Bulls Trying to Repair Some of January's Despair

Following yesterday's solid advance to start February on upbeat US and global manufacturing reports, the bulls are building some momentum and stocks are higher for a second-straight session, paring some of the losses that came in January. A better-than-expected earnings report from UPS, and M&A activity in the financial sector as Bank of New York Mellon agreed to acquire the global investment servicing business of PNC, are helping provide some resiliency to the bulls. Optimism toward the housing sector amid a slight rebound in pending home sales and an unexpected profit from D.R. Horton are adding to the favorable backdrop in late-morning trading. Treasuries are mixed as the long end of the curve is extending yesterday's losses as the equity markets rebounded. In other equity news, Dow Chemical beat the Street's earnings expectations, but is under pressure, while Barnes & Noble is surging after a major shareholder is seeking to increase its stake in the book retailer. Overseas, stocks in Asia were mixed, with Japan gaining ground on a weaker yen, while Australia led all gainers after its central bank unexpectedly left its benchmark interest rate unchanged. In other overseas action, Europe is higher despite a profit miss by the region's largest oil firm BP Plc.