Walt Disney Company - The world’s largest theme-park operator posted 21% rise in fiscal second-quarter profit, topping analysts’ expectations and helped by the performance of its theme parks and studios.
Directv Group Inc - The largest U.S. satellite-television provider posted a 10% increase in first-quarter profit and will sell as much as $2.5B in debt to fund a share buyback.
On Semiconductor Corp - The maker of semiconductors said second-quarter sales may be as high as $560M, exceeding analysts’ estimates.
Syniverse Hldgs Inc - The provider of technology services to mobile-phone companies said annual sales for the year may reach as high as $465M, exceeding analysts' estimates.

Economists at Goldman said the 1% decline in Mar pending home sales was in line with expectations, but the true read on the housing market is worse than expectations as Feb data was revised downward, from -1.9% to -2.8%. "These data point toward continued weakness in existing home sales over the next several months." They added, regional disparities in the report are particularly stark this month, which cautions against assigning excessive weight to one month's reading on pending home sales, "but the overall trend is clearly still down."

The stock market is under selling pressure, as it falls to fresh session lows. The decline has been broad-based, with the exception of the energy sector (-0.1%), which is trading near its best level of the session. Crude oil has climbed even higher, hitting $123.79 per barrel.
Within the S&P 500, 73% of stocks are in the red. The main laggards are financial stocks, including AIG (AIG 46.80, -1.60), Wells Fargo (WFC 30.16, -0.80) and JPMorgan Chase (JPM 47.15, -1.05). IBM (IBM 124.25, +1.93) and Disney (DIS 34.76, +1.03) are providing leadership.

Liviu Flesar, senior trader at E-Forex - "Yesterday's rally to 1.5595 provides clues that there are good chances of a resume of the longer term uptrend against the dollar, thing that would bring the 1.6 zone back in focus. 1.5700 has to break first in order to signal a reversal. On the downside, minor support is seen at 1.5475 which is the 50% retracement of the 1.5360-1.5595 move. By breaking below 1.5475 the Euro may test lower support at 1.5430 then 1.5340-60."

The major indices continue to trade in a tight range near session lows. Four of the ten sectors are now in positive territory, although gains are modest with materials posting the largest advance of 0.5%.

The euro trades within striking distance of earlier low at $1.5365 and still seeming fragile. A couple of traders expect an assault of the key $1.5350 area that marks a pivot level between late March lows at $1.5340 and last Friday's post-payrolls low near $1.5360. Stops said a risk sub $1.5350.

Economic reports showed further weakness in housing and some strength in worker productivity. The productivity report's inflation component eased, but with record oil and gas prices, worries about pricing pressure remain a drag.
The Pending home sales index, a measure of the number of homes under contract to sell, dipped 1% in March, according to an industry report released Wednesday. The decline was in line with expectations.
Worker productivity rose at a better-than-expected 2.2% annual rate in the first quarter, the government reported Wednesday. Unit labor costs, the report's inflation component, slowed to an annual rate of 2.2% from 2.8% in the fourth quarter of 2007.
U.S. light crude oil for June delivery rose 51 cents to $122.35 a barrel on the New York Mercantile Exchange after briefly touching an all-time trading high of $122.81 earlier in the session. Prices were volatile after the weekly inventories report showed a surprise rise.
Oil hit record settlement and trading highs Tuesday after a Goldman Sachs analyst said crude prices could reach $150 to $200 within the next six months to two years.
COMEX gold for June delivery fell $11 to $866.70 an ounce.
Treasury prices slipped, with the yield on the benchmark 10-year note at 3.92%.

The major indices are stuck in a tight trading range this session. At its session peak the S&P 500 was up 0.1%, and at its trough it was down 0.4%.
A quick drop in financial stocks (-1.1%) is acting as a major drag on the stock market. Wells Fargo (30.57, -0.39), JPMorgan Chase (JPM 47.60, -0.60) and Bank of America (BAC 38.76, -0.48) are showing weakness. There are some bright spots, as NYSE Euronext (NYX 75.49, +2.54) is up 3.5% after reported earnings of $0.91, which was $0.08 better than expectations.

However, prices have moderated since and now back lower at $122.14.

