The New York equities markets were up at midday on Friday and looked ready to close the week out with gains as well. The Dow Jones Industrial Average was 0.4 percent higher to 12,466.99, a gain of 1.3 percent on the week. Earlier in the session, the Dow was as high as 12,486.30, a new high. The Nasdaq Composite had added 0.5 percent so far on the day, to 2,466.12, a gain of 1.2 percent on the week. Meanwhile, the S&P 500 was up 0.3 percent to 1,430.11, 1.4 percent higher this week.

Airlines saw gains during the week. United Air Lines and Continental Airlines both gained share value on the news that United is talking to Continental about a merger. United added 4.8 percent to $45, while Continental gained 7.1 percent to $44.96. Meanwhile, Midwest Airlines was 27.8 percent higher to $11.82 after rejecting an offer from AirTran Holdings.

In the semiconductors sector, Advanced Micro Devices added 6.7 percent to $22.34 after it said that it expected demand to rise by 10 percent next year.

Microsoft added 2.4 percent to $30.12, the first time its share price rose above $30.12 since November 2004. Elsewhere in the software sector, Adobe added 10.3 percent during the week to $42.89 on a fourth-quarter report that was better than had been expected.

Losers included Best Buy, which dropped 4.8 percent to $50.60 on a downgrade from Prudential Securities.

Some securities brokers also saw declines. Lehman Brothers dropped 1.4 percent to $75.98 and Goldman Sachs fell 1.8 percent to $201.32. The sector was mixed, however, with Bear Stearns adding 2.6 percent to $1.63.

The FTSE 100 closed at its highest level in nearly six years on Friday, ending at 6,260, a gain of 0.5 percent on the day and 1.7 percent higher than it began the week. The FTSE 250 added 0.3 percent on the day to close at a record high of 11,086, a gain of 1.1 percent on the week.

Defense aerospace company BAE Systems saw a gain of 6.9 percent to 424½p after the Serious Fraud Office ended an investigation into Al Yamamah arms deals with Saudi Arabia. The probe, which lasted for two years, was responsible for a delay in the signing of a Saudi order for Eurofighters.

Prudential was 2.1 percent higher to 710½p after rumors that it will free up nearly £10 billion in its orphan estate that is no longer needed to meet obligations and return some of that money to shareholders.

In the telecommunications sector BT Group added 3.3 percent to 315p, its highest share price since September 2001.

British Land gained 2 percent, to £16.62 on talk that an overseas billionaire is looking to buy.

Reckitt Benckiser was 1.6 percent higher to £24.11 after UBS upgraded the household goods group to “buy”, citing growth potential in 2007.

Among losers on the day, Cairn Energy dropped 1.6 percent to £19.14 on rumors that the IPO of Cairn India was not as successful as had been hoped and that shares would be priced at the low end of the stated range.

The FTSE Eurofirst 300 closed Friday at its highest level in five and a half years, adding 0.6 percent on the session and 2.8 percent higher on the week at 1,489.09. The Eurofirst has gone up 16.7 percent since the beginning of the year.

Banks were big gainers during the week. Nordea added 6.3 percent to SKr106.2 when Sampo of Finalnd was reported to have added to its stake in Swedish bank. Sampo gained 4.2 percent during the week to €20.38. ING was 6.8 percent higher to €33.68 and ABN Amro was up 7 percent to €24.30 on rumors that the two are in talks over a bid from ING.

Meanwhile, Raiffeisen International added 9.1 percent over the week on investor enthusiasm about its presence in central and eastern European markets. Citigroup began coverage of the Austrian bank with a “buy” recommendation, citing the potential value of Raiffeisen’s holdings in Russia and the Ukraine.

The retail sector saw gains, as well. Inditex, owner of the Zara fashion chain, gained 8 percent to €41.70 on the week on better than expected results in the third quarter. Ahold was 9.7 percent higher to €8.25 on rumors of a coming bid from private equity group KKR and on positive comments from UBS.

