Final Hour NDX Strength:
IACI +14.1%, INFY +13.9%, AKAM +13.6%, FWLT +13.0%, FMCN +12.6%, AMZN +12.7%, CELG +12.0%, NIHD +11.1%

Final Hour NDX Weakness:
ISRG -4.3%, SRCL -2.2%, CEPH -1.9%, GRMN -1.9%, DISAD -1.4%

Broad market volatility has pulled back sharply (after yesterday's multi-year highs) with equities rebounding, currently near highs of the day (Dow +394, SPX +51, Nas +90). Market volatility initially gapped lower as the stock market opened sharply higher this morning following yesterday's stunning sell-off. The "fear gauges" continued to decline through midmorning as the major averages hold their early gains. The VIX is currently -7.40 (-15.8%) at 39.32, while the more tech-focused VXN (Nasdaq Volatility Index) is -6.57 (-13.2%) at 43.01. The CBOE put/call ratio is currently at 1.23, indicating higher put trading than call trading.

A sharply higher open is expected, although the gains still have a long way to go to make up yesterday's massive losses when the S&P 500 fell the most since Black Monday in 1987. The failure to pass the financial relief plan has prompted traders to increase bets that the Fed will cut rates.  Fed funds futures suggest an 80% chance of a 50 basis point cut for the October 29 meeting, compared to no chance last week.

Gapping up: AIG +19.6%, WB +12.5%, IFX +11.6%, RTP +10.3%, GFI +9.7%, SSL +9.1%, MT +8.9%, GOLD +7.2%, JPM +6.8%, C +5.6%, NTRS +5.6%, DPS +5.0%, ING +3.6%, BHP +3.3%... Gapping down: NYX -11.6%, BCS -6.2%, SHPGY -2.2%.

Futures suggest a partial recovery from yesterday's steep losses on what has been a slow news morning. Index futures are sharply higher, although they are off their early morning highs. The House of Representatives rejection of the financial relief plan sparked a massive 431 basis point increase in the over night dollar Libor to 6.88%.  The Libor measures what banks charge each other for short-term loans, so an elevated number represents tight credit markets.  All terms of Libor climbed, which range from overnight to 12 months. On the earnings front, Pepsi Bottling Group (PBG) increased third quarter earnings per share by 7.1% year-over-year to $1.04, which topped expectations by $0.02.  On the economic front, the S&P/CaseShiller Home Price Index (9:00 AM ET), regional manufacturing survey Chicago PMI (9:45 AM ET), and consumer confidence (10:00 AM ET) are all set for release later this morning. After plunging more than 10% yesterday, crude prices are on the rise with a gain of 2.9% to $99.23 per barrel. European markets are mixed -- The FTSE is up 0.4%, the CAC is flat and the Dax is down 0.9%.