>>> Realia attracts new suitors, Cerberus among them

Realia attracts new suitors, Cerberus among them

Spanish property company Realia Business [MCE: RLIA] has attracted new potential bidders, among them the hedge fund Cerberus, El Confidencial reported, citing several sources with knowledge of the process.

According to the Spanish-language report, Cerberus has replaced the Spanish property group Inmobiliaria Colonial as main suitor for Realia.

Colonial had imposed severe conditions on Realia, the report said, including deconsolidating its land assets division from its balance. As reported, FCC [MCE: FCC] and Banco Financiero y de Ahorros (BFA) had put the sale process on ice.

Realia's previous suitors also included the funds AEW, Fortress and King Street, the report stated.

Realia’s net asset value (NNAV) is EUR 556m. The company has a syndicated loan of EUR 1.31bn, which will expire in 2017. Its net financial debt was EUR 1.63bn at the end of June and its current market capitalisation is EUR 359.6m.


Source El Confidencial

>>> Numericable's Outremer Telecom attracts interest from Iliad/Free and Canal P

Numericable's Outremer Telecom attracts interest from Iliad/Free and Canal Plus; Lazard advising

Outremer Telecom, the French mobile phone operator for the French islands of La Reunion and Mayotte, has attracted interest from several potential buyers, French daily Le Figaro reported. The French competition authority, Autorité de la Concurrence, has approved with conditions the acquisition by cable and telecoms operator Numericable of SFR from Vivendi. Among those conditions, Numericable has been asked to divest Outremer Telecom to allay competition concerns in French overseas territories.

The unsourced report claimed that listed French telecoms group Iliad/Free and Mediaserv, a subsidiary of listed French pay TV group Canal Plus, have expressed their interest in the business. The report added that the Competition Authority is believed to view listed French telco Orange, also a potential candidate for the acquisition, as not a good buyer for Outremer Telecom.

According to the report, Numericable has appointed Lazard to handle the sale process.


Source Le Figaro

>>> What to look at today - 28th of October 2014

US market closed Flattish with volume below average @ 741mil shares, people are waiting wed FOMC meeting to take a bet ont his mkt...Twitter is one of the largest movers on the downside afterhours, falling over 10% despite beating the top line consensus numbers and raising FY estimates. Analysts point to the slowdown in the Average Monthly Active Users (MAUs), with q/q growth falling to 1.1% from 6.3% in Q2, predominantly because of high Twitter use during the World Cup this summer....Shanghai Composite is leading the regional indices higher, helped by a rebound in the Industrial Profits growth in September. Recall the Aug profits turned negative for the first time in 2 years. Traders are also buying into the outsized overnight selloff following reports of a delay in Hong Kong-Shanghai link...BOJ Gov Kuroda testified in Parliament, largely reiterating prior commentary on the yen and the economy. Kuroda said the weakness in JPY is a positive for the economy, that recovery is moderate, and that inflation is still on track to hit 2% target in FY15. Note that the BOJ is preparing to formally update investors on its outlook for growth and inflation later this week. A Nikkei report earlier suggested FY14/15 GDP may be revised down to 0.6% from 1.0% due to the continuing drag from the consumption tax that went into effect in April. Also of note, Japan retail sales came in surprisingly stronger, potentially raising the probability of another sales tax hike next year....Nikkei-0.38% Hang Seng +1% Shanghai +1.97%

