Columbus Day

Good morning. Ahead of the bell, premarket futures are lower indicating a slow start to the new trading week. Due to the Columbus Day holiday, bond markets were closed in the U.S. and no major economic news expected. Nevertheless, attention will turn toward a number of deals announced this morning (see BOBJ, UIC, NGPS, SFUN, UCBH) as perhaps another wave of consolidation now beckons. Commodities are also trading lower while Asian stocks rose to a new record.

Premarket gainers: AVNR, CTDC, HRAY, CNTF, XFML, NGPS, BOBJ, UCBH, MASI, CHDX, LNOP, CPSL, COGN, CBAK, KONG, SSRX, RIMM, SFUN, CYCC, CDS, EFUT, ISIS, TASR, MSTR, CNTY, TUNE, NVTL, INFA, BHIP, AKNS, RMBS, NYNY, FRPT, PWRD, NVDA, BEAS, HEPH, STAR, RFMD, SIGM, BRCL, AMZN, and AAPL.

Premarket losers: NOVN, CSIQ, CHNR, EMKR, JASO, EPEX, CREE, ASIA, AAUK, SOLF, ERIC, CSUN, NPSP, JRJC, and NDAQ.

After four weeks of steady gains for the market, investors will slowly turn their focus to earnings this week. Well over 2,000 companies will report between tomorrow and mid-November. As it stands right now, analysts think earnings in the S&P 500 companies will rise an average of +3% from a year earlier, breaking a 20-quarter streak of gains exceeding +10%. Like usual, the market believes these estimates have been set too low which is why there growing confidence that the market will do well as earnings are released.

As for today, it looks like we're about the see the same sort of speculative trading as we did last week in the Chinese stocks and sympathy plays following this morning's M&A activity while the market waits for earnings. Go out and make it a great week!