Other news

Cairn Energy Plc, an Edinburgh-based company that drills for oil and gas in South Asia, set a price range of 160 rupees to 190 rupees ($3.58 to $4.25) for each share of its Indian unit, which is making an initial sale. The company will issue about 538.5 million Cairn India Ltd. shares in the sale, which may be the second-largest IPO in India.


9:45AM Stocks opened in the negative. Retailers in the spotlight
U.S. stocks reopened lower after the Thanksgiving holiday, dragged down by concerns about the strength of the retail sector, following a same-store sales decline at Wal-Mart Stores Inc. The 0.1% drop also raised worries about the strength of consumer spending during the holiday season. At the same time, early reports showed 6% higher retail sales on Black Friday, almost $9 billion more than last year. Among retailers, Wal-Mart (WMT: chart) dropped 2.1% following its report, while a number of specialty electronics retailers advanced on reports of strong traffic in stores over the weekend. Best Buy Co. (BBY: chart) rose 1.4%, while Apple Computer Inc. was up 0.3%.

Google (GOOG: chart) shares were also in the spotlight, falling 2% after a Barron''s article over the weekend said the stock had an ''exceedingly rich valuation''. In the first hour of trading, the Dow Jones industrial average fell 45.99, or 0.37%, to 12,234.18. The Standard & Poor''s 500 index was down 3.37, or 0.24%, at 1,397.58, and the Nasdaq composite index fell 12.34, or 0.50%, or 2,447.92. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.59% from 4.55% late Friday.


9:30AM FTSE 100 down in early trading as BAE plunge weighs on stocks.
By mid-day, the FTSE 100 was down 26.9 points, or 0.5%, to 6,095.6, its lowest level since early October.

Decliners

BAE Systems group lost 3.9% following reports that Saudi Arabia could pull out of a 7,6 billion pounds contract to buy 72 Eurofighter aircraft.

In bid news, MyTravel confirmed an approach for First Choice Holidays about the possible acquisition of its tour operating business. MyTravel added that any offer would be funded in cash, through a mixture of new debt and equity, with the deal possibly funded through issuing shares to First Choice shareholders. Large dollar earners also fell. Rolls Royce slipped 1.8% and Hanson eased 1.8%.

Advancers

Wilson Bowden rose 13.1% as it confirmed discussions with a number of parties about a possible offer for the company. THis helped rivals Persimmon gain 1.2 %, George Wimpey advance 1.5% and Bovis Homes firm 1.2%. First Choice shares jumped 14.4% while MyTravel Group gained 8.1%.

Plumbing and heating company BSS added 3.3%. Mitie Group firmed 2.8% as the cleaning and maintenance specialist reported a 28% increase in interim pre-tax profit.

Civil engineering consultant Hyder lifted its half year dividend by over 70% as it reported strong growth in all parts of the business. Hyder rose 4.20%.


9:00AM Stock futures declined on lower Wal-Mart same-store sales and higher oil.
U.S. stock market futures declined on Monday on concerns about a weak retail environment after a disappointing sales forecast from Wal-Mart Stores Inc (WMT: chart). Shares of the world''s biggest retailer dropped 0.7% before the bell, as November same-store sales fell 0.1%. Consequently, shares of discount retailer Target (TGT: chart) fell 2.5%, while department stores J.C. Penney (JCP: chart) and Sears Holdings (SHLD: chart) slipped about 1.5%. Retailers will be in the spotlight as early reports show 6% higher retail sales on Black Friday, almost $9 billion more than last year.

An increase in crude oil prices also generated negative mood. Crude oil gained 1% crossing $60 a barrel before retreating to $59.65. Commodity prices rose as the dollar continued to suffer considerable weakness against the euro. However, the greenback gained some ground against the yen. The U.S. currency slipped amid comments from China that it sees risks for its dollar holdings as well as slowing U.S. economic growth. Standard & Poor''s 500 futures were down 2 points, slightly below fair value. Dow Jones industrial average futures were down 15 points, and Nasdaq 100 futures were down 4.75 points.


8:30AM Wal-Mart is planning to open stores in India.
U.S. retail giant Wal-Mart (WMT: chart) is planning to open stores in India. Although India does not allow foreign companies to open multi-product retail stores, they can still make wholesale purchases to support their global supply chains. It would take several months before the first of the stores opened their doors.

Wal-Mart tied up with India''s business conglomerate Bharti Enterprises Ltd. to set up hundreds of stores across the country, the CEO of the Indian company said Monday. However, he refused to reveal the financial terms of the deal, except for telling reporters that a memorandum of understanding for a joint venture and a franchise agreement had been signed.