After a new Tankan report on business sentiment from the Bank of Japan came out about as expected, the Tokyo equities markets were up on Friday. The Nikkei 225 added 0.5 percent to 16,914.31, while the Topix index gained 0.3 percent to 1,657.40. Even though the Tankan figures were seen as positive, analysts are still convinced that the Bank will decline to raise interest rates when it meets next week.

In the tobacco sector, Japan Tobacco was 3.1 percent higher to ¥597,000 after it said it is talking to UK company Gallaher about a purchase.

The electronics sector added 0.5 percent as a whole, and Sony gained 1.6 percent to ¥5,050.

Domestically, the retail sector was up 0.4 percent, while Japan’s largest retailer, Aeon, was 1 percent higher to ¥2,575.

The securities sector also saw gains. Nomura Holdings added 1.2 percent to ¥2,165, while Daiwa Securities Group was up 1.4 percent to ¥1,336.

Transport sectors were driven lower by an increase in crude oil prices. Domestic airline All Nippon Airways dropped 0.9 percent to ¥433. Among shippers, Mitsui OSK was 0.5 percent lower to ¥1,110 and Nippon Yusen fell 1.1 percent to ¥847.

The rise in oil prices was good news for Inpex, however, which added 2.1 percent on the session to ¥1,010,000.

The New York equities markets were higher at noon on Thursday as the Dow Jones Industrial Average hit a new record high at one point in morning trade. The Dow dropped back a bit but was still 0.5 percent higher to 12,394.25 at midday. Meanwhile, the Nasdaq Composite was up 1 percent to 2,456.69 and the S&P 500 had gained 0.6 percent to 1,422.32. The gains came as Citigroup set new targets for the Dow and the S&P at 14,000 and 1,600 respectively for 2007.

The securities sector was higher on good earnings news. Lehman Brothers said that its earnings were at $1.72 per share, higher than the expected $1.68 per share. The announcement sent the broker’s shares up 0.2 percent to $76.55. Bear Stearns was 1.7 percent higher to $158.56 on fourth quarter earnings of $4 per share, well above the $3.36 per share that had been expected.

Earnings news also helped Costco. The wholesale retailer said that its earnings were at 51 cents per share in its fiscal first quarter, a penny better than the predicted 50 cents per share. Costco shares gained 2.2 percent to trade at $54.29.

Losers on the day included defense communications systems contractor Argon ST, which dropped 7.4 percent to $19.81 after it said that its fourth quarter profits had fallen by 32 percent.

The FTSE Eurofirst 300 ended the day at a five-year high as it closed 0.6 percent higher to 1,480.76. The gains came as analysts at Standard & Poor’s said that the active year in mergers and acquisitions could be topped by next year’s activity.

The airlines sector saw gains as investors looked for more consolidation in the sector after the recent record amount paid for the takeover of Qantas of Australia. Iberia was up 1.1 percent to €2.81, while Lufthansa added 1.3 percent to €20.87 and SAS gained 1.4 percent to SKr108.00.

In the pharmaceuticals sector, Novo Nordisk added 2.5 percent to DKr468 on an upgrade from “hold” to “buy” from Citigroup. The broker also raised Novo’s target share price from DKr445 to DKr525, citing the positioning of the drug maker and healthcare group to capture more business as more and more people become diabetic. It also said that Novo’s growth potential from its anti-obesity drug had not yet been priced into to its share value.

Also in the healthcare sector, Nestle and Novartis both benefited from Nestle’s agreement to purchase Novartis’ medical nutrition unit for $2.5 billion. The deal was said to position Nestle second only to Numico in providing special foods for patients. Nestle added 1.5 percent on the news, to SFr436, while Novartis gained 1.8 percent to SFr71.35 and Numico was up 2.9 percent to €40.13.

