U.S. MARKET AVERAGES

U.S. stock markets opened higher Wednesday ahead of data and as the Treasury yield curve flattened, following an inversion in the previous session.

The Conference Board released its repot on consumer confidence for December, showing notable improvement of 103.6 from 98.3 in November, but the reading came in below economist estimates of an increase of 105.0.

The gold sector ticked higher in early trading, rising by 1.8%. Biotech stocks advanced, helped by Affymetrix (AFFX: chart), which will move into the S&P MidCap 400 index Friday. Energy stocks rebounded from Tuesday's decline with the oil service, oil and natural gas sectors are each higher by less than 1%.

Housing stocks posted mild weakness in the early going. The semiconductor sector showed weakness,too.

The Dow Jones industrial average is up 18.65 points, the S&P 500 is ahead 1.85 points and the Nasdaq 100 is down 4.22 points.

Bonds fell, with the yield on the 10-year Treasury note rising to 3.6% from 4.34% late Tuesday. Traders were watching bond yields closely, after the spread between yields of short-term and long-term bonds inverted Tuesday for the first time in five years.

MOVERS AND SHAKERS

Linens N Things Inc. (LIN: chart) said it expects to meet the required conditions for it to be acquired by a company controlled by Apollo Management LP in a deal valued at $1.3 billion. Its shareholders are expected to receive $28 per share in cash. Company’s shares soared 11%.

Foods Market Inc. (WFMI: chart) will be included in Standard & Poor's 500 index. The chain, which is currently part of the S&P MidCap 400 index, will replace credit-card issuer MBNA Corp., which is being acquired by Bank of America Corp., in the S&P 500. The stock rose 5%.

Weatherford International (WFT: chart), maker of mechanical products related to oil and gas drilling and production, announced that its board has authorized up to $1 billion for the repurchase of common stock. Company’s shares advanced 3%.

Albertson''s (ABS: chart) was upgraded at J.P. Morgan to neutral from underweight. The stock rose 1.4%.

Celgene Corp. said the Food and Drug Administration approved its drug Revlimid, announced a stock split and said its chief executive will retire in May. The company said that due to a later-than-expected FDA approval for Revlimid, it now sees 2005 earnings of 36 cents to 38 cents a share. Celgene also declared a 2-for-1 stock split with a record date of Feb. 17. Company’s shares dropped 1.9%.

Chesapeake Energy Corp. (CHK: chart) extended its offer to exchange its 6.5% senior notes due 2017 for any and all of its outstanding 6.5% senior notes due 2017 that were issued on Aug. 16 in a private offering. The offer had been scheduled to expire Dec. 23. The stock declined 4.6%.

Pinnacle Entertainment (PNK: chart) plans to apply for a gaming license in Pennsylvania. The company also entered into an option to buy land in Philadelphia for a proposed casino and entertainment complex. Pinnacle expects phase one of the project would cost between $250 million and $400 million. The stock lost 2.2%.

ECONOMIC NEWS

Wednesday morning, the Conference Board released its repot on consumer confidence in the month of December, showing notable improvement from November. The reading still came in below economist estimates.

The Conference Boars said that its Consumer Confidence Index rose to 103.6 in December from a downwardly revised 98.3 in November. Economists had expected the index to rise to 105.0 in December from the 98.9 originally reported for November.

The report showed that the Present Situation Index rose to 121.5 in December from 113.2 in November while the Expectations Index rose to 91.6 in December from 88.4 in November.

INTERNATIONAL MARKET NEWS