The major indices continue to trade near the unchanged mark, with the Nasdaq posting a slight gain, while the S&P and Dow post slight losses.
The consumer discretionary sector is up 0.8% this session, sending it into positive territory for the year. Walt Disney (DIS 34.87, +1.14) and DirecTV (DTV 26.84, +1.04) are providing leadership, after both companies reported quarterly earnings that topped expectations.

WTI Nymex crude oil trades at $121.30, down 54 cents.

Ben May, economist at Capital Economics - "Nonetheless, softening activity should ultimately prompt the (European Central) bank to cut interest rates twice by the end of the year."

Gains in the dollar may be limited by speculation an industry report today will show the housing slump is slowing the U.S. economy. The National Association of Realtors' index of pending home sales fell 1 percent in March after a 1.9 percent decline in February, according to the median forecast of 30 economists surveyed by Bloomberg News.

Ryan Wang of HSBC says US Q1 productivity was stronger than expected at 2.2% vs consensus at 1.5%. He notes that output growth was only 0.4%, but hours worked fell by 1.8%. Unit labor costs came in at 2.2% vs consensus at 2.6%. While compensation per hour was up 3.4% y-o-y, "real compensation y-o-y is negative at -0.7%," Wang says. "Inflation pressures are not being generated from the labor market and wages costs should remain subdued as the unemployment rate continues to rise," he says.

S&P 500 and Nasdaq futures now point to a slightly higher start (S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +1.8.), as traders were encouraged by the better than expected productivity reading.
Walt Disney (DIS) reported earnings of $0.58 per share, topping expectations by seven cents. Cisco Systems (CSCO) beat its earnings estimate by two cents, and guided its fiscal fourth quarter in-line with expectations, but said the U.S. market has softened. Sprint Nextel (S) and Clearwire (CLWR) announced they have entered into a a definitive agreement to combine their wireless broadband businesses to form a new wireless communications company, named Clearwire. Crude oil, which is holding near the $122 per barrel mark, will go on the move with the release of the governments weekly energy report (14:30 GMT). On the economic front, March pending home sales will be reported at 14:00 GMT.

--Further euro rise could weigh on eurozone exports
--Exchange rates currently "excessively volatile"
--But no major drag yet seen on eurozone economy from euro rise
--ECB monetary policy facing difficult times
--EMU inflation rising due to soarinig oil, food prices
--Real interest rates are still at lows not seen for many years
--Sees return to low inflation after financial market turmoil subsides

EUR/USD said to gave run into some bids below $1.5400 area. Support now at $1.5395, which is the current value of the 1.00% moving average envelope. A break below here seen triggering weakness to $1.5362/68 -- where former is the low post Friday's US payrolls dataand latter the 38.2% retracement of advance from $1.4310.

The dollar rose against the euro after record fall of Retail sales in the euro area. Retail sales in the euro area declined 1.6 percent from a year earlier, the biggest drop since the data series began in 1995, the European Union's statistics office in Luxembourg said today. Sales fell 0.4 percent from the prior month.

A doubling of crude-oil prices in the past 12 months and soaring prices for food such as wheat and rice have undermined consumer sentiment across the euro area. Confidence among households in France dropped to a record low last month, while a European Commission index of sentiment in the euro area also fell in April.

Earlier the US currency halted two days of losses versus the euro. Federal Reserve Bank of Kansas City President Thomas Hoenig said ``serious'' inflation pressures may spur the central bank to raise interest rates.

The British pound dropped against the dollar after an industry survey showed U.K. consumer confidence fell in April to the lowest in at least four years.

The pound fell after Nationwide Building Society said an index of sentiment taken from the responses of 1,000 people declined seven points to 70, the lowest since the survey began in May 2004.
Deutsche Bank AG, the world's biggest currency trader, yesterday changed its forecast for U.K. interest rates, predicting the Bank of England will cut borrowing costs following a two-day meeting that ends tomorrow rather than leave them unchanged.

EUR/USD slid from $1.5540 to $1.5409 before sabilized within $1.5510/35. Bids $1.5420/00, $1.5380/70. Offers $1.5470/80, $1.5500/10.

GBP/USD fell from $1.9730 to $1.9550. Bids $1.9550/40, $1.9510/00. Offers $1.9590/00, $1.9610.

