news from Texas Instruments ((TXN). The chip maker fell 1.5% after forecasting lower Q3 financial earnings and revenue targets. Semiconductor shares rose with Applied Materials (AMAT: chart) up 3.4% after Credit Suisse raised its rating on the company and the whole semiconductor sector. Among other stocks in focus, Dow component McDonald’s (MCD: chart) said its U.S. sales at restaurants open at least one year rose 3.5% in August. Systemwide sales for McDonald''s restaurants worldwide increased 8.6% in August, or 7.1% in constant currencies. The stock was up 0.8% at $37.43. Drugmaker Bristol-Myers Squibb (BMY: chart) rose 2% after its CEO was replaced. In the first hour of trading, the Dow Jones industrial average rose 21.37, or 0.19%. The Standard & Poor''s 500 index was up 2.87, or 0.22%, and the Nasdaq composite index rose 7.65, or 0.35%.


09:00AM Stock futures pointed to a flat opening.
U.S. stock market futures were sitting near the flat mark Tuesday morning after news of a failed attack on the U.S. embassy in Syria and data showing wider-than-expected trade deficit. Commerce Department said the U.S. trade deficit widened much more than expected in July to a record $68 billion. Yet, upgrades in the technology sector and a rise by the shares of Goldman Sachs helped offset worries about Texas Instruments Inc.''s Q3 forecast.

Investment bank Goldman Sachs (GS: chart) said its fiscal Q3 profit fell 1% from a year ago, to $1.59 billion, or $3.26 a share on revenue $7.46 billion. Analysts had expected earnings of $2.97 a share on revenue of $7.17 billion. After the bell on Monday, shares of Texas Instruments (TXN: chart) slipped 1.6% as the world''s biggest maker of chips for mobile phones lowered its Q3 forecast of earnings and revenue targets. But shares of Applied Materials Inc. (AMAT: chart) rose 1.3% before the opening bell after Credit Suisse raised its rating on the company and the entire semiconductor sector. Standard & Poor''s 500 futures were down 1.8 points, but above fair value. Dow Jones industrial average futures were down 10 points, and Nasdaq 100 futures were down 3 points.