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Meandering with a bullish bias

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Stocks are holding fraction gains with the Dow Industrials (INDU) gaining 25-points at 8,558, while the broader S&P 500 (SPX.X) holds a 3-point gain at 930 on broader sector gains.

The tech-heavy NASDAQ-100 Index (NDX.X) 1,142 +0.54% is gaining 5.7 points. Tech sector action is modestly higher, with the Networking Index (NWX.X) 178.78 +2% the only sector showing gains greater than 1%. Networking sector bellwether Cisco Systems (NASDAQ:CSCO) $15.62 +1.5% is today's third-most actively traded stock in the morning session at just over 21.9 million shares.

The AMEX Airline Index (XAL.X) 45.54 +2.83% leads sector gainers for the second time in three sessions after Bear Stearns follows Friday's bullish call out of Merrill Lynch on the group, which sent the sector soaring higher by 11%. As industry cost-cutting takes hold, Bear Stearns raised the sector to "market weight" from "market underweight," adding that investors "have an opportunity to participate in the beginnings of a turnaround."

Sector gainer has AMR Corp. (NYSE:AMR) $6.93 +11.21% getting some follow through bullishness after edging above its 200-day SMA of $5.75 yesterday.

Popular discounter Jet Blue (NASDAQ:JBLU) $32.88 +0.39% said its load factor rose 0.2 points to 84.1% in April, while traffic jumped 81% from the year prior. JBLU said capacity increased to 80%.

Satellite broadcast radio-maker Sirius Satellite Radio (NASDAQ:SIRI) $1.06 +17.8% is holding this morning's most actively traded spot at just over 47.8 million shares changing hands after Sanders Morris Harris upgraded the stock to "buy" from "sell" after the firm's channel checks indicated that sales were improving and that sales would most likely build momentum as more product from production becomes available.

The "upbeat" comments regarding Sirius Satellite Radio has also added fuel for today's trade in XM Satellite Radio (NASDAQ:XMSR) $11.29 +16.3% and launched the stock to a new 52-week high. Delphi, which markets XMSR's popular SKYFi product said it has reached an agreement to market the SKYFi products in 2,100 Wal- Mart store locations across the U.S.

Market internals at this hour have advancer outnumbering decliners by a 17 to 11 margin at the NYSE, with 108 stocks trading new highs compared to 4 stocks at new 52-week lows. NASDAQ reports advancers outnumbering decliners by a 15 to 11 margin, with 111 stocks at new 52-week high versus just 6 stocks at new 52-week lows. Yesterday's trade saw the NASDAQ report a yearly high of 220 new 52-week highs, compared to 23 stocks trading new lows by the close.

The broad NASDAQ Composite (COMPX) 1,513.54 +0.63% is just off its session high of 1,517.49 and has not yet been able to achieve its December relative high of 1,521.44.

Treasuries are relatively unchanged as market participants await this afternoon's decision on interest rates from the Federal Open Market Committee.

Jeff Bailey

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