More merger rumors are swirling with the latest being the potential buyout of Time Warner (TWX).  News out from several sources say that AT&T (T) is in advance talks to buy Time Warner.  Based on the movement in TWX, currently up 9% (T down 3%), investors are buying it.  Speculation has it that the price could be as high at $110.  Previously, Fox had unsuccessfully tried to purchase TWX for $85. 

Bloomberg is also reporting that QCOM’s potential acquisition of NXP Semi (NXPI) could fetch $110/$120 per share and could happen as early as next week. Other sources have said the deal, although not yet finalized, will be $110 cash per share.  We are long QCOM and NXPI on our Hotline service.

The DOW and the S&P500 are in the red on mixed earnings and rising dollar, but the Nasdaq has seen a nice reversal. 

So far this earnings season, according to Earnings Scout, of the 116 S&P stocks that have reported, 80% have beaten earnings estimates while 65% beat on revenue.

The dollar is up again and is at a 7 month high against a basket of currencies.  The rise is in lockstep with those that believe the fed is hiking in December. According to the CME Group’s FedWatch, there is a 60% market expectation for a December hike.  WTI is relatively flat, while gold is down. 

On the NYSE, advancers lag decliners 1207/1594 and on Nasdaq 1084/1480.  Consumer discretionary, consumer staples and technology are strong performers, while energy, health care, industrials, materials, real estate are telecom service are weak.