We Begin 2K10

Good morning and happy new year!

Futures are positive amid strength in overseas markets, dollar weakness, and M&A activity. Also the Federal Reserve's top two officials hinted that interest rates would stay at ultra-low levels for months to come.

Top headlines this morning include the following:

• Low rates didn't cause bubble, Bernanke says (MarketWatch)

• Oil above $80 on US economy, demand optimism (Chron)

• U.S. business loan defaults rise again (Reuters)

• Chinese manufacturing grew the most in five years (BusinessWeek)

• Novartis seeks to buy rest of Alcon for $39 billion (Reuters)

• Total signs a $2.25B shale-gas pact with Chesapeake Energy (Reuters)

• Merz Pharma Group will acquire all the outstanding shares of BioForm Medical (Bioform)

• Analysts at both UBS and Credit Suisse upgraded shares of Morgan Stanley (MarketWatch)

At 10:AM we have reports on Construction Spending and the ISM Manufacturing Index. Also today Fedspeak is expected from both Lockhart and Duke during today's session.

Read more of my premarket report.