Credit Suisse downgraded General Electric GE from Outperform to Neutral.
JP Morgan downgraded Total S.A. TOT from Overweight to Neutral.
Wachovia downgraded BlackRock BLK from Outperform to Mkt Perform.
Bernstein downgraded Hershey Foods HSY from Mkt Perform to Underperform.

DA Davidson upgraded AmericanWest Banc AWBC from Neutral to Buy.
Credit Suisse upgraded Delta Air Lines DAL from Neutral to Outperform.
JP Morgan upgraded Diamond Offshore DO from Neutral to Overweight.
JP Morgan upgraded BP BP from Neutral to Overweight.

BlackRock Inc was cut to "neutral" from "buy"' by Goldman Sachs.

Delta Air Lines Inc agreed in principle on a contract that would clear the way for a merger with Northwest Airlines (NWA).

Genentech Inc said first-quarter profit rose 12% while demand for its top-selling product, the cancer medicine Avastin, didn't climb as fast as analysts expected.

General Electric Company reported an unexpected 5.8% decline in net income.

Trizetto Group Inc agreed to be bought for $1.4B by funds advised by Apax Partners.

Economists at Goldman say consumer confidence declines yet further, to the lowest level since 1982. At this low of a level it tough to see it as consistent with anything but a recession. This level of confidence is consistent with outright declines in consumer spending.

The yen and Swiss franc rose against all of the major currencies as General Electric Co.'s first quarterly decline in profit since 2003 encouraged investors to reduce holdings of higher-yielding assets. This week the yen has risen 0.5% against the dollar and is down 0.1% versus the euro.
The dollar fell to within a cent of the record low against the euro on speculation Group of Seven finance chiefs are unlikely to agree on a plan to support the U.S. currency.
The pound fell to a record against the euro for a fourth day on bets the Bank of England will keep cutting interest rates as the U.K. economy slows.
The euro extended its advance versus the dollar after ECB council member Axel Weber, in Washington for the G-7 conference, said at a press briefing that there's no room to lower interest rates in Europe. The currency pared gains a little later after German Finance Minister Peer Steinbrueck, also in Washington, said the euro's gain has a ``massive impact'' on exports.
The G-7, which comprises the U.S., Japan, Germany, the U.K., France, Italy and Canada, hasn't intervened in currency markets since it supported the euro in 2000. The dollar remained lower against the euro today after a report showed confidence among U.S. consumers sank to a 26-year low this month. The Reuters/University of Michigan preliminary index of consumer sentiment decreased to 63.2, less than forecast, from 69.5 in March. The measure is the lowest reading since March 1982.
The U.S. currency is down 0.6% against the euro this week after touching the all-time low of $1.5913 yesterday.
The pound fell 1.6% against the euro this week on bets the Bank of England will keep cutting interest rates while the European Central bank holds its lending target at a six-year high. Policy makers in the U.K. lowered the lending target by a quarter-percentage point to 5% yesterday, while the ECB kept its rate at 4%.

EUR/USD trades near $1.5800, lifting back over the figure from trade around $1.5780. Traders also note reports of a minor incident in the Persian Gulf involving US and Iranian warship, said to have rattled nerves.

“There's no consensus among the major G-7 countries,” said George Magnus, senior economist adviser at UBS AG. “The Americans are actually very happy about the weak dollar because it deflects some of the problems they have in the domestic economy.”

USD/JPY holds Y100.90 area as the European session winds down, US stocks still holding losses and feeding a yen positive tone. But markets are pretty quiet too, amid general pre-weekend uncertainty that is exacerbated by the G7 meeting. Bids remain down near session low on Y100/60 and at the Thursday lows on Y100.00.

Stocks tumbled Friday after General Electric's earnings miss amped up worries about how badly the economic slowdown will hurt corporate profits. A steep drop in a key consumer sentiment index added to the early negative tone.
Stocks rallied Thursday amid an upgrade of Intel, lower oil prices and improved earnings forecasts from Dow components Wal-Mart and DuPont.
But GE dragged on Wall Street Friday, with its stock falling more than 11%.
GE after it reported lower first-quarter sales and earnings that missed estimates. The company, a Dow component, also cut its second-quarter and full-year 2008 profit forecast.
Additionally, investors reacted to the University of Michigan's preliminary report on April consumer sentiment. The index fell to 63.2 from 69.5, the worst result since March 1982, according to reports.
Other company news. Washington Mutual shares lost 3% in active trade Friday after a Goldman Sachs analyst said the mortgage lender could see an additional $14 billion in loan losses this year.
American Airlines canceled an additional 595 flights, or 25% of its schedule, Friday, stranding thousands of passengers. American has canceled about 3,100 flights this week due to safety concerns. AMR stock lost about 2%.
U.S. light crude oil for May delivery fell 41 cents to $109.70 a barrel.

