Modest Rise as Bulls Try to Continue Momentum

After rebounding solidly yesterday on strong manufacturing data, stocks are modestly higher in morning action as the bulls attempt to continue the momentum and overcome some of the losses that have come to start 2010. Earnings continue to be in focus, with UPS and Dow Chemical both exceeding the Street's profit estimates, while M&A in the form of Bank of New York Mellon's acquisition of the global investment servicing business from PNC. Treasuries are slightly higher after yesterday's decline, ahead of the release of pending home sales. 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.