Eur$ 1.2704 S&P +0.27% EuroStoxx +0.67% Dax +0.67% FTSE +0.41% SMI +0.63%

Macro
- EU May Keep Sanctions Against Russia Until March: Kommersant

Keep an eye on :
- AIXA GY : Aixtron 3Q Loss Wider Than Ests., Says Utilization Rates Falling
- ALFA SS : Alfa Laval 3Q Pretax Misses Est.; Sees Unchanged Demand
- BMPS IM : Monte Paschi, Carige Short-Selling Banned Until Nov. 10: Consob
- CRG IM : Monte Paschi, Carige Short-Selling Banned Until Nov. 10: Consob
- CEQ NO : Cermaq 3Q Ebit Pre-Fair Value, Non-Recurring Loss NK39m
- CLS1 GY : Celesio 9-Month Ebit EU174m vs EU303m
- DB1 GY : Deutsche Boerse 3Q Sales Rise 8 Percent, Confirms FY14 Forecast
- GILGY : DMG Mori Seiki 3Q Ebit Rises, Confirms Forecasts
- GSZ FP : GDF Suez State Share Sale Contested by Unions, Les Echos Says
- GEA GY : GEA Group 3Q Sales Rise 5%, Profit Down 10%; Confirms Outlook
- KLM NA : KLM May Cut as Many as 7,500 Jobs, Get Cheaper Work Force: AD
- KPN NA : KPN 3Q Sales, Ebitda in Line With Ests., Reiterates 2014 Outlook
- KVAER NO : Kvaerner 3Q Ebitda NK194m vs Est NK170m
- LG FP : Lafarge, Holcim Notify EU of Merger Plan, See Closing in 1H,2015
- MB IM : Mediobanca 1Q Net Income Beats Estimates
- MC FP : LVMH’s TAG Heuer Sees 2015 Sales Rising 5%-10%, Le Temps Reports
- NOVN VX : Novartis 3Q Core Op. Income, Core EPS Beat Ests.; Keeps Forecast, to Keep Looking for Technology, Assets to Buy: CEO
- NOVN VX : Amgen Seeks to Block Novartis’s Biosimilar Version of Neupogen
- RLIA SM : Cerberus May Bid For Spain’s Realia, El Confidencial Says
- SAN FP : Sanofi 3Q Business Net Income, EPS In Line; Keeps Forecast
- SAN FP : Sanofi Board Meeting Said to End; No Statement Planned on CEO
- SMIN LN : -2,7% after announce of CFO Departure
- SMIN LN : Smith & Nephew: U.S. Office Says Suture-Anchor Patent Valid
- STAN LN : Standard Chartered Falls Most in 3 Weeks in H.K. After Earnings -2,60%
- TEC FP : Technip Wins EPCI Contract for Kraken Field From EnQuest
- UBSN VX : UBS 3Q Net Income CHF762m After CHF1.32b Net Tax Gain, Says Confident It Can Deliver on Dividend Policy

>>> Brokers Upgrades & Downgrades - 28th of October 2014

>>> Up
*AKZO NOBEL RAISED TO NEUTRAL VS SELL AT GOLDMAN
*C&C GROUP RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*DIA RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*HEIDELBERGCEMENT RAISED TO BUY VS HOLD AT CANTOR FITZGERALD
*HISCOX RAISED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
*K+S RAISED TO NEUTRAL VS SELL AT GOLDMAN
*NOBEL BIOCARE RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*ROTORK RAISED TO BUY VS NEUTRAL AT UBS
*SASOL RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS

>>> Down
*EURASIA DRILLING CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*GEMALTO CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*MORGAN ADVANCED MATERIALS CUT TO NEUTRAL VS BUY AT UBS
*STANDARD CHARTERED CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*TERNA CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN

>>> PT Change

>>> Initiation
*ENEL GREEN POWER RATED NEW BUY AT UBS

>>> Call
>> stock
*AVIVA, RSA EXIT BOFAML INSURANCE MOST PREFERRED LIST
*AMLIN REPLACES HANNOVER RE ON BOFAML INSURANCE LEAST PREFERREDS
*DIRECT LINE, ST. JAMES’S PLACE ADDED TO BOFAML MOST PREFERREDS

WSJ : Hacking Trail Leads to Russia, Experts Say

Hacking Trail Leads to Russia, Experts Say Malicious Code Found at U.S. Firm Where Military Secrets Were Kept

Earlier this year, investigators for Silicon Valley security company FireEye Inc. visited a U.S. firm to determine who, and what, sneaked into the firm’s network harboring military secrets.