In the automobile manufacturing sector, Porsche was 2 percent higher to €955.00 when HVB increased its target share price from €995 to €1,104. Meanwhile, Volkswagen was 0.2 percent lower to €84.00.

Export-related stocks were higher on Thursday in Tokyo as the yen continued to stay weak and as new data was released in the United States that showed retail sales rose 1 percent in November. The Nikkei 225 was 0.8 percent higher to 16,829.20, its highest close in seven months, while the Topix index also ended with a gain of 0.8 percent, to 1,651.85. Meanwhile, the Mothers index of small and mid-caps gained 1.7 percent to close at 1,144.42.

The gains in US sales helped the electronics sector. While Pioneer dropped 1.8 percent to ¥1,633 on a downgrade from “buy” to “neutral” from Nomura Securities, others in the sector benefited from the new sales numbers. Matsushita Electric Industrial was 0.6 percent higher to ¥3,345. Canon gained 1.7 percent to ¥6,650. Sony added 1.8 percent, helped along by its insistence that it would meet its target of shipping 3 million PlayStation 3 game consoles globally by the end of the month and that 6 million units will be shipped by the end of March.

In the tobacco sector, no news was not necessarily good news for investors. There was nothing new on a possible bid by Japan Tobacco for UK tobacco company Gallaher. This lack of fresh information sent Japan Tobacco 2.4 percent lower to ¥579,000 just a day after reaching its highest share price ever.

Wall Street was slightly higher at mid-session on Wednesday. The Dow Jones Industrial Average had added 0.1 percent to 12,329.28 but was well down from the new record high of 12,368.61 it reached earlier in the day. Meanwhile, the Nasdaq Composite was up a bare 0.02 percent to 2,432.03 and the S&P 500 had gained 0.2 percent to 1,414.26. The small and mid-cap Russell 2000 index was 0.08 percent higher to 789.01.

Airlines were higher after United Airlines said that it has opened talks with Continental Airlines concerning the possibility of a merger. United was 4.5 percent higher to $45.54, while Continental gained 5.2 percent to $45.11. Elsewhere, the news that AirTran Holdings’ bid for Midwest Air had been rejected sent Midwest 21.26 percent higher to $11. AirTran added 1.5 percent to $12.53.

The retail sector was mixed. Home Depot added 1.3 percent to $39.22 on the news that it has acquired 12 stores in China. Best Buy and Circuit City both declined, however, after Prudential Securities issued a downgrade on both consumer electronics retailers on worries about the low price of flat-screen televisions. Circuit City dropped 1.4 percent to $23.24, while Best Buy was 1.5 percent lower to $50.51.

Anadarko Petroleum fell 3 percent to $46.19 after Goldman Sachs dropped its rating on the oil company from “buy” to “neutral”.

A broker upgrade helped Apple Computer to a 1.9 percent gain to $87.80. Morgan Stanley kept its recommendation for the computer maker at “overweight”, but upped its target share price from $90 to $110 on the theory that revenues could be increased by the introduction of new products.

European equities markets were higher on Wednesday as the banking sector was mixed but mostly higher. The FTSE Eurofirst 300 closed at 1,471.57, a gain of 0.6 percent and just below a five-year high. In Germany, meanwhile, the Xetra Dax ended the session at 6,520.77, its highest closing level since February 2001.

French publisher Lagardere added 2.5 percent to €59.10 on an upgrade from “neutral” to “buy” from UBS, which said it sees the possibility of growth by the publisher. Elsewhere in France, utility EDF added 4.8 percent to €55.55, a record high share price, on hopes that tariffs will go up soon. EDF’s shares have risen more than 15 percent since the end of November. On the other hand, French airplane engine manufacturer Safran dropped 6 percent to €15.95 after announcing that it was investigating accounting problems in its defense security unit and dropping its full-year operating profit margin target to 4 percent.

