12:30PM European markets ended up on tech and mining stocks.
European markets closed in the positive, supported by gains for mining and technology stocks. Airlines also offered support boosted by oil prices retreat below $70 a barrel. The tech sector advanced, with STMicroelectronics and Infineon Technologies each rising 1.7% after Merrill Lynch reiterated its buy rating on STMicroelectronics. Miners such as Rio Tinto and BHP Billiton helped the resource sector higher. Copper miner Antofagasta added 2.9% after reporting an above-consensus 79% rise in first-half pretax profit. The German DAX 30 edged up 0.1%, while the French CAC 40 and London FTSE 100 both rose 0.5%.

Oil prices further declined, extending yesterday’s sell-off. Light crude October delivery fell 86 cents to $69.75 a barrel. London Brent October delivery slipped 98 cents to $69.84. The dollar traded mixed versus major currencies. The euro traded at $1.2758, down from $1.2787. The dollar bought 116.95 yen, down from 117.13. The British pound stood at $1.8906, down from $1.8952. European gold prices dropped. In London the precious metal traded at $609.50, down from $623.90 per ounce. In Zurich gold traded at $607.95, down from $614.48. Silver closed at $11.93, down from $12.31.


11:30AM Weaker consumer confidence data weighed.
Stocks came under pressure after data showed consumer confidence in August sharply dropped, adding to recent concerns about the strength of economy. Consumer confidence index dropped to a nine-month low of 99.6 in August from 107 in July, well below forecast for a fall to 103. Mortgage lenders traded sharply lower after First Horizon National Corp. (FHN: chart) said mortgage banking weakness and settlement of a lawsuit should reduce Q3 pretax earnings by $56 million. Shares of First Horizon slipped 3.5%, while Countrywide Financial Corp. (CFC: chart) dropped 2.8%. A further decline by the oil price dragged shares of major oil companies. Exxon (XOM: chart) shares fell 1.2%, Chevron (CVX: chart) stock lost 1.2%, and ConocoPhillips (COP: chart) fell 1.4%.

In corporate news, life insurance company Prudential Financial agreed to pay $600 million to settle charges with federal and state regulators that one of its units engaged in inappropriate mutual fund trading. The settlement with the Justice Department, covering trades totaling more than $2.5 billion made from 1999 to 2000, is the first in the market timing scandal in which an institution admitted to criminal wrongdoing. Shares of Apple Computer Inc. (AAPL: chart) fell 2.5% after news that the company''s dominant iTunes music store could face more competition.


10:30AM The Sensex ended higher on lower oil prices and firm Asian stocks.
The Sensex on BSE advanced 87.33 points, or 0.75%, to close at 11,706.85, hitting an intra-day high of 11,739.77, its highest in three straight months. The turnover on BSE was Rs 2,653 crore, higher than Monday’s Rs 2,366 crore.

The market-breadth waned during the trading session. At close 1,240 shares advanced, 1,276 declined and 59 shares remained unchanged. Decliners outpaced advancers by a ratio of 1.02:1. In early trade, the market-breadth was strong as the advance-decline ratio reached 2:1. The Sensex on BSE traded in a narrow range of 11,690 and 11,739.

In trading today, Infosys gained 1.9%, to Rs 1,803, Wipro advanced 2.7%, to Rs 527, Satyam Computer added 0.8%, to Rs 818 and TCS edged up 0.7%, to Rs 990. Large-cap ONGC rose 2.3%, to Rs 1,225. Housing finance company HDFC gained 2% to Rs 1,290 on hopes of continued strong demand for home loans due to an ongoing housing boom. The stock surged in the second half of the trading session.

Other stocks which advanced included Reliance Communications adding 3.4% to Rs 310 on 17.8 lakh shares traded on BSE and car large-cap Maruti Udyog gaining 2.6% to Rs 856 on expectations that the government may not hike domestic fuel prices. Power equipment company BHEL advanced 1.8% to Rs 2,286 in the wake of the company statement on Tuesday that it will invest Rs 1,600 crore in modernisation and capacity expansion. ICICI Bank also added 1.4% to Rs 596 on optimism that interest rates may freeze in the near term.