There they found what they call a sophisticated cyberweapon, able to evade detection and hop between computers walled off from the Internet. The spy tool was programmed on Russian-language machines and built during working hours in Moscow. FireEye’s conclusion, in a report to be released Tuesday: The cyberspying has a "government sponsor—specifically, a government based in Moscow."

The report is one of four recent assessments by cybersecurity companies, buttressed by reports from Google Inc. and U.S. intelligence agencies, pointing to Russian sponsorship of a skilled hacking campaign dating back to 2007. Targets included NATO, governments of Russia’s neighbors, and U.S. defense contractors Science Applications International Corp. and Academi LLC, the U.S. security firm previously known as Blackwater.

Collectively, the new research offers evidence supporting a view long expressed privately by U.S. officials and American security researchers: Moscow commands the A-team of Internet adversaries.

China, the object of recent U.S. allegations of cyberspying, may hack more often, U.S. officials and researchers say. But Russia hacks better.

"I worry a lot more about the Russians" than China, America’s top spy, Director of National Intelligence James Clapper, said at a University of Texas forum this month, speaking of cyberattacks.

A U.S. official said differentiating between Russian criminal hackers and government hackers is difficult because the government uses cybersurveillance tools created by criminal groups and criminals use tools developed by the government.

For example, U.S. officials still haven’t determined whether the high-profile infiltration of a classified military system in 2008 was carried out by criminals or government hackers because the same surveillance tool was used by both, the U.S. official said.

People with direct knowledge of the investigation said there is no evidence implicating the Russian government in the J.P. Morgan breach.

The Russian embassy didn’t respond to a request for comment.

American complaints about Moscow’s espionage skills come as U.S.-Kremlin relations have hit a post-Cold War low following Russia’s incursion into Ukraine. Although some security firms said they are seeing more activity from Russia-linked attacks these days, U.S. officials say it’s difficult to establish a baseline for Russian-based cyberspying and that finding such attacks is "serendipitous."

FireEye shared its findings earlier this month with The Wall Street Journal, which then found that other security firms and the U.S. government had reached similar conclusions. FireEye also has shared its findings with the government. "Who else benefits from this?" asked Laura Galante, a FireEye manager and former Russia analyst for the U.S. Department of Defense. "It just looks so much like something that comes from Russia that we can’t avoid the conclusion."

FireEye’s Mandiant unit made a name for itself in 2013 when it revealed a Chinese-military hacking group working from an office building in Shanghai. The Justice Department confirmed many of Mandiant’s findings, even naming one of the same hackers, in May when it charged five People’s Liberation Army officers with stealing U.S. trade secrets. FireEye acquired Mandiant for $1 billion in January.

In the case of the Russian-language hackers, researchers inside and outside the government compared notes and believe they are tracking the same group. They dubbed the spy tool described by FireEye "Sofacy."

The company’s investigators said they were caught off guard when they responded to the U.S. firm that had been hacked earlier this year and which held military secrets. The company, which they decline to name, had lost sensitive data, but there were none of the digital fingerprints that Chinese hackers often leave behind, investigators said. Rather, the malware, or malicious code, was littered with spycraft.

The malware program also deployed countermeasures to deter investigators from determining how it worked. It encrypted stolen data and exported it in a way to resemble that victim’s email traffic to better conceal it. FireEye analysts determined the group has been active since at least 2007 and has steadily updated its hacking tools.The malware’s authors also designed it, if needed, to harvest data from machines not connected to the Internet by jumping onto USB thumb drives.

Governments often disconnect computers with highly sensitive information to guard against cyberspies. But government spies in the U.S. and elsewhere have used USB drives to overcome this defense in the past. The Russian hackers used this technique in the 2008 Defense Department intrusion, U.S. officials have said. "These are state-grade weapons," Ms. Galante said.

