In reaction to strong earnings/guidance: VLO +13.2%, BP +7.8%, RCL +5.8%, UA +5.5%, ATHR +3.8%, X +3.8%, HGR +3.8% (light volume), HLIT +3.5% (light volume), FIS +2.5%, SAP +2.1%... M&A news: AHG +31.2% (S&P announces it will be removed from the S&P MidCap 400; being acquired for cash by an affiliate of The Blackstone Group with deal expected to close about 10/28), BRL +3.7% and TEVA +3.4% (TEVA and BRL provide update on acquisition, lending banks have agreed to amend Barr's unsecured credit facilities to permit them to remain in place following Barr's acquisition by Teva)... Select financial stocks rebounding: FITB +13.3%, MS +8.8%, NCC +6.4%, HBC +6.3%, C +5.1%, GS +5.0%, BAC +4.3%, JPM +3.5%, WFC +3.0%... Select oil/gas names trading higher boosted by BP and VLO results: STO+11.2%, TSO +11.0%, NOV +7.4%, RDS.A +6.9%, TOT +6.6%, PBR +6.4%, CVX +3.4%, COP +3.0%, XOM +2.9%,STO +11.2%, TSO +11.0%, RDS.A +6.9%, TOT +6.6%, CVX +3.4%, COP +3.0%, XOM +2.9%... Select metals/mining names showing strength with higher spot prices: SSL +14.3%, MTL +9.8%, AUY +9.4%, BBL +9.2%, MT +8.7%, RTP +7.8%, BHP +7.6%, GOLD +7.3%, GFI +7.1%, AEM +6.7%, NEM +4.0%, GLD +1.9%,... Select solar names trading higher: SOL +13.8%, YGE +10.1%, LDK +8.9%, STP +8.4%, ESLR +6.7%, FSLR +5.7%... Other news: DFS +11.2% (MasterCard settles litigation with Discover Financial Services; Visa also settles legal dispute with Discover), CCL +8.9% (up in sympathy with RCL), VIP +8.2% (Court freezes Altimo's stake in Vimpelcom - WSJ), BA +8.1% (reaches deal with machinists' union - Financial Times), SVNT +7.5% (modestly rebounding from yesterday's 60%+drop), SNY +7.1% (still checking), AAPL +4.0% (still checking), GE +3.9% (accessed Federal Reserve short-term funding facility, doesn't disclose amount issued - Bloomberg)... Analyst comments: ADM +6.3% (initiated with Buy at Soleil), GLW +4.4% (upgraded to Buy at ThinkPanmure), BSY +4.1% (upgraded to Buy at Citigroup); AMR +6.4%, DAL +4.3%, UAUA +3.7% and LCC +3.6% (all upgraded to Add at Calyon).

The Gold sector is showing Relative Strength today as (GLD) price shakes off the opening gap down and rallies above yesterday's high. Also note the Gold indices XAU +5.62%, HUI +7.95% are atop the leader board.

In reaction to disappointing earnings/guidance: AAI -20.3%, CNB -19.1%, ANAD -18.7%, ABB -14.9%, AMZN -13.7%, SNE -12.1%, ADCT -11.6% (also downgraded to Underweight at JPMorgan), ACL -11.4%, TEX -10.3%, LRCX -6.3% (also downgraded to Neutral at Credit Suisse), STX -6.3%, DAI -4.9%, PLD -4.7%, BDK -4.5%, NTRI -4.4%, BIDU -3.2%, CS -2.8%, BG -2.1%... Select financials trading lower: BCS -8.7%, AXA -7.9%, ING -7.9% (announces John Hele, Chief Financial Officer, will leave ING as of March 31 2009), STD -3.2%, BAC -2.5%, HBC -2.3%, GS -2.2%, JPM -1.4%, WFC -1.4%... Select oil/gas names showing weakness with crude trading lower: REP -4.9%, PBR -4.1%, TOT -3.0%, BP -2.7%... Select metals/mining names showing weakness with lower spot prices: BHP -8.5% (BHP said to face EU objections to RTP offer - Bloomberg.com), BBL -8.4%, MT -7.6% (Arcelor Mittal reviews $35 bln plan for growth - FT), GOLD -7.1%, RIO -6.4%, AEM -6.2%, ABX -4.8%, NEM -4.0%, GLD -3.2%, AUY -2.0%, AA -2.0%... Other news: CDNS -7.4% (announces accounting review and postpones release of Q3 financial results and webcast; reaffirms the expected third quarter 2008 results; also downgraded to Hold from Buy at Citigroup), EBAY -1.5% (trading down in sympathy with AMZN)... Analyst comments: PCU -7.8% (downgraded to Sell at Goldman - DJ), FRO -6.2% (downgraded to Underweight at JPMorgan), AKS -4.2% (initiated with Sell at BofA), FCX -4.2% (downgraded to Neutral at Goldman - DJ), BHI -1.4% (downgraded to Hold at Stern Agee).