EUR/USD continues to hold within the narrow range, limited by $1.5800/50. Offers around session high with stops on the break of $1.5870.

TJ Marta of RBC Capital Markets notes that “the March U of Mich confidence reading was the worst since 1982. The components were no less dismal. The economic conditions component (fell to 78.4 from 84.2) was also the worst since 1982 too.”

"It's going to be generally a dollar-weakening environment,'' John Horner, a currency strategist in Sydney for Deutsche Bank AG, the world-largest currency trader, said in an interview with Bloomberg Television. Policy makers at the G-7 won't ``argue for a stronger dollar,'' he said, forecasting the dollar may fall beyond $1.60 a euro in coming weeks.

Current conditions 78.4 vs 84.2,
future expectations 53.4 vs 60.1.
One-year inflation expectations 4.8%, 5-year 3.1%.

EUR/USD $1.5950, $1.6000, $1.5750
USD/JPY Y99.00
AUD/USD $0.9200
USD/CAD C$1.0190, C$1.0210, C$1.0125, C$1.0090

No need for monetary or fiscal stimulus in EU. EU economic fundamentals robust. No decoupling, but Europe now more resilient. Mkt tensions ongoing, must monitor very closely.

Stocks were set to tumble at Friday's open as corporate bellwether General Electric posted disappointing results that raised new worries about problems in the nation's financial sector.
GE, which rarely posts results far from forecasts, earned only 44 cents a share from continuing operations, well below the 51 cents a share forecast by analysts surveyed by earnings tracker Thomson First Call.
In other corporate news, the pilots union at Delta Air Lines agreed to contract revisions that could clear the way for the No. 3 airline's merger with Northwest Airlines (NWAC), a combination that has been widely anticipated since January. But there is also trouble in the airline industry. AMR unit American Airlines, the world's largest airline, canceled another 570 flights Friday as it tries to complete inspections of its MD-80 aircraft ordered by federal safety regulators.
And Denver-based low-fare carrier Frontier Airlines Holdings (FRNT) filed for Chapter 11 bankruptcy protection after it said its principal credit card processor started withholding "significant proceeds" received from the sale of Frontier tickets.
Retailer Linens 'n Things, the No. 2 home-furnishing store after Bed Bath & Beyond, could soon be the latest victim of the downturn in housing. The Wall Street Journal reported the privately held chain is set to file for Chapter 11 bankruptcy-court protection by Tuesday.
Biotechnology giant Genentech (DNA) reported improved first-quarter profit after the closing bell Thursday, although sales of its top-selling cancer drug disappointed Wall Street analysts.

Futures nursing losses across the board in the wake of disappointing GE earings and a downgrade to '08 forecasts. Dow futures down about 114 points now and Nasdaq futures down 15. Stock futures had been in the black ahead of the earnings release from GE. GE shares down about $4 at $33 in current trading.

The dollar fell against the euro on speculation officials from the Group of Seven nations are unlikely to agree on a plan to support the U.S. currency when they meet today.
The currency weakened against the British pound today before an industry report that will probably show U.S. consumer confidence fell to a 16-year low.
The yen pared earlier declines against the dollar on speculation increased risk appetite will be short-lived as credit losses widen, discouraging demand for higher-yielding assets financed with Japanese loans, so-called carry trades. Mizuho posted a 50 percent drop in full-year profit today after losing $5.5 billion mortgage securities, the most reported by an Asian company.

EUR/USD: Another round of buying in late Asia/early Europe was able to take rate through the earlier highs and onto $1.5787 before a brief period of consolidation. The bid tone soon returned however, leading euro-dollar back above $1.5800. Russian demand was also noted as the rate pushed on to highs at $1.5850 before easing back to end the morning back around $1.5800, recovering to $1.5820 in early US trade.Stops $1.5880, strong offers $1.5900/15, stops $1.5920, bids $1.5780
GBP/USD: Opened early Europe at $1.9742. Cable extended recovery to $1.9769, while euro-sterling pushed to fresh life highs of stg0.80345 on a late morning order driven move.
USD/JPY: European dealing opened with dollar-yen trading back around Y101.90,and with the greenback coming under pressure versus the euro, dollar-yen also eased back, initially making lows for the day at Y101.54. Early US news of GE results undershooting forecasts then knocked dollar-yen down to Y101.10, with euro-yen shedding 100-points to Y160.20.US data starts at 1230GMT with the import/export price index for March, followed at 1400GMT by the Reuters/University of Michigan Consumer Sentiment Index, which is expected to hold around 69.0 in mid-April. Consumers remain very concerned about a variety of economic ailments.