Sofacy’s authors consistently logged changes to the code between 8 a.m. and 6 p.m. local time in Moscow and St. Petersburg—like an analyst working at a desk, Ms. Galante said. Most of their computers were configured to use Russian, researchers at FireEye and Google found.

Perhaps most telling, researchers say, the hackers deployed the malware almost exclusively in targets of interest to Russia—government networks in the Caucasus and Eastern Europe, U.S. defense contractors and NATO. FireEye found a well-crafted phishing email aimed at a Georgian journalist, purporting to come from an editor at libertarian magazine Reason.

In another phishing attack, the security firm Trend Micro Inc. found the group created fake websites designed to trick employees at Academi into handing over their work email credentials, Tom Kellermann, chief cybersecurity officer said. One of these sites, the slightly misspelled academl.com, was created just weeks after the Russian government accused a firm with links to Academi of sending freelance troops to Ukraine to support the government, according to Internet registration records.

Academi has denied any involvement in Ukraine. A spokeswoman declined to comment.

Trend Micro said the hacking group aimed similar techniques at Science Applications International. A SAIC spokeswoman said the company appeared to have been targeted by hackers creating fake company websites, but blocked the efforts.

Two other computer-security firms with close ties to federal law enforcement, Crowdstrike Inc. and iSight Partners Inc., dubbed the hackers behind the Sofacy malware "Fancy Bear" and "Tsar Team," respectively. Executives at both companies acknowledge the names are references to Russia.

The Google researchers don’t name Russia explicitly in its researchers’ previously unreported memo submitted last month to the Department of Homeland Security and other security professionals. Rather, the 41-page white paper, viewed by the Journal, referred to the hackers as a "sophisticated state-sponsored group" and noted the computers used to craft the cyberweapons were set to work with the Russian language. A Google spokesman confirmed the report’s existence and contents.

>>> US After Hours : GIGA +15.6%, BWLD +6.6%, AMGN +0.9%, AMKR

After Hours Summary: GIGA +15.6%, BWLD +6.6%, AMGN +0.9%, AMKR -12.6%, TWTR -10.9%, KSS -6.1% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: TRNX +30.1%, GIGA +15.6%, SANM +15.2%, ANAD +14.3%, RGC +12.2%, GIG +11.1%, IDTI +6.8%, BWLD +6.6%, ALSN +5.8%, UHS +1.5%, AI +0.9%, AMGN +0.9%, HIG +0.5%, CLF +0.1%

Companies trading higher in after hours in reaction to news: RCPT +29.9% (announced positive Phase 2 results for TOUCHSTONE Trial of RPC1063 in ulcerative colitis; study met primary efficacy and all secondary endpoints with statistical significance for patients on 1 mg dose after 8 weeks of treatment), TRNX +28.9% (co and Wright Medical (WMGI) to merge; each share of Wright common stock will be exchanged for 1.0309 ordinary shares of Tornier), MDCO +12.4% (hearing co received a favorable ruling in patent case against Mylan), EROC +11.8% (announced Q3 cash distribution of $0.07 per unit; announces common unit repurchase program of up to $100 mln), APPY +8.9% (announced its pivotal APPY1 Test clinical trial data were presented at ACEP14; APPY1 Test exhibited a sensitivity of 96.9%), WMGI +5.6% (announced receipt of FDA Approvable Letter for Augment Bone Graft; co to merger with Tornier (TRNX)), ANGI +2.1% (Director disclosed purchase of 15000 shares, worth total of $98.4K), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: AMKR -12.6%, TWTR -10.9%, KN -8.2%, KSS -6.1%, MERU -4.8%, ORC -4.7%, MAS -3.4%, AHGP -2.3%, MTW -2.2%, HLS -2%, CROX -1.7%, AGNC -1.3%, OMI -1.2%, DDR -0.8%, OHI -0.4%, CR -0.3%, PMCS -0.1%

