U.S. MARKET AVERAGES

U.S. stocks opened higher on oil prices decline which eased concerns about energy costs heading into the U.S. winter season. Recently the three major averages have given up most of their initial tick up with the Nasdaq and Dow posting only modest gains and the S&P 500 basically flat.

In a comparatively light week of economic news, earnings reports are in the focus. There will be only a few major economic data releases this week and the most significant of them are scheduled for Thursday when the U.S. trade balance, import prices and consumer sentiment survey are due.

Utility stocks are posting modest gains with TXU (TXU: chart) leading the group higher with a gain of more than 5% on guidance released before the opening bell, after a sharp decline last week on its quarterly results.

Transportation stocks are moving to the upside, posting modest gains, and the Dow Jones Transportation Average remains off a peak set last Thursday.

Energy stocks are the worst performers in the early going. The natural gas sector is down by 2.1%. The oil service space is falling by 1.3%. Broker/dealer and disk drive stocks are showing modest losses as well.

El Paso Corp. (EP: chart), natural gas producer, reported a larger third-quarter loss of 55 cents vs. 33 cents a year ago, hurt by a large charge and 30% revenue decrease. Analysts had expected net income of 15 cents per share. Sierra Pacific Resources (SRP: chart) posted Q3 net earnings of 33 cents a share, down from 49 cents a share in the same period a year ago.

Dell Inc. (DELL: chart), the world''s No. 1 personal computer maker, is expected to report results on Thursday, while Cisco Systems (CSCO: chart), the world''s largest maker of Internet equipment, is scheduled to report on Wednesday.

Dutch information and media company VNU said on Monday it is in talks with U.S. health-care data firm IMS Health that could terminate their $7 billion merger deal after a shareholder revolt.

MOVERS AND SHAKERS

The software giant Microsoft (MSFT: chart) has appeared to be the main participant in the talks about the possible sale of a stake in America Online, a Time Warner (TWX: chart) unit, according to The New York Times. Microsoft’s stock added 0.2% and Time Warner’s stock was up 0.6%.

Tivo (TIVO: chart) and Yahoo (YHOO: chart) plan to make an agreement that will connect Yahoo''s online service to TiVo''s set-top boxes, according to The New York Times. Tivo’s stock jumped 13% and Yahoo’s stock gained almost 1%.

The search engine Google (GOOG: chart) is modifying some of its internet services for use on wireless devices. Starting today users of more than 100 types of cell phones can access Google''s map database, according to a Wall Street Journal report. The company’s shares were up about 4%.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks fell across the region on consolidation of last-week gains. The Nikkei declined 0.1% but still held above 14,000 on cautious trading. Among the other regional markets, Hong Kong’s Hang Seng was the biggest loser, down 1.5%, followed by Singapore’s Straits Times, falling by 0.6%, and South Korea’s Kospi, down 0.3%. China’s Shanghai Composite slightly advanced on a tentative agreement between China and U.S, while the Indian market rose 1.7%.

European markets gained at mid-day dealings, supported by deal talk, stronger dollar and falling oil prices. The German DAX 30 added 0.04%, London’s FTSE 100 advanced 0.1%, while the French CAC 40 lost 0.2%.The euro fell to an 18-month low below $1.18.

OIL, METALS, CURRENCIES

Crude oil prices further declined below $60 a barrel on unusually warm weather and easing worries about the winter season heating fuel demand. Light sweet crude December delivery fell 63 cents to $59.95 a barrel. Heating oil lost 3 cents to $1.7630 a gallon. Gasoline fell 2 cents to trade at $1.5835. London Brent dropped 61 cents to $58.64.

Gold traded higher in Europe. In London the precious metal was fixed at $457.03 per troy ounce, up from $456. In Zurich gold rose to $457.28 from $455.85. In Hong Kong gold fell $4 to close at $457.45. Silver opened at $7.48, down from $7.49.

The U.S. dollar traded mixed against its major counterparts. The euro was quoted at $1.1818, down from $1.1921. The dollar bought 117.76 yen, down from 118.24. The British pound traded at $1.7466, down from $1.7510.