Advancers

Home Retail and Experian, the old GUS, are both doing. Home Retail Group is 0.98% while Experian spurted 3.09%.

Vodafone was among the stocks, leading the gainers, up 0.55% %, as the largest mobile phone operator in the world reported a rise in interim revenues to 15.6 billion pounds and confirmed its guidance.

InterContinental Hotels was 1.3% higher after the hotels group posted a 10% increase in third-quarter revenue.

Resolution, the closed life fund consolidator, advanced 1.6% on hopes it could find a merger partner.

Engineering design group Aveva rose 11.20% as it issued another earnings upgrade. First half profits rose by 191% and the second will beat market forecasts Aveva announced.

Miners also enjoyed a strong showing after sharp falls in the previous session. Xstrata rose 1.4%, Rio Tinto gained 0.8% and Kazakhmys was 0.8% stronger.

Decliners

Acambis is one the worst peformers, down 38.19%, as the vaccine maker warned that the US has dropped it from its smallpox vaccine tender process.

BskyB took a hit, declining 1.36%, as Deutsche Bank announced that the satellite broadcaster guided down forecasts for next year.

Energy group and bid target Scottish Power started the day brightly but has slipped down 0.61% despite first half profits also topped the forecasts of analysts.


9:00AM Stock futures turned higher on inflation data and retail results.
U.S. stock market futures turned higher before opening, as strong economic data eased inflation worries and raised optimism about consumer spending. Upbeat financial results from retailers also added to the positive sentiment. The Labor Department said that the producer price index fell sharply to a five-year low of 1.6% in October. The core PPI, which excludes food and energy costs, fell 0.9%, the biggest drop since August 1993. The weak numbers were a surprise, as economists were expecting the index to fall by 0.5%, while core prices were expected to rise 0.1%. In another report, the Commerce Department said that U .S. retail sales fell in October for the second month in a row, dragged down by falling gasoline prices. Retail sales fell 0.2% in October after a downward revision of 0.8% in September.

Among retailers, Wal-Mart Stores Inc. (WMT: chart), the world's biggest retailer, posted 11.5% higher quarterly profit to $2.65 billion, or 63 cents a share, compared with $2.37 billion, or 58 cents a year ago, beating estimates of 59 cents. Same-store sales were 1.5% higher. Wal-Mart forecast Q4 same-store sales would be up 1 to 2%. Wal-Mart shares rose 1% in electronic trading before the bell.

In contrast, Home Depot Inc. (HD: chart), the world's largest home improvement retailer, reported a quarterly profit below analysts' estimates and sharply cut its forecast for earnings and sales growth in 2006. Its shares fell 3.8% before the bell. Home builder D.R. Horton Inc. (HDR: chart) said Q4 profit fell 51% to 88 cents per share, compared with a profit of $1.77 per share last year on 4% revenue decline. Still the quarterly results exceeded estimates of profit increase to 69 cents per share. Homes closed fell 7% to 17,261, while net sales orders for Q4 dropped 25% to 10,430 homes. S&P 500 futures were up 0.40 point, but about even with fair value. Dow Jones industrial average futures were up 5 points and Nasdaq 100 futures were up 0.25 point.


8:00AM Home Depot Q3 profit dropped on slowing housing market.
Home Depot (HD: chart), the nation's largest home improvement store chain, reported 3.1% profit drop in Q3, blaming slowing housing market with considerably lower same-store sales. The company said it earned $1.49 billion, or 73 cents a share, compared with a profit of $1.54 billion, or 72 cents a share a year ago, missing expectations of 75 cents a share. Revenue in the quarter rose 11.3% to $23.09 billion, up from $20.74 billion for the same period a year ago, but same-store sales dropped 5.1%. The company also lowered its full-year earnings per share and sales growth guidance.

The disappointing quarterly results were attributed to a slowing economy, falling home prices and slowing housing turnover. However, there was a bright spot in the quarter. The home builder posted growth in the company's Home Depot Supply business, with sales surging 159% to $3.5 billion.

For the first nine months of 2006, Home Depot reported net income of $2.32 a share, higher than $2.11 a share a year ago on revenue increase of 13.8% to $70.57 billion. Home Depot said that 2006 earnings per share will grow 4% to 5% over fiscal 2005 and that sales will grow for the year by about 12%.