USD/JPY rose from Y104.60 to Y105.50.

US data start with Q1 productivity and labor costs figures due at 12:30 GMT.

Gains in the dollar may be limited by speculation an industry report today will show the housing slump is slowing the U.S. economy. The National Association of Realtors' index of pending home sales fell 1 percent in March after a 1.9 percent decline in February, according to the median forecast of 30 economists surveyed by Bloomberg News. The report is due at 1400GMT.

Unit labor costs +2.2% vs +2.5% expected and +2.8% in 4Q.

David Mann, currency strategist at Standard Chartered Bank - "The next move of the Fed will likely be a rate cut and we don't expect any rate hike in the next 12 months."

Hidenori Suezawa, chief fixed income strategist at Daiwa Securities SMBC - "Investors also held on to the view that the Fed would pause from its rate-cutting cycle and keep its key rate at the current 2.0 percent for the rest of the year."

Resistance 3:$1.5780
Resistance 2: $1.5640
Resistance 1: $1.5590
Current price: $1.5457
Support 1: $1.5450
Support 2: $1.5360
Support 3: $1.5280
Comments: Euro still under pressure after the weak data, holding a bit above session low on $1.5450 (support). Stronger level – on $1.5280. Break above $1.5590 will point to last week’s highs on $1.5640 and then – to $1.5780.

EUR/USD: $1.5750
USD/JPY: Y105.00, Y105.50, Y104.65
AUS/USD: $0.9450, $0.9385

EUR
Bids: $1.5460/50, $1.5430, $1.5420/00
Offers: $1.5500/05, $1.5520, $1.5540/50, $1.5600

JPY
Bids: Y104.50
Offers: Y105.20/30, Y105.50

GBP
Bids: $1.9635/25, $1.9600, $1.9550
Offers: $1.9670, $1.9690/1.9705, $1.9720

"Financial turmoil peaked six weeks ago, but the economic downturn is only beginning. It's still a recession, in our view, and that's no longer in the price. Indeed, reflecting higher energy quotes and slipping growth abroad, we see weaker US growth over the next few quarters than we did a month ago."

The dollar rose against the euro as Federal Reserve Bank of Kansas City President Thomas Hoenig said ``serious'' inflation pressures may spur the central bank to raise interest rates.
The currency halted two days of losses versus the euro.
The British pound dropped against the dollar after an industry survey showed U.K. consumer confidence fell in April to the lowest in at least four years.
The pound fell after Nationwide Building Society said an index of sentiment taken from the responses of 1,000 people declined seven points to 70, the lowest since the survey began in May 2004. The pound slid to $1.9688 from $1.9738.

EUR/USD slid from $1.5540 to $1.5480 before rebounding to $1.5514. But it was short-lived and soon rate declined to $1.5460.

GBP/USD fell from $1.9730 to $1.9650.

USD/JPY rose from Y104.60 to Y105.10.

Today there are a lot of economic releases. In Europe the schedule includes UK industrial production and EU retail sales. Among US data the Q1 productivity and labor costs figures come at 12:30 GMT.

Japan's leading stock markets ended Wednesday's session higher, rallying after an afternoon sell-off sent stocks lower. The benchmark Nikkei 225 was 53.22 points, or 0.38%, higher at 14102.48. Earlier, the index was ahead by more than 130 points. The broader-based TOPIX ended the session 15.89 points higher at 1393.28.

Stock market fixing:
Nikkei0.000.00%14,049.26
FTSE 100-0.300.00%6,215.20
CAC 40-22.44-0.44%5,040.92
Xetra Dax-34.98-0.50%7,017.10
DOW+51.29+0.40%13,020.83
NASDAQ+19.19+0.78%2,483.31
S&P 500+10.76+0.76%1,418.25
10yr Note+0.4800+0.125%3.893%
NYMEX Crude Oil+1.87+1.56%121.84
Gold+3.60+0.41%877.70

Japan financial markets were closed Tuesday in observance of national holiday.

