U.S. MARKET AVERAGES

U.S stocks started trading in a mixed fashion, but have been rising lately with he Nasdaq being the best performer among the major averages, climbing by nearly 0.5%. Stock markets opened near the flat line as the Federal Reserve's latest interest-rate hike and the benchmark U.S. Treasury note yield near a seven-month high underlined investors' fears about rising rates and weaker consumer spending.

The media sector has been in the spotlight as Time Warner boosted its stock buyback plan and Knight Ridder reacted to a call by its top investor to sell the company. In a comparatively light day of earnings and economic news, the increased banking interest rate by the Fed Reserve is expected to remain in focus.

The semiconductor space is advancing in the early going by 1.1%. The airline sector has advanced in the first half hour, rising 1.4%. The housing sector has climbed by 1.7%, reaching its highest level in about 3 weeks. While the Mortgage Bankers Association revealed another decline in weekly mortgage loan application volume, the sector is receiving some help from Beazer Homes (BZH: chart) on earnings and guidance release.

The software sector is a significant mover to the downside in the early going, sliding by 2.1%.HMO stocks are also posting weakness with Cigna''s (CI: chart) falling 8% on its quarterly results.

On the corporate news front, Deutsche Telekom said it won''t launch a bid for the British mobile operator O2, clearing the way for Spain''s Telefonica to buy the firm for $31.5 billion.

Time Warner topped forecasts by reporting an 80 percent increase in net profit or 19 cents a share, with revenue up 6% , beating estimates of 17 cents a share. Time Warner also said it was lifting its stock buyback plan by $7.5 billion to $12.5 billion.

The Dow Jones industrial average was down 17.29 points, or 0.17%. The Standard & Poor's 500 Index was down 1.60 points, or 0.13%. The Nasdaq Composite Index was down 3.17 points, or 0.15%.

MOVERS AND SHAKERS

Media and entertainment giant Time Warner Inc. (TWX: chart) posted profit results that beat expectations, with net income increasing 80% on a 6% rise in revenue. The company also lifted its buyback plan by $7.5 billion. Time Warner’s stock gained 2.1%.

Sun Microsystems Inc. (SUNW: chart) posted sales that fell slightly of analyst forecast. The company’s adjusted quarterly loss of $18 million was in line with the consensus estimate of analysts review by Thomson First Call. Sun Microsystems’s stock dropped 1.6%.

Security software maker Symantec Corp. (SYMC: chart) reported a second-quarter loss, caused by costs related to its acquisition of Veritas Software and a weak sales outlook. The company''s disappointing results were followed by downgrades by financial brokers. Symantec’s stock lost as much as 11.7%.

Knight Ridder Inc. (KRI: chart) was upgraded by Deutsche Bank. The financial broker said the possibility of a sale of the company is high after its biggest investor called on it to put itself up for sale. The sale call came from Private Capital Management, which beneficially owns 19% of the company''s stock. Knight Ridder is likely to be in focus today.

ECONOMIC NEWS

Crude oil inventories advanced in the latest week, according to government data released Wednesday, adding to a recent streak of gains. Stocks of gasoline climbed as well.

The Department of Energy's Energy Information Administration revealed that crude oil inventories climbed by 2.7 million barrels for the week ended October 28, rising to 319.1 million barrels from the 316.4 million barrels recorded in the previous week. This followed an advance of 4.4 million barrels for the prior week. Oil inventories are 12% higher than their levels of the same time last year.

Gasoline inventories posted a week-over-week gain of 1 million barrels, the government said, adding to the previous week's advance of 200,000 barrels. Gasoline stocks are now 3.3% below their levels of last year. Inventories of distillate fuel oil fell by 200,000 barrels in the most recent wee

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished broadly higher across the region. The Nikkei hit a four-year high for a second consecutive session, reaching 13,894,78 points. Among the other regional gainers, Singapore’s Straits Times climbed 1.8%, South Korea’s Kospi rose 1.6%, and Hong Kong’s Hang Seng added 0.2%.

European markets lost ground at mid-day, reflecting lower close of U.S. markets overnight, earnings releases, and news that Deutsche Telecom won’t launch a counter bid for the U.K. mobile operator O2. Henkel and Credit Swisse Group helped limit today’s losses. The German DAX 30 lost 0.3%, the French CAC 40 shed 0.4%, and London’s FTSE 100 fell 0.2%.