Democratic Underground - 9:44 EST markets are doing the bidness

Dow 10,911.45 +29.78 (+0.27%)
Nasdaq 2,272.70 +12.07 (+0.53%)
S&P 500 1,272.52 +1.58 (+0.12%)
10-Yr Bond 4.427 -0.41 (-0.92%)

NYSE Volume 486,710,000
Nasdaq Volume 593,680,000

9:15AM: S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +4.0.

9:00AM: S&P futures vs fair value: +4.8. Nasdaq futures vs fair value: +3.5. Still shaping up to be a higher start for the cash market as strong earnings reports from Adobe Systems (ADBE), KB Home (KBH) and Darden Restaurants (DRI) last night also act as early sources of buying support. While Oracle's (ORCL) in-line Q2 report has drawn mixed reaction, a Merrill Lynch upgrade has helped offset over-night weakness in ORCL shares. It is also worth noting that total volumes should be above average today amid quarterly options expiration (quadruple witching), which could also invite increased volatility.

8:33AM: S&P futures vs fair value: +4.5. Nasdaq futures vs fair value: +3.5. Futures indications are off their best levels but still trade above fair value, setting the stage for stocks to resume their fourth-quarter rally. Separately, the latest report on the current (Q3) account balance just checked in at -$195.8 bln (consensus -$205.0 bln), but since a large deficit was widely anticipated, it has so far had little impact on pre-market action. Bonds have also shrugged off the data as the 10-yr note is still up 6 ticks to yield 4.43%.

8:00AM: S&P futures vs fair value: +4.0. Nasdaq futures vs fair value: +4.0. Futures market versus fair value suggest that the major averages will open higher. Helping set the upbeat tone early on have been reports of a potential leveraged buyout of grocer Albertson's (ABS) chain and positive comments from GM's CEO regarding revenue upside for FY06. Further deterioration in energy prices heading into the weekend also bodes well for the bulls.

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