Reliance Industries declined 0.5% to Rs 1,116. The stock experienced a weakness in the second half of trading after being higher and trading at Rs 1,125 - Rs 1,126 for a better part morning trade. Tata Steel also declined in the latter part of the day. The stock fell 2.2% to Rs 515.85, down from the session’s high of Rs 541. Hindustan Lever lost 2.2% to Rs 234.50. Tech Mahindra shed 2.7%, to Rs 537.50 on profit-taking, in the wake of strong performance on its first day of trading.

Cement stocks declined on Tuesday. Gujarat Ambuja shed 1%, India Cements was down 2% and Mangalam Cement sank 3%, all leading the decliners in the sector. UltraTech Cement ended the day higher by 2%. UltraTech which is part of the Aditya Birla Group, has proposed Rs 27-billion expansion plan over the next three years.

Select stocks, not part of the Sensex group soared. MRO-Tek, Goetze India, Manali Petro, GV Films, Hercules Hoists, Sterling Holiday Resorts, Gulshan Sugars, Rana Sugars, Batliboi, Indiabulls, Dalmia Cement, Surya Pharma, Praj Industries, Ambika Cotton, Era Construction, High Energy Batteries, Crest Animation Studios, and GMR Industries all gained between 5% and18% .


9:45AM Stocks lacked direction at opening.
Stock markets lacked direction at opening with investors cautious ahead of FOMC meeting minutes and consumer confidence report. Oil prices continued to retreat, falling below $70 per barrel, contributing to some early strength in the airline sector. At the same time, the continued decrease by the price of oil led to significant weakness among energy stocks. Retailers, which posted solid gains Monday, extended their advance. Restoration Hardware Inc. (RSTO: chart) surged 15% after the company said it swung to a quarterly profit and expects margin improvements. In the first hour of trading, the Dow Jones industrial average dipped 10.16, or 0.09%. The Standard & Poor''s 500 index fell 1.27, or 0.10%, and the Nasdaq composite index fell 1.01, or 0.05%.

Consumer confidence sharply dropped.
Tuesday morning, the Conference Board released its report on consumer confidence in the month of August, showing that its consumer confidence index fell much more than economists had been expecting. The report showed that the consumer confidence index fell to 99.6 in August from an upwardly revised 107 in July. Economists had been expecting a more modest decline to a reading of 103 compared to the 106.5 originally reported for the previous month. The steep decline by the index reflected deterioration in both consumers'' assessment of current economic conditions and their outlook for the next six months. The Conference Board said that its present situation index fell to 123.4 in August from 134.2 in July, as those claiming conditions are good fell to 26.1 percent while those claiming conditions are bad rose to 16.7 percent. Consumers'' assessment of labor market conditions was also less favorable, as those saying jobs are plentiful fell to 24.4 percent while those claiming jobs are hard to get rose to 21.1 percent. As mentioned above, consumers'' outlook for the next six months also deteriorated, with the expectations index falling to 83.8 in August from 88.9 in July. The report showed that those anticipating business conditions to worsen rose to 12.9 percent while those expecting conditions to improve fell to 15.9 percent. The outlook for the labor market was also less favorable.


9:00AM Stock futures indicated a flat to higher opening.
U.S. stock futures pointed to a slightly higher opening Tuesday, supported by expectations that the FOMC meeting minutes, due out later in the session, won’t reignite interest-rate jitters. The economic calendar Tuesday will also focus on the Conference Board''s August consumer confidence data.

Among companies releasing quarterly results, Bayer (BAY: chart) reported Q2 earnings climbed 11% from the prior year, driven by sales growth from continuing operations. In addition, Bayer said it launched restructuring program that includes the closing of certain cites and elimination of 1,500 jobs, especially in North America. In corporate news, shares of Boeing Co. (BA: chart) rose 0.7% before the opening bell after the jet maker''s board approved a plan to buy back up to $3 billion of its own shares. Coca-Cola Co. (KO: chart) said it acquired a controlling holding in Kerry Beverages Ltd., a bottling joint venture it formed in 1993 with Kerry Group, a Hong Kong conglomerate.

BP PLC (BP: chart) declined in London on news that federal regulators have begun criminal and civil investigations into whether it manipulated U.S. crude-oil and unleaded gasoline markets. Disclosure of the investigations comes as BP has been summoned before the House Energy and Commerce Committee to explain the recently discovered pipeline leak at its Prudhoe Bay, Alaska. S&P 500 futures were up 1.2 points, a touch above fair value. Dow Jones industrial average futures rose 15 points, and Nasdaq 100 futures gained 3.25 points.