Before the Bell

May is busting out all over, and Wall Street is positively blooming this earnings-reporting season. Stock futures are pointing up after yet another record close for the Dow. And speaking of Dow Jones, News Corp.'s bid to buy the company for a rich premium is another reason we're feeling bullish this morning.

As Todd Clark of Nollenberger Capital Partners points out, investors might think that the market is undervaluing other corporations. March factory order figures are due soon after the opening bell, but everyone's really interested in monthly employment data on Friday. As a result, the dollar is still basking in yesterday's strong manufacturing numbers and is at a two-month high against the yen.

U.S. Treasuries are down a bit after yesterday's declines.

Mortgage applications are up for the second straight week as - hallelujah! - demand for purchase loans outweighed slower refinancing activity.

Oil prices are holding steady, with London Brent crude near $67 a barrel, ahead of weekly inventory data.

In earnings, Time Warner and health insurer Cigna reported higher-than-expected results, but Sprint Nextel posted a loss on a drop in the number of monthly subscribers. In other M&A, reports say the family that controls Cablevision is in advanced talks to take the cable operator private.

Citigroup is buying Bisys Group for $1.45 billion and then selling two of the financial service processor's units to a private equity firm.The New York Post says Gap Inc. is considering big layoffs over the next few weeks, but a spokesman for the clothing retailer says the job cuts would affect a relatively small percentage of its work force.

Lisa Von Ahn - Editor
www.Reuters.com