European equity bourses have reversed earlier gains and in negative territory following disappointing General Electric earning results. CAC-40 is down 31pts (-0.64%), FTSE-100 is down 50pts (-0.84%) and Xetra-DAX is down 83pts (-1.2%).

The dollar fell against the euro on speculation officials from the Group of Seven nations are unlikely to agree on a plan to support the U.S. currency when they meet today.
The currency weakened against the British pound today before an industry report that will probably show U.S. consumer confidence fell to a 16-year low. The yen headed for a weekly loss against the euro as a rally in Asian stocks prompted investors to buy higher-yielding assets with loans from Japan.
``The dollar remains vulnerable to another move to the downside,'' Ian Stannard, a currency strategist at BNP Paribas SA in London who says the dollar may ``test'' $1.60 against the euro in the coming week. ``We're unlikely to see any significant change coming out of the G-7.''
Futures on the Chicago Board of Trade show traders increased bets that the Federal Reserve will lower its benchmark target lending rate by a half-percentage point on April 30 to 42 percent, compared with 36 percent a week ago. The remaining bets were for a quarter-point.
A weaker dollar has made U.S. goods and services more competitive in global markets, supporting growth as the economy risks lapsing into a recession. U.S. exports increased 2 percent to a record $151.4 billion in February, the Commerce Department said yesterday in Washington.
The yen pared earlier declines against the dollar on speculation increased risk appetite will be short-lived as credit losses widen, discouraging demand for higher-yielding assets financed with Japanese loans, so-called carry trades. Mizuho posted a 50 percent drop in full-year profit today after losing $5.5 billion mortgage securities, the most reported by an Asian company.
Investors should buy the euro and sell the pound on speculation the European Central Bank will keep interest rates at a six-year high to curb inflation as the U.K. central bank cuts rates, according to BNP Paribas SA, France's largest bank.
The Bank of England yesterday lowered its benchmark interest rate to 5 percent, the third reduction since December, as the worst housing slump in 16 years threatens to push the economy into a recession.

- Feb OECD stocks down 48.9 mln barrels, reversing Jan rise. March stocks seen up 6.3 mb.
- IEA cuts 2008 global demand forecast 310 kb/d to 87.2 mb/d on weaker economic growth.

Resistance 3: Y103.60

Resistance 2: Y102.80
Resistance 1: Y102.30
Current price: Y101.50
Support 1: Y101.50

Support 2: Y100.00

Support 3: Y99.40

Comments: Dollar drops. The nearest support comes at Y101.50 with a break under will widen losses to yesterday's low at Y100.00 and Y99.40. Back above session high at Y102.30 will resume rebound to to Apr 07-09 high on Y102.80 and higher - to Y103.60.

Resistance 3: Chf1.0215
Resistance 2: Chf1.0170
Resistance 1: Chf1.0100Current price: Chf1.0054

Support 1: Chf1.0000
Support 2: Chf0.9940

Support 3: Chf0.9870

Comments: Dollar rebounds. Strong resistance is around session high on Chf1.0000, then – at Chf1.0100. Key level comes near Chf1.0170 (Apr 09 high). Closest support lies at session low on Chf1.0000 stronger one is at Chf0.9980. Break under will widen losses to Chf0.9940 and then – to Mar 31 lows near Chf0.9870.

Resistance 3: $1.9960

Resistance 2: $1.9840

Resistance 1: $1.9800
Current price: $1.9720
Support 1: $1.9730

Support 2: $1.9650
Support 3: $1.9580

Comments: Cable tests support at $1.9730. Below losses may extend to Apr 09 low on $1.9650. But key level comes at lower bound of the upward trend from Mar 2006 at $1.9580. The nearest resistance comes at $1.9800, then – on $1.9840. Stronger level is on channel line from Mar 14 at $1.9960.

Resistance 3:$1.6000
Resistance 2: $1.5910
Resistance 1: $1.5850
Current price: $1.5811

Support 1: $1.5730
Support 2: $1.5670
Support 3: $1.5540

Comments: Euro rebounds. Above $1.5850 there is a chance of challenging record high at $1.5900/15 again and then – psychological level at $1.6000. Strong support is around session low on $1.5730. Break under will widen losses to Apr 08 low on $1.5670.

European equity bourses are higher on Fridayfollowing 3 consecutive session falls, with FTSE-100 breaking throughthe 6,000 level and CAC-40 above 4,900 level. France Telecom is leading
the charge on the CAC-40 after reports that the French government hasdecided not to issue a fourth 3G licence, and La Tribune report that thtelecom company is considering a share buyback. BP is top gainer on FTSE-100 following broker upgrade by JPMorgan Chase to "overweight" from"neutral". CAC-40 is up 49pts (+1.00%), Xetra-DAX is up 48pts (+0.71%)and FTSE-100 is up 47pts (+0.78%).

