Credit Markets, Earnings, & M&A

Good morning. Markets are in rally mode as credit markets continue to improve and business on Wall Street starts to show signs of stability following some Monday morning M&A activity after Exelon made a $6.2 billion dollar bid for NRG. Rest assure, nothing restores confidence on Wall Street other than some M&A activity.

Premarket gainers: PSUN, NRG, ING, EMKR, CC, YGE, ABK, RBS, LAB, CTX, CHTR, AIG, HAL, MOS, MS, ERIC, DRYS, JASO, MTL, BP, TOT, SWC, SNE, SNCR, BCS, & TCK.

Premarket losers: ELOS, AMAG, SSCC, PRU, VE, AMAG, BGH, FRE, JLL, MAT, NTY, AMR, HRL, & AMX.

At 10:AM we have the Leading Indicators report and Bernanke is due to testify before the House Budget Committee on the economic outlook and financial markets. Then at 11:30AM Paulson will talk about the government's plan to buy bank capital and at 12:45PM we have Fed Reserve Governor Kroszner speaking about risk management at Maryland.

This week will be a big one for earnings reports and this morning we have mixed batch of reports and cautious guidance, which is expected. Needless to say, everyone will be watching to see how the market reacts to negative reports hoping that the bad news is already priced in along with any signs that the credit markets are really improving.

Let's go make it a great week!