Raiffeisen International was 6.1 percent higher to €107.13 on growth potential in central and eastern Europe, where the Austrian bank has extensive holdings. In addition, Citigroup began coverage of Raiffeisen with a “buy” rating and a target share price of €124. Among other Austrian banks, Erste Bank added 0.5 percent to €57.63. Erste also has exposure to eastern Europe.

Elsewhere in the sector, ABN Amro was 3 percent higher to €24.10 on the news that it has completed its purchase of Italian bank Antonveneta. There were also rumors that ING is interested in bidding for ABN, its larger Dutch rival. ING gained 2.2 percent to €33.16.

The Nikkei 225 and the Topix index both saw gains on Wednesday as export-focused stocks were up, but gains were limited by declines in utilities and in the consumer finance sector. The Nikkei added 0.3 percent to 16,692.93, while the Topix gained 0.2 percent to 1,639.19. Meanwhile, the Mothers index of small and mid-cap stocks dropped 1.1 percent to 1,125.85.

In the retail sector, department stores saw gains but weren’t able to lift the sector as a whole. Takashimaya was 1.1 percent higher to ¥1,717, while Isetan ended 1.6 percent higher to ¥2,150. On the other hand, Seven & I dropped 0.6 percent to ¥3,630.

Exporters that saw gains included Canon, which added 1.1 percent to ¥6,540. In the electronics sector, Sony was 1.9 percent higher to ¥4,880. Sharp, however, dropped 1.5 percent to ¥2,040 on the news that it is being investigated for price fixing of liquid crystal displays.

Utilities were down on profit-taking. Tokyo Electric Power fell 0.5 percent to ¥3,720, while Kansai Electric Power and Tohoku Electric Power each dropped 0.7 percent to ¥3,050 and ¥2,895 respectively.

The consumer finance sector declined after parliament passed a bill that will cut the maximum amount of interest the lenders can charger their customers. Takefuji was 1.1 percent lower to ¥4,470, while Aiful fell 1.6 percent to ¥3,610 and Credit Saison dropped 1.9 percent to ¥4,100.

Wall Street was a bit lower at midday on Tuesday as investors waited to see whether or not the US Federal Reserve would leave interest rates at 5.25 percent as expected. The Dow Jones Industrial Average was 0.1 percent lower to 12,315.9, while the Nasdaq Composite had dropped 0.2 percent to 2,437.31 and the S&P 500 remained steady at 1,412.90 in the middle of the trading day.

The Nasdaq Stock Market added 0.5 percent to $36.47 after it made its hostile takeover bid for the London Stock Exchange official by offering $5.3 billion for the exchange. Nasdaq already owns 28.75 percent of the LSE.

Texas Instruments added 0.4 percent to $29.42 after seeing declines overnight after it cut its earnings and sales projections for the fourth quarter. The gains came after JP Morgan upgraded its recommendation on the chipmaker from “neutral” to “overweight”.

In the steel sector, Nucor dropped 8.1 percent to $59.12 after it used low prices and high inventories as its excuse for issuing a fourth-quarter prediction that was below analyst estimates. The decline affected the sector, with US Steel falling 5.2 percent to $73.20.

Best Buy was 5.1 percent lower to $51.19 after it said that its net income was 31 cents per share, lower than the 35 cents per share expected by analysts.

The FTSE Eurofirst 300 added 0.4 percent on Tuesday to close at 1,462.53 as merger rumors continued in the banking sector.

There were gains in the retail sector. Carrefour added 2 percent to €47.22 after Tesco decided to buy the other half of China-based supermarket chain Hymall. The move underscored the value of the French retailer’s interests in that Asian nation. Ahold was 3.9 percent higher to €7.81 on speculation about the Dutch retailer’s restructuring after it agreed to sell part of its interests in the US last month. Some hedge fund investors are urging Ahold to completely divest itself of US holdings.

