U.S. MARKET AVERAGES

Stocks advanced at opening on retreating oil prices and mixed fourth-quarter results. Generally, investors reacted positively to the earnings reports, though major companies like Johnson & Johnson, 3M and DuPont announced lackluster results.

Strong quarterly results were released by Brinker International, Arbitron, Coach Inc as each company posted a quarterly growth above estimates. McDonald’s and Johnson & Johnson released net income rise in line with estimates. 3M reported profit rise, but failed to meet expectations, while DuPont posted profit decline above expectations. Lucent Technologies and Agere Systems were among the companies posting a fourth-quarter net income loss.

McDonald's posted fourth-quarter profit rise of 53% on continuing strong sales at the world's largest restaurant company's U.S. outlets and improving results in Europe.

United Technologies, the maker of Pratt & Whitney engines and Sikorsky aircraft, announced Q4 earnings roseas revenue increased across all divisions.

Johnson & Johnson, health care conglomerate, posted a profit that beat results from last year, but an unexpected fall in quarterly revenue as sales for the quarter dipped slightly.

3M, which makes Post-It notes, said its Q4 profit rose 6% as strong results from its industrial and electronics businesses helped boost sales.

Key technology sectors advanced in early going,providing a boost to the equity markets. The semiconductor sector gained 1.7% and the computer hardware sector posted a gain of about 1.6%. Transportation stocks also moved higher, helped by strength in airline and trucking stocks. The Dow Jones Transportation Average climbed nearly 1.4%.

Energy stocks were among the notable movers to the downside in the early going, reflecting profit taking. The networking sector was another conspicuous decliner, dragged by disappointing earnings from ADTRAN (ADTN: chart).

The Dow Jones industrial average was up 26.26 points, or 0.25%. The Standard & Poor''s 500 Index was up 2.86 points, or 0.23%. The technology-laced Nasdaq Composite Index was up 9.65 points, or 0.43%.

Bonds fell, with the yield on the 10-year Treasury note rising to 4.38% from 4.36% late Monday.

MOVERS AND SHAKERS

Lexmark International (LXK: chart) said Q4 net income declined 47% to $82.3 million, or 71 cents a share, after sales dipped 11.6% to $1.37 billion, leading it to cut 825 positions and send 525 more to low-cost countries. The actions will cost $130 million pre-tax and will lead to annual savings of $80 million, including $50 million in 2006. Analysts were looking for Q4 earnings of 50 cents a share. Lexmark's board approved an additional $1 billion stock buyback program. The stock rose 8.1%.

Ariba Inc. (ARBA: chart) reported Q1 net income loss of $3.7 million, or 6 cents a share, compared with a loss of $46.8 million, or 75 cents a share, a year ago. Excluding charges, the company would have reported a profit of $10.2 million, or 14 cents a share. Revenue fell 12% to $76.2 million from $86.9 million. Analysts expected earnings of 7 cents a share on revenue of $76 million. The stock jumped 24.3%.

ArvinMeritor (ARM: chart), car parts maker, reported Q1 earnings of $34 million, or 49 cents a share, up from a year-ago profit of $18 million, or 26 cents a share. On a continuing operations basis, excluding items, the company posted earnings of $11 million, or 16 cents a share with sales flat at $2.1 billion compared to last year. For 2006 the company sees earnings from continuing operations of $1.50 to $1.70 a share on sales from continuing operations of about $8.6 billion. For Q2 it forecast earnings before items of 35 to 40 cents a share on sales of $2.2 billion. The company’s shares rose 13.4%.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks recovered from last-week sharp declines, following a securities probe of the Internet portal Livedoor which sent the Nikkei and the other regional bourses in the negative. Investors recharged with positive expectations and charged back into Asian equities. South Korea’s Kospi led the gainers, surging 2.3%, followed by the Nikkei, up 1.9% at 15,648.89. Taiwan’s Weighted index advanced 1.1%, while Shanghai Composite lost 0.3%.

European stocks traded in a tight range at mid-day, reflecting a lackluster close of U.S. markets overnight and some support provided by telecom giant Vodafone Group and miner BHP Billiton. The German DAX 30 was flat at 0.03%, while the French CAC 40 declined 0.2%, and London’s FTSE 100 slipped 0.1%.

OIL, METALS, CURRENCIES

Crude oil prices eased below $68 after Saudi Arabia offered to pump larger amount of crude oil to cover Nigeria’s outage. However, prices were supported by investor fears of potential shortages. Light sweet crude for March delivery fell 69 cents to $67.41 a barrel. London Brent declined 63 cents to $65.53.