European stocks fell for a second day after UBS AG lost $17.3 billion in its investment banking unit and Swiss Reinsurance Co.'s profit missed analysts' estimates, renewing concern that the crisis in credit markets will deepen.
Stocks extended declines after Fannie Mae, the largest U.S. mortgage-finance company, reported a wider loss than analysts predicted as the worst housing slump since the Great Depression deepens.
Zurich-based UBS sank 4.5%, the most since April 3. The world's biggest wealth manager saw clients pulling out 12.8 billion francs ($12.2 billion) in the first quarter, the first reduction since the second quarter of 2000, and said it expects ``tough business conditions'' to continue.
Swiss Re tumbled 4.8% after the company said profit fell to 624 million francs in the first quarter as premium income declined on falling rates and a further writedown. Aegon, the Dutch owner of U.S. insurer Transamerica Corp., sank 2.5%. Axa slipped 1.9%.
Rio Tinto rose 4.1% after copper reached a record. Kazakhmys Plc gained 4%. BHP Billiton Ltd., the world's biggest mining company, advanced 3.8%. Adidas AG rose 5.7%. The world's second-largest sporting-goods maker reported a 32% gain in first-quarter profit to 169 million euros, after squeezing suppliers for cost reductions and opening stores under its own brand. Earnings beat the 158.9 million-euro average estimate of four analysts. Stocks on Wall Street rose slightly after initially decline amid Fannie Mae posted a wider-than-estimated loss and UBS AG, Europe's largest bank, predicted ``tough business conditions'' because of the collapse of the subprime mortgage market.
Fannie Mae slumped after the largest U.S. home-loan financer reported a $2.19 billion loss, cut its dividend and said it will raise $6 billion in capital. Merrill Lynch & Co. dropped the most in five weeks after the largest U.S. brokerage reported a 70% increase in so-called Level 3 assets, the holdings most vulnerable to writedowns. Stocks fell in Europe and Asia as UBS lost $17.3 billion in its investment banking unit and Swiss Reinsurance Co.'s profit trailed estimates.
Stocks also were under pressure after Federal Reserve Chairman Ben S. Bernanke said accelerating home foreclosures may hurt the U.S. economy. Profits have slumped 13% on average for the 373 companies in the S&P 500 that have reported results so far.
D.R. Horton declined. The homebuilder reported a fiscal second-quarter net loss of $1.31 billion, or $4.14 a share, its biggest ever and almost seven times higher than analysts' estimates.
Wachovia Corp. retreated. The fourth- largest U.S. bank by assets said its net loss for the first quarter was $708 million more than previously disclosed because of valuation losses on bank-owned life insurance.
Legg Mason Inc. retreated too. The asset- management company posted a bigger-than-expected loss, its first as a public company, after bailing out money-market funds hurt by investments in debt backed by subprime mortgages.
Cisco Systems Inc. fell. The largest maker of networking devices will announce its earnings and outlook today after financial markets close. Cisco may predict a 9.1% jump in fiscal fourth-quarter revenue to $10.3 billion, according to the average of estimates in a survey of analysts.

The dollar fell for a second day against the euro Monday as Fannie Mae reported a larger-than-expected $2.19 billion loss, indicating the worst of financial-market turmoil may not be over. The currency also weakened versus the yen after the largest U.S. mortgage-finance company said it will cut its dividend and raise $6 billion in capital.
The yen may strengthen about 5% to Y100 in the next three months on speculation investors will cut holdings of higher-yielding assets as housing and economic growth slow further, according to a UBS AG note to investors today. The Bank of Japan held its target rate at 0.5 percent last week.Federal Reserve Chairman Ben S. Bernanke said yesterday mortgage delinquencies will weigh on the economy, adding to speculation policy makers will cut borrowing costs.
Crude oil rose above $122 a barrel for the first time in New York on threats to supply in Nigeria and Iraq and growing global fuel consumption.
The euro earlier rose against the dollar on a European Union report showing producer-price inflation accelerated more than forecast in March, increasing pressure on the European Central Bank to keep interest rates on hold.EUR/USD recovered from $1.5450 on stronger than expected eurozone PMI data back to $1.5500. Bids on $1.5455/45 dragged the euro down to $1.5520
GBP/USD recovered off post CIPS release lows of $1.9635 and extended gains to the offers zone between $1.9771.
USD/JPY fell from Y105.12 to Y104.40 and then – to Y104.00.