In the banking sector, Nordea added 6.7 percent to SKr107 after it became known that Sampo of Finland purchased 12.8 million more shares of the bank in November. Bids rumors circulated although some analysts said that Sampo was simply looking for a better position before the Swedish government sells its stake in Nordea. Sampo added 3.1 percent to €20.20 on the speculation, while Svenska Handelsbanken added 0.5 percent to SKr192.50 and SEB gained 2.6 percent to SKr213.00.

Stock exchange operator Deutsche Borse dropped 2.1 percent to €134.22 on a downgrade from “add” to “hold” from West LB, which cited valuation issues as a reason for its move.

In the electronics sector, meanwhile, Philips Electronics was 0.7 percent lower to €27.72 after its joint venture in South Korea, LG.Philips LCD, dropped almost 8 percent after being looked at by authorities concerning allegations of price fixing.

The New York equities markets were slightly higher at midday on Monday ahead of the next meeting of the US Federal Reserve and a new decision on interest rates. The Dow Jones Industrial Average was up 0.1 percent to 12,319.42, while the Nasdaq Composite had added 0.4 percent to 2,446.61 and the S&P 500 had gained 0.2 percent to 1,412.61.

Miners were lower on the session so far. Phelps Dodge dropped 0.3 percent to $123.25 after hedge fund SAC Capital Advisors LLC said they had purchased a stake and that it would oppose the effort by Freeport McMoran to buy the company. Freeport McMoran dropped 0.4 percent to $61.56 on the announcement.

The pharmaceuticals sector was still plagued by bad news from drug trials. Nuvelo was 80 percent lower to $3.92 after it said that clinical trials of two blood thinners it was developing were unsuccessful.

Citigroup was 1.4 percent higher to $52.58 on the news that it is bidding for Egg, Prudential’s internet banking unit.

In the chemicals sector, DuPont added 1.4 percent to $47.57 after it said it had upped its earnings forecast for the year from $2.86 per share to $3.25 per share. It also said it will cut 1,500 positions from its agriculture division.

Among technology companies, Cisco added 1.3 percent to $27.33, near its highest level in a year.

The FTSE Eurofirst 300 was up on Monday on gains in the steel sector as it seemed that there could be a bidding war for Anglo-Dutch steel maker Corus that could translate into wider consolidation in the sector. The Eurofirst was up 0.6 percent to 1,457.09.

The steel sector was not the only one that gained on bids and rumors of bids, however. Among stock exchanges, Deutsche Borse was 3.1 percent higher to €137.10 on a meager hope that Euronext’s tie-up with NYSE Group might not be as firmly settled as had been thought, making room for a bid from the German exchange operator. Euronext added 2.9 percent on the session ahead of a December 19 vote by shareholders on the merger with NYSE.

Bids rumors also helped Continental after General Capital Group would not rule out another bid after a failed attempt to buy the German tire maker earlier in the year. Continental was up 2.6 percent to €89. 69.

With prospects shaping up for a bidding war between CSN of Brazil and Tata of India, Corus added 5.4 percent to €7.80 as analysts said that while the Tata bid is more favorable from an employee point of view, Corus is obligated to act in the interests of its shareholders, who would benefit more from acceptance of the CSN bid. CSN is currently offering 515p per share, while Tata’s bid stands at 500p per share, raised on Sunday from a previous 455p bid. In Mumbai, Tata dropped 6 percent on the increased bid.

Elsewhere in the sector, ThyssenKrupp gained 1.5 percent to €32.13 after its target share price was revised upward by Goldman Sachs. Salzgitter was 1.6 percent higher to €97.22, Mittal Steel added 2.5 percent to €32.80, and Acerinox of Spain was up 2.7 percent to €21.77.

The Tokyo equities markets saw gains on Monday, despite investor caution ahead of a decision on US interest rates by the US Federal Reserve and the release of the latest Tankan survey from the Bank of Japan, both due soon. Also limiting gains was a significant decline in the consumer finance sector. The Nikkei 225 and the Topix index each added 0.7 percent on the session, to 16,527.99 and 1,627.97 respectively.

