The FTSE100 was down 13.1 points lower to sit back below the 5,800 mark with the FTSE250 up 42.3 points at 9,584.5 and the FTSE Smallcaps 20.8 points higher at 3,525.6. Volume was ok with 1.09 billion shares traded in 153,572 deals.


CMC Markets are forecasting the DJIA to open up 21 points at 11,440, although early trading sentiment was likely to be determined by April CPI data which could fuel inflationary concerns should the headline number come in above the 0.5 pct forecast.


Early optimism gave way to concerns surrounding the impact of higher energy costs on corporate earnings, with Sainsbury under pressure after the group warned energy costs are to rise by £55 million in the second half as it reiterated that trading conditions remain challenging.


Today’s look at individual Stocks:


Sainsbury (the UK's third-largest grocer) posted first-half earnings, which beat market expectations. The group warned that trading environments remain challenging.
Pre-tax profit before exceptional items came in at £267 million, up from £238 million the year before. That was ahead of analysts' expectations of £258 million - £264 million.

Underlying earnings per share were 10.5p, up from 8.3p the year before. The company is proposing a final dividend of 5.85p, up from 5.65p; making a total payment for the year of 10.5p, up from 8.3p. Total sales grew by 5.7% to £16.99 billion. That included a like-for-like sales increase excluding petrol of 3.7%. Total sales rose by 5.8% to £17.317 billion.
Sainsbury's Bank, however, fell into the red, making an operating loss of £10 million, compared with a profit of £17 million the previous year. In a statement accompanying the numbers, Sainsbury warned the market remains challenging but vowed to continue to maintain its competitive position on pricing. Sainsbury's shares were down 10.5p at 336p.


Meanwhile Tesco gained 3p at 322.75p. The stock was helped by press reports that Warren Buffett's Berkshire Hathaway bought 58 million shares in the supermarket for $328.7m.


Carnival was the top faller today, down 141p at 2,185p as it went ex-dividend, and the market continued to mull over yesterday's profit warning from the cruise operator which prompted ABN Amro to downgrade its stance to hold from buy.


Next lost 35p to 1,725p after underlying sales at its high street stores continued to fall, but at a lower rate than earlier in the year. Next Retail's total sales were up 6.4%, while like-for-like sales in the 244 stores unaffected by new openings fell 5.8%, having been down 8.9% in the first seven weeks of the period.


Heavyweight mining issues led gainers, helped by a recovery in metal prices overnight and hopes of further sector consolidation. Xstrata today confirmed it had made a $20 billion bid for the remaining 80% of Falconbridge it does not already own, prompting Merrill Lynch to reiterate its buy stance with a target price of 2,600p.


Antofagasta gained 88p at 2,316p, Xstrata also gained 59p at 2,160p and Anglo American was up 31p at 2,246p.


Land Securities was down 3p at 1,832p, after the property group said it is likely to convert to REIT status. At the same time, it revealed full year adjusted NAV rose to 1,912p versus 1,488p, beating the 1,878p flagged by Merrill Lynch. In response, the broker, who maintained a neutral rating, said the year ahead could see a further underlying uplift of 7%, adding the medium term outlook seems positive.


Broker comment provided a lift for United Utilities, up 11p at 665.5p, as JP Morgan lifted its stance to neutral from underweight on valuation.


The Portfolio:


Vislink (VLK) today remained unchanged or is it just having a rest before climbing higher? The stock is currently at 67.25p

Wolfson (WLF) continues to suffer under pressure from the falling markets and currently stands down 2.63% at 481.75p. The target for this stock remains strong at 600.00p.


The overall condition of the market has improved slightly, however, at this stage it is still wise to be very careful. The Footsieblog now holds more cash than stock until things improve.


Watch out on Friday for something completely different to reach The Footsieblog “Invest my £1000” more tomorrow………