The Dow, S&P 500, and Nasdaq-100 futures were mixed to mostly lower in early trading. Bonds were lower early Monday, with yields across the curve higher.
The 13-week yield (IRX.X) was higher by 1.19 percent to a yield of 1.69 percent. While on the other end of the curve, the 30-year yield was higher by 0.40 percent to a yield of 5.40 percent.
Qualcomm (NASDAQ:QCOM) was knocked down late last week on accounting fears. This morning, CS First Boston is coming to the defense of Qualcomm, citing overreaction to the accounting concerns last Friday. The brokerage says that the company is legit. Gerard Klauer also defended Qualcomm this morning by upgrading shares to a buy from an out perform rating. QCOM was trading at $38.45 in the early stock session.
In an interesting move late last Friday, Brocade (NASDAQ:BRCD) said that it had adopted a shareholders rights plan, which is normally designed to fend off a hostile takeover. However, the company said that the plan was not adopted in response to a bid. Shares of Brocade were trading at $33.10 this morning.
FedEx (NYSE:FDX) guided expectations slightly higher for its fiscal third-quarter. However, FedEx said that economic weakness continues to adversely impact its package growth, but through cost cutting initiatives and strong growth at its ground division, the company would deliver strong sales and earnings growth. A pickup in demand for transportation services is a sign of a rebounding economy, which makes FedEx's raising of guidance this morning bullish for the economy.
Last Friday, Standard & Poor's raised its debt rating on Edison International (NYSE:EIX) and its Southern California Edison utility unit. S&P said that the utility has made significant progress in its financial position. Traders might watch the utility sector this week as it appears, based upon S&P's upgrade, that the fundamentals are turning around for the better.