U.S. MARKET AVERAGES

Following an idle start of Wednesday session, markets resumed the bullish tone and have rallied for the last couple of hours. The three major averages are holding their intraday highs led by the Nasdaq, the biggest gainers of all, currently up 1%. Nine of the ten major sectors are posting gains, providing the market with a broad leadership. Yet, the Consumer Discretionary sector stands out as the most conspicuous mover to the upside with a gain of 1.3%, lifted by Time Warner which posted an 80% income rise and boosted its buyback plan by $7.5 billion. Support was also provided by better-than-expected oil inventory report which said that crude oil inventories rose 2.7 million barrels to 319.1 million barrels.

The Financial sector has risen 0.9% on wide-board buying and strength in American International Group (AIG: chart) and American Express (ATC: chart), advancing despite weakness in the Treasury markets, sending the 10-year note to seven-month highs. Tech sector has advanced 0.8% on strength in semiconductors and hardware stocks and a 7.7% earnings-inspired jump in Electronic Arts' (ERTS: chart).

The housing sector has come off its intraday highs but still shows a gain of more than 2.7%. Semiconductor stocks have advanced through the morning, sending the sector up 2.3%.

Energy stocks are among the best performers of the day, following the release of weekly petroleum inventory report. The oil service sector is leading the group higher, with an advance of 1.8%.

Erasing yesterday’s losses on Dell’s warning, Apple (AAPL: chart) has resumed its upward momentum. The stock is extending its 52-week high with a nearly 4% advance. Earnings-inspired UnumProvident (UNM: chart) has also set a new peak. SanDisk (SNDK: chart), Schlumberger (SLB: chart) and St. Jude Medical (STJ: chart) are other notable gainers reaching fresh highs.

Falling by more than 14% on earnings news, WMS Industries (WMS: chart) has reached a new 52-week nadir. Leadis Technology (LDIS: chart) is also moving to a fresh low.

On the corporate news front, Deutsche Telekom said it won't launch a bid for the British mobile operator O2, clearing the way for Spain''s Telefonica to buy the firm for $31.5 billion.

Time Warner topped forecasts by reporting an 80 percent increase in net profit or 19 cents a share, with revenue up 6% , beating estimates of 17 cents a share. Time Warner also said it was lifting its stock buyback plan by $7.5 billion to $12.5 billion.

MOVERS AND SHAKERS

Media and entertainment giant Time Warner Inc. (TWX: chart) posted profit results that beat expectations, with net income increasing 80% on a 6% rise in revenue. The company also lifted its buyback plan by $7.5 billion. Time Warner’s stock gained 2.1%.

Sun Microsystems Inc. (SUNW: chart) posted sales that fell slightly of analyst forecast. The company’s adjusted quarterly loss of $18 million was in line with the consensus estimate of analysts review by Thomson First Call. Sun Microsystems’s stock dropped 1.6%.

Security software maker Symantec Corp. (SYMC: chart) reported a second-quarter loss, caused by costs related to its acquisition of Veritas Software and a weak sales outlook. The company''s disappointing results were followed by downgrades by financial brokers. Symantec’s stock lost as much as 11.7%.

Knight Ridder Inc. (KRI: chart) was upgraded by Deutsche Bank. The financial broker said the possibility of a sale of the company is high after its biggest investor called on it to put itself up for sale. The sale call came from Private Capital Management, which beneficially owns 19% of the company''s stock. Knight Ridder is likely to be in focus today.

ECONOMIC NEWS

Crude oil inventories advanced in the latest week, according to government data released Wednesday, adding to a recent streak of gains. Stocks of gasoline climbed as well.

The Department of Energy''s Energy Information Administration revealed that crude oil inventories climbed by 2.7 million barrels for the week ended October 28, rising to 319.1 million barrels from the 316.4 million barrels recorded in the previous week. This followed an advance of 4.4 million barrels for the prior week. Oil inventories are 12% higher than their levels of the same time last year.

Gasoline inventories posted a week-over-week gain of 1 million barrels, the government said, adding to the previous week''s advance of 200,000 barrels. Gasoline stocks are now 3.3% below their levels of last year. Inventories of distillate fuel oil fell by 200,000 barrels in the most recent wee

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished broadly higher across the region. The Nikkei hit a four-year high for a second consecutive session, reaching 13,894,78 points. Among the other regional gainers, Singapore’s Straits Times climbed 1.8%, South Korea’s Kospi rose 1.6%, and Hong Kong’s Hang Seng added 0.2%.

European markets finished mostly higher on strength in U.S. markets, gains from Deutsche Telecom and Credit Swisse Group. The German DAX 30 rebounded from earlier losses to close up 0.7%, London’s FTSE 100 advanced 0.3%., but the French CAC declined 0.1%.