A throwback term applies to our early morning rally. It is another 'merger Monday', when excitement from merger and acquisition activity excites the investment world. A nice upward bump after Friday's strong recovery would be very positive for markets especially after the last quarter's tepid performance. Stocks were down 1.9% for that quarter amidst very high volatility. The US dollar is giving back some of its strong gains from Friday and commodities are benefiting, with both oil and precious metals on the plus side. The biggest 'merger' story is not a merger at all, but a split. Hewlett Packard announced a corporate reorganization, splitting into two entities and sparking a strong rally in the stock. Earnings season starts on Wednesday of this week and is likely to provide market direction over the next few weeks. Until that time, economic data is very light.
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