U.S. MARKET AVERAGES

U.S. stocks traded in a lackluster fashion, as positive earnings news from Coca-Cola Co. and Walt Disney Co. lifted the Dow Jones industrial average, but broader indexes failed to gain despite falling oil prices. A lowered home sales outlook from home builder Toll Brothers Inc. also weighed on sentiment.

The Coca-Cola Company (KO) reported 28% decline in Q4, hurt by a repatriation charge, but still beat analyst expectations, excluding items.

Disney (DIS), entertainment company, reported a 7% increase in first-quarter profit after the market close on Monday. Disney also announced it expected $2.7 billion deal to sell most of its radio assets to Citadel Broadcasting Corp.

Home builder Toll Brothers Inc. (TOL) reported quarterly profit growth but cut its sales view for 2006. citing a decline in signed contracts and difficulty obtaining building permits.

Cisco Systems Inc. (CSCO) and Fortune Brands Inc (FO) are also expected to give their quarterly reports on Tuesday.

In corporate news, General Motors Corp. (GM) said it is cutting in half its yearly dividend to $1 a share and reducing the salaries of its senior leadership, citing significant losses in North America.

Energy stocks were notable losers in the early going as oil prices declined. The oil service sector rebounded from yesterday's gains to slide by about 2.9%. The housing sector was also weak, dragged lower by a guidance warning from Toll Brothers (TOL).

The HMO sector rose about 1%, regaining most of the losses it recorded during Monday's trading. The biotech and broker/dealer sectors posted modest gains as well.

In the first hour of trading, the Dow rose 19.21, or 0.18%. The Standard & Poor's 500 index rose 0.16, or 0.01%, to 1,265.18, and the Nasdaq composite index rose 4.76, or 0.21%.

Bonds rose, with the yield on the 10-year Treasury note falling to 4.52% from 4.54% late Tuesday.

MOVERS AND SHAKERS

Apple Computer (AAPL) unveiled a 1 gigabyte version of its iPod Nano portable music player priced at $149 and reduced the price of its iPod shuffle player to $69 for the 512 megabyte model, and $99 for the 1 gigabyte model. The company also unveiled a programming agreement with Showtime Networks to sell the shows ‘Sleeper Cell’ and ‘Weeds’ at its iTunes Music Store. The stock gained 1.4%.

Myriad Genetics (MYGN) reported narrower Q2 net loss of $8 million or 22 cents a share from a net loss of $10 million or 33 cents a share last year, citing better performance at its predictive medicine division on 39.3%. Quarterly revenue rose to $27.3 million. Analysts expected a net loss of 32 cents a share on revenue of $27 million. The company’s shares jumped 8.5%.

Under Armour Inc (UARM), athletic products maker, reported Q4 net income rose $7 million or 8 cents a share, up 14% from $6.2 million, or 15 cents a share a year before, beating estimates of 7 cents a share. The earnings per share result was reduced by an increase in outstanding stock. Revenue rose to $87.3 million from $69.6 million. The company projected revenue and earnings growth in the 20% to 25% range for 2006. The stock dropped 17%.

Occidental Petroleum Corp (OXY) posted Q4 earnings jump of 55% amid record-high prices and the highest production output in a single three-month period. The company earned $1.152 billion, or $2.84 a share vs. $742 million, or $1.86 a share in 2004. Production averaged 589,000 barrels of oil equivalent per day, the highest quarterly production rate in Occidental's history. The company’s shares fell 2.1%.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks finished mixed, following a slide on Wall Street Monday, despite easing oil prices. The Nikkei slipped 0.2% with Sumitomo Insurance and tech stock TDK among the decliners. South Korea’s Kospi fell 0.7% on weak bank, automobile and brokerage stocks. India’s Stock Exchange’s 30-share Sensex reached an all-time high of 10066.55 points to close up 1%. Singapore Straits Times advanced 0.3%.

European stocks traded lower at mid-day after gains in the telecom sector failed to offset declines in the oil and gas sectors. The German DAX 30 lost 0.4%, the French CAC 40 slipped 0.3%, and London’s FTSE 100 dropped 0.5% after BP reported disappointing quarterly earnings.

OIL, METALS, CURRENCIES

Crude oil prices declined below $65 a barrel on easing concerns about possible disruptions to the oil supply from Iran. Light sweet crude for March delivery fell 45 cents to $64.66 a barrel. Heating oil lost less than a cent to $1.7587 a gallon, while gasoline only declined 1 cent to $1.6342. Natural gas dropped 17 cents to $7.820 per 1,000 cubic feet. London Brent dropped 44 cents to $62.89.

European gold prices lost ground Tuesday. In London gold traded at the fixed price of $568.25 bid per troy ounce, down from $572.80. In Zurich the precious metal traded at $568.53, down from $573.10. In Hong Kong gold fell 40 cents to close at $569.60. Silver opened at $9.73, down from $9.83.