Japanese stocks ended Friday's session higher across the board, boosted by hopes for a stronger dollar in the wake of the G7 meeting. The benchmark Nikkei 225 was 378.4 points, or 2.92%, higher at 13323.73. The broader-based TOPIX gained 30.55 points to stand at 1278.62.

The dollar headed for a weekly decline against the euro on speculation officials from the Group of Seven nations are unlikely to agree on a plan to support the U.S. currency when they meet today.

The currency weakened against the British pound today before an industry report that will probably show U.S. consumer confidence fell to a 16-year low. The yen headed for a weekly loss against the euro as a rally in Asian stocks prompted investors to buy higher-yielding assets with loans from Japan.

The Group of Seven meeting is a ``risk event,'' said John McCarthy, director of currency trading at ING Financial Markets LLC in New York. ``People just want to take some money off the table.''

Resistance 3: Y102.70

Resistance 2: Y102.20
Resistance 1: Y101.80
Current price: Y101.90
Support 1: Y100.00

Support 2: Y99.40

Support 3: Y98.50

Comments: The nearest support comes at Y100.00 with a break under will widen losses to Y99.40 and Y98.50. Back above Y101.80 will resume rebound to Y102.20 and then – to Apr 07 high on Y102.70.

Resistance 3: Chf1.0215
Resistance 2: Chf1.0170
Resistance 1: Chf1.0100Current price: Chf1.0078

Support 1: Chf1.0060
Support 2: Chf0.9940

Support 3: Chf0.9870

Comments: Closest support lies at Chf1.0060 stronger one support at Chf0.9980. Break under will widen losses to Chf0.9940 and then – to Mar 31 lows near Chf0.9870. Strong resistance is around session high on Chf1.0000, then – at Chf1.0100. Key level comes near Chf1.0170 (Apr 09 high).

ECB President Trichet offered no new suprises Thursday, saysBenjamin Reitzes of BMO Capital Markets. Reitzes take on Trichet is that "the ECB will remain reluctant to soften its hawkish stance until inflation pulls back from current 16-year highs," but "as the eurozone economy slows through mid-year and inflation retreats, look for the ECBto turn more dovish, eventually moving toward a rate cut in the second half of the year."

* Euro-dollar; $1.5950, $1.6000, $1.5750
* Dollar-yen; Y99.00
* Euro-Swiss; Chf1.5900
* Aussie; $0.9200
* Dollar-Canada; C$1.0190

The June S&P contract was last 3.8 points higher at 1366.5, with the Nasdaq June contract 0.25 points lower at 1863.0.

Resistance 3: $1.9960

Resistance 2: $1.9840

Resistance 1: $1.9800
Current price: $1.9751
Support 1: $1.9730

Support 2: $1.9650
Support 3: $1.9580

Comments: Cable slowly rebounds with median resistance comes at $1.9800, then – on $1.9840. Stronger level is on channel line from Mar 14 at $1.9960. Support comes at session low on $1.9730. Below losses may extend to Apr 09 low on $1.9650. But key level comes at lower bound of the upward trend from Mar 2006 at $1.9580.

Resistance 3:$1.5900
Resistance 2: $1.5860
Resistance 1: $1.5800
Current price: $1.5748

Support 1: $1.5730
Support 2: $1.5670
Support 3: $1.5540

Comments: Euro rebounds after fall fron new record high at $1.5900 (key resistance). Above $1.5800and $1.5860 there is a chance of challenging $1.5900 again and then – psychological level at $1.6000. Strong support is around session low on $1.5730. Break under will widen losses to Apr 08 low on $1.5670.

UK spreadbetter Cantor Index are calling the FTSE up 17, the DAX 32 higher, the CAC up 13 and the Eurostoxx 50 up 15.

The front-month Nymex WTI May 08 contract was last down 51 cents at $109.60, having earlier touched a low at $109.49.

High Low Close

Change% ChangeLast

Nikkei 225 -166.59 -1.3% 12,945.30
Topix -14.83 -1.2% 1,248.07
FTSE 100 -18.80 -0.31% 5,965.10
CAC 40 -15.55 -0.32% 4,859.42
Xetra Dax -17.04 -0.25% 6,704.32
DOW +54.72 +0.44% 12,581.98
NASDAQ +29.58 +1.27% 2,351.70
S&P 500 +6.06 +0.45% 1,360.55
10yr Note +0.6600 +0.190% 3.532%
NYMEX Crude Oil -0.76 -0.69% 110.11
Gold -5.70 -0.61% 931.80

12:30 USA Import prices (March) - 0.2%
12:30 USA Export prices (March) - 0.9%
14:00 USA Michigan sentiment index (April) preliminary 69.0 69.5
G7 meeting begins