U.S. MARKET AVERAGES

Stock averages advanced in early trading hours as the Conference Board reported improved consumer confidence in December and as the Treasury yield curve flattened, following an inversion in the previous session. However, rising oil prices narrowed the stocks’ early boost, following Iran''s call for OPEC to consider a production cut.

Crude oil futures rose 74 cents to $58.90 after Iran''s oil minister was quoted as saying the OPEC should consider lowering its output by 1 million barrels a day at its next meeting on Jan. 31.

In economic news, 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. Confidence improved because of declining gasoline prices and better job opportunities.

Technology stocks were among the losers again, posting losses in the Internet, semiconductor and disk drive sectors. Utility stocks showed mild weakness as well. Gold and energy stocks remained strong.

Whole Foods Market (WFMI: chart) jumped to a new 52-week high on news that it will be added to the S&P 500 index. Newmont Mining (NEM: chart) continued its recent advance, extending its peak.

Overstock.com (OSTK: chart), online retailer, continued its Tuesday’s decline on lowered Q4 guidance, moving to a new 52-week low. ExpressJet (XJT: chart) hit a new low with a 27% drop on news that Continental Airlines will withdraw 69 aircraft from the company.

In midday trading, the Dow Jones industrial average rose 22.58, or 0.21%.
Broader stock indicators were nearly unchanged. The Standard & Poor''s 500 index rose 2.13, or 0.17%, and the Nasdaq composite index fell 1.38, or 0.06%.

Bonds fell, with the yield on the 10-year Treasury note rising to 4.35% from 4.34% late Tuesday.

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%.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished mixed Wednesday with the Nikkei sharply rising to hit a five-year closing high of 1.4% at 16,194.61 on expectations that exporter issues will profit on the continuously strengthening U.S. dollar. Across the region, Hong Kong’s Hang Seng fell 0.5%, South Korea’s Kospi declined 0.4%, while Australia’s All Ordinaries advanced 0.6%.

European stocks closed mixed, despite improved optimism in the German economy on upbeat consumer confidence data. The German DAX 30 finished little changed at 0.04%, the French CAC 40 lost 0.3%, while London’s FTSE 100 rose 0.5%, hitting an intraday high.