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.

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.