10:20 AM New York – U.S. stocks advanced after industrial production increased at a faster pace and housing starts increased in January. Deere & Co and Whole Foods Market soared on lifting the current year outlook. Walgreen agreed to acquire Duane Reade for $1.1 billion.

U.S. stocks and commodities advanced after housing starts and industrial production increased.

The Dow, S&P 500 and Nasdaq indexes increased nearly 0.2% in the early trading.

Housing permits in January decreased 4.9% from December or 16.9% a year ago month to 621,000. Housing starts in January rose 2.8% from December. Housing completion fell 12.4% from December or plunged 15.3% from a year ago month to 752,000.

Industrial production increased 0.9% in January following 0.7% gain in December according to the latest data from the Federal Reserve Bank.

Manufacturing production rose 1.0% and utility and mining output increased 0.7%. Capacity utilization for total industry increased to 72.6%.

January import price index increased 1.4% on the increase of 0.2% in fuel prices in December. The index for export prices increased 0.8% after rising 0.6% in December and 0.8% in November.

Crude oil increased 17 cents to $77.18 a barrel and gold added $1.20 to $1,121 an ounce. Yields on 10-year Treasuries traded at 3.68% and 30-year bonds at 4.66%.

Stock Movers

Comtex News Network, Inc (CMTX) plunged 54% to 12.5 cents after it reported revenues increased to $1.8 million in the second quarter to $1.8 million and net loss of $126,000 compared to $1.6 million in revenues and a net of $43,000.

Deere & Co. (DE) soared 7% after the farm equipment maker reported higher than expected earnings in the first quarter and raised its annual outlook.

Rick’s Cabaret International, Inc (RICK) dropped 8% after it agreed to acquire VCG Holding Company to form the largest publicly held gentleman’s club chain. The combined company will have 38 clubs and generate annual revenue of $131.2 million.

Rick’s will pay between $2.20 and $3.80 a share and assume certain debts.

Walgreen Co. (WAG) declined 2% after the drug retailer said it will acquire for $1.1 billion New York based Duane Reade Holdings Inc.

Whole Foods Inc (WFMI) soared 9% after it reported higher earnings and sales and lifted adjusted earnings outlook of at least $1.20 a share in the current fiscal year.

Earnings Review

Nabors Industries Limited, the oilfield-services company said fourth quarter revenues fell 43.6% to $834.5 million from $1.48 billion a year ago. Net loss in the quarter was $47.3 million or 17 cents per diluted share compared to net loss of $106.7 million or 38 cents per share a year ago.

Revenues for the fiscal year 2009 fell 32.7% to $3.7 billion from $5.5 billion a year ago. Net loss for the year was $85.5 million or 30 cents per diluted share compared to net income of $475.7 million or $1.65 per share a year ago.

Whole Foods Market, Inc, the natural and organic grocer said first quarter sales rose 7% to $2.64 billion from $2.47 billion a year ago. Net income in the quarter rose 79% to $49.7 million or 32 cents per diluted share compared to net income of $27.8 million or 20 cents per share a year ago.

Comparable same-stores sales increased 3.5%.