The consumer finance sector’s declines came after UBS forecast that lending would be down b y 30 percent in the next three years. Aiful dropped 3.4 percent to ¥3,660, while Takefuji fell 4 percent to ¥4,530 and Acom was 6 percent lower to ¥4,260.

In the tobacco sector, Japan Tobacco added 2.9 percent to ¥566,000, the third session of gains in a row for the company, as talk continued concerning its bid for UK tobacco company Gallaher.

Consolidator rumors sent the steel sector higher on the session even though some analysts see a successful hostile takeover of any Japanese steel company as only a slight possibility. Kobe Steel added 2.3 percent to ¥402, while Sumitomo Metal Industries gained 3.2 percent to ¥482. JFE was 3.8 percent higher to ¥5,720 and Nippon Steel was up 4 percent to ¥570.

The automobile manufacturing sector saw gains on a weakening yen. Toyota gained 1.4 percent to ¥7,140, while Honda Motor added 1.7 percent to ¥4,140.

Meanwhile the Osaka-listed games company Nintendo added 3.5 percent to ¥28,650 on data showing that sales of its Wii video game console are booming in the US.

Wall Street was up at midday on Friday and seemed headed for gains on the week as well. The Dow Jones Industrial Average was 0.3 percent higher on the session so far and up 1 percent on the week to 12,315.34, while the Nasdaq Composite had added 0.6 percent on the session and 1.2 percent for the week to 2,442.48 and the S&P 500 was up 0.3 percent on the day and 1.1 percent on the week to 1,411.46, its highest level since late in 2001.

Ford dropped 11.7 percent on the week to $7.10 on fears that the convertible bonds it sold this week could dilute the value of existing shares some time in the future.

The pharmaceuticals sector was active over the week, with mixed outcomes based largely on the results of drug trials. Pfizer dropped 9.8 percent to $25.13 after it halted development of a cholesterol drug due to harmful side effects. Auxillium Pharmaceuticals fell 13.8 percent to $14.35 after it stopped a clinical trial in its late stages, and Onyx Pharmaceuticals was 29.5 percent lower to $12.34 after a kidney cancer drug proved ineffective in treating advanced skin cancer.

On the other hand, Vanda Pharmaceuticals added 70.6 percent to $25.75 after a new schizophrenia drug proved to be effective in trials. Likewise, Halozyme Therapeutics gained 119 percent to $6.24 on an agreement to do research in tandem with Roche.

Both the FTSE 100 and the FTSE 250 ended the session and the week higher in London on Friday. The 100 added 0.3 percent on the session, for its fifth gain in a row, and gained 2.2 percent on the week when it closed at 6,152.4. The 250 was up 0.5 percent on Friday and added 2.3 percent for the week to close at an all-time high of 10,944.

Premier Oil added 3.3 percent on Friday to €12.45 on an upgrade to “buy” from UBS despite having declined 10.5 percent on Thursday after bids talks were ended. Other gainers included chemicals group ICI, which added 2.4 percent to 426p on continuing rumors that Akzo Nobel is interested. Corus was 0.6 percent higher to 500p on speculation that a bid from CSN of Brazil is imminent. EMI gained 3.2 percent to 295¾p on talk that it could soon receive an offer from a private equity group.

There were declines on the day, as well. Tobacco company Gallaher, up recently on bids rumors, dropped 1.5 percent to £11.72 after UBS said it thinks that the bid, said to be coming from Japan Tobacco, will be £11.50 per share at the highest.

The mining sector was down after Merrill Lynch cut the entire sector to “neutral”, using as its pretext questions about the prices of base metals. Rio Tinto dropped 1.8 percent to £27.54, while BHP Billiton fell 2.8 percent to 945p. Kazakhmys was 3 percent lower to £11.60, Xstrata declined 3.2 percent to £23.37, and Antofagasta dropped 4.2 percent to 517½p.