Today there are a lot of economic releases. In Europe the schedule includes UK industrial production and EU retail sales.
Among US data the Q1 productivity and labor costs figures come at 12:30 GMT.

Resistance 3: Y106.60
Resistance 2: Y106.30
Resistance 1: Y105.70
Current price: Y105.04
Support 1: Y104.00
Support 2: Y103.20
Support 3: Y102.60
Comments: Dollar rebounds with resistance is around Friday’s highs on Y105.70. Above there is a room for a rise up to Y106.30, then – to Y106.60.
Support near yesyerday’s low on Y104.00, then – at Y103.20 with a break under will widen losses to Apr 22-23 lows around Y102.60/70.

Resistance 3: Chf1.0730
Resistance 2: Chf1.0670
Resistance 1: Chf1.0600
Current price: Chf1.0546
Support 1: Chf1.0420
Support 2: Chf1.0360
Support 3: Chf1.0330
Comments: Dollar continues to recover after testing support at Chf1.0420 yesterday. Techs is steady. Strong resistance comes at Friday’s highs on Chf1.0600. Below there is a risk of sliding to Chf1.0360 and then – to Apr 30 lows on Chf1.0330. Strong resistance comes at Chf1.0600. Above the target comes at Chf1.0670 and Chf1.0730 (Feb 01 high).

Resistance 3: $1.9960
Resistance 2: $1.9900
Resistance 1: $1.9770
Current price: $1.9688
Support 1: $1.9680
Support 2: $1.9650
Support 3: $1.9610
Comments: Cable is under pressure again. Support comes at session’s low on $1.9680, with a break under widens the correction to $1.9660 and $1.9610/20. Resistance comes near yesterday’s high on $1.9770. Stronger level is around Friday’s high on $1.9900, then – Apr 28 highs on $1.9960.

Resistance 3:$1.5780
Resistance 2: $1.5640
Resistance 1: $1.5590
Current price: $1.5499
Support 1: $1.5480
Support 2: $1.5360
Support 3: $1.5280
Comments: Euro retreated from yesterday’s high on $1.5590 (resistance) and continues to hold under pressure. Support is around $1.5480, stronger – on $1.5280. Break above $1.5590 will point to last week’s highs on $1.5640 and then – to $1.5780.

High Low Close
EUR/USD 1.5592 1.5452 1.5529
USD/JPY 105.12 104.01 104.72
GBP/USD 1.9771 1.9635 1.9732
USD/CHF 1.0549 1.0426 1.0516

EUR/JPY 162.76 161.97 162.64
EUR/GBP 0.7887 0.7843 0.7882
GBP/JPY 207.17 205.52 206.64
GBP/CHF 2.0791 2.0601 2.0751

Change % Change Last
Nikkei 0.00 0.00% 14,049.26
FTSE 100 -0.30 0.00% 6,215.20
CAC 40 -22.44 -0.44% 5,040.92
Xetra Dax -34.98 -0.50% 7,017.10
DOW +51.29 +0.40% 13,020.83
NASDAQ +19.19 +0.78% 2,483.31
S&P 500 +10.76 +0.76% 1,418.25
10yr Note +0.4800 +0.125% 3.893%
NYMEX Crude Oil +1.87 +1.56% 121.84
Gold +3.60 +0.41% 877.70

08:30 UK Industrial production (March) - 0.3%
08:30 UK Industrial production (March) Y/Y - 1.3%
08:30 UK Manufacturing output (March) - 0.4%
08:30 UK Manufacturing output (March) Y/Y - 1.9%
09:00 EU(15) Retail sales (March) adjusted - -0.5%
09:00 EU(15) Retail sales (March) adjusted Y/Y - -0.2%
10:00 Germany Manufacturing orders (March) adjusted - -0.5%
10:00 Germany Manufacturing orders (March) adjusted Y/Y - 5.4%
10:00 Germany Manufacturing orders (March) unadjusted Y/Y - 9.0%
12:30 USA Productivity (Q1) 1.3% 1.9%
12:30 USA Unit labour cost (Q1) - 2.6%
19:00 USA Consumer credit (March), bln +6.2 +5.2