Companies trading lower in after hours in reaction to news: RGLS -5.0% (announced commencement of public offering of common stock), HASI -4.8% (announced public offering of 4 mln shares of common stock),  

>>> Asian up date

Asian Market Update: China industrial profit growth recovers; Twitter plummets on slowing user growth


***Economic Data***
- (CN) CHINA SEPT INDUSTRIAL PROFITS Y/Y: +0.4% V -0.6% PRIOR
- (JP) JAPAN SEPT RETAIL SALES M/M: 2.7% V 0.9%E; Y/Y: 2.3% (6-month high) V 0.8%E
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 114.6 (12-week high) v 111.6 prior
- (KR) SOUTH KOREA OCT CONSUMER CONFIDENCE: 105 V 107 PRIOR (lowest reading since July)

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.8%, S&P/ASX -0.4%, Kospi -0.3%, Shanghai Composite +1.0%, Hang Seng +0.5%, Dec S&P500 flat at 1,957

***Commodities/Fixed Income***
- Dec gold flat at $1,229, Dec crude oil -0.4% at $80.61/brl, Dec Copper +0.2% at $3.07/lb
- (CN) PBoC to drain CNY20B in 14-day repos (25th consecutive drain); Offer yield at 3.4%, unchanged from prior
- JGB: (JP) Japan MoF sells ¥2.47T in 0.1% 2-yr notes, Avg Yield: 0.012% (record low) v 0.074% prior; bid to cover: 4.80x v 6.44x prior
- (AU) Australia MoF (AOFM) sells A$200M in 2022 indexed bonds; Average yield of 0.8749%; Bid-to-cover: 3.72x
- USD/CNY: (CN) PBoC sets yuan mid point at 6.1421 v 6.1446 prior setting (strongest Yuan setting since Oct 20th)

***Market Focal Points/Key Themes/FX***
- Shanghai Composite is leading the regional indices higher, helped by a rebound in the Industrial Profits growth in September. Recall the Aug profits turned negative for the first time in 2 years. Traders are also buying into the outsized overnight selloff following reports of a delay in Hong Kong-Shanghai link.

- BOJ Gov Kuroda testified in Parliament, largely reiterating prior commentary on the yen and the economy. Kuroda said the weakness in JPY is a positive for the economy, that recovery is moderate, and that inflation is still on track to hit 2% target in FY15. Note that the BOJ is preparing to formally update investors on its outlook for growth and inflation later this week. A Nikkei report earlier suggested FY14/15 GDP may be revised down to 0.6% from 1.0% due to the continuing drag from the consumption tax that went into effect in April. Also of note, Japan retail sales came in surprisingly stronger, potentially raising the probability of another sales tax hike next year.

- Twitter is one of the largest movers on the downside afterhours, falling over 10% despite beating the top line consensus numbers and raising FY estimates. Analysts point to the slowdown in the Average Monthly Active Users (MAUs), with q/q growth falling to 1.1% from 6.3% in Q2, predominantly because of high Twitter use during the World Cup this summer.

- Volatility in FX is subdued ahead of the pivotal FOMC policy meeting this Wednesday where the Fed will likely mark the end of QE3 with the final $15B taper. USD/JPY and EUR/USD are trading in a 20pip range below ¥108 and $1.2720 respectively. AUD/USD is outperforming with a 30pip rise from the lows above $0.8820.

***Equities***
US markets:
- RCPT: Reports Positive Phase 2 Results for TOUCHSTONE Trial of RPC1063 in Ulcerative Colitis; Plans to initiate Phase 2 study of RPC1063 for the treatment of Crohn's disease in 2015; +30.7% afterhours
- MSG: Board unanimously approves plan to explore possible spin-off; authorizes up to $500M of stock repurchases; +16.6% afterhours
- RGC: Reports Q3 $0.18 v $