The FTSE Eurofirst 300 ended the day and the week higher on Friday, closing at 1,449.14. The Eurofirst added 0.1 percent on the session and 2 percent higher for the week.

In the pharmaceuticals sector, bids news sent both Schwarz Pharma of German and UCB of Belgium higher when the Schwarz family accepted a €4.4 billion offer, including both cash and shares, for the company in which they hold a 59.2 percent stake. Schwarz added 4.7 percent during the week to €95.99, while UCB was 9.2 percent highr to €52.25.

Bids news also brought gains to the tobacco sector after UK company Gallaher said it had received an offer which many think came from Japan Tobacco. Despite a decline on Friday after a downgrade from Cazenove, Gallaher was 24.2 percent higher over the week to £11.72. With investors hoping for more consolidation in the sector, French-Spanish tobacco group Altadis ended the week with a gain of 8.8 percent to €40.5.

Banks also had a good week. Irish banks were led higher by Anglo Irish Bank after it said that its pre-tax profits were better than had been expected and after UBS upped its target share price. Anglo Irish added 8.4 percent to €15.44, while Allied Irish Banks added 3.8 percent over the week to €21.49 even after it didn’t raise its growth guidance. Bank of Ireland, meanwhile, was 3.7 percent higher to €16.65.

Austrian banks also did well. Erste Bank added 4.2 percent to €57.78 after ING initiated coverage with a “buy” recommendation. Raiffeisen International was 6.8 percent higher to €99.90. Both banks do substantial business in eastern Europe.

Equities markets in Tokyo were lower on Friday after new data showed that core machinery orders in the private sector were lower than had been anticipated. The Nikkei 225 dropped 0.3 percent to 16,417.82, while the Topix index was 0.4 percent lower to 1,616.34

Reacting to the new figures on orders, camera-maker Nikon fell 1.6 percent to ¥2,460.

In the electronics sector, Sanyo was 3 percent lower to ¥159 as analysts said that it has dragged its feet in restructuring efforts after issuing a warning of profits last month. Sanyo was not helped by a recall of handsets by NTT DoCoMo due to faults in batteries manufactured by Sanyo. NTT was also lower, falling 1.7 percent to ¥177,000.

Domestically-focused sectors also saw declines. Among retailers, Seven & I Holdings was down 1.3 percent to ¥3,670. Meanwhile, Mizuho Financial Group dropped 0.6 percent to ¥828,000.

The tobacco sector saw gains after the news that UK cigarette manufacturer Gallaher said that it has received an approach. Japan Tobacco added 4 percent in a second day of gains to close at ¥550,000.

The New York equities markets were mixed at midday on Thursday ahead of new employment numbers, due Friday. The Dow Jones Industrial Average was 0.02 percent higher to 12,311.41, but the Nasdaq Composite had fallen 0.3 percent to 2,439.48 and the S&P 500 was down 0.04 percent to 1,412.33.

In the software sector, Oracle dropped another 2.3 percent to $17.47. The software maker was 5.2 percent lower on Wednesday on a “sell” recommendation from Lehman Brothers.

Among automobile manufacturers, Ford fell 1.6 percent to $7.24 on the sale of 30-year convertible bonds that could eventually become equity and dilute shareholder value.

Eli Lilly dropped 1.3 percent to $54.16 on a statement that its shares should earn $3.25 to $3.35 per share in 2007, lower than analysts estimates of $3.39 per share. Elsewhere in the sector, Auxillium Pharmaceuticals fell 7.6 percent to $14.74 as the specialty drug maker halted a late-stage clinical trial.

Among retailers, Home Depot was 1.1 percent lower to $39.47 after it announced that a review of stock option grants showed an unrecorded expense of around $200 million.

In the media sector, News Corp added 4.6 percent to $22.73 on a report that it will trade its stake in DirecTV for News Corp shares held by Liberty Media. Liberty gained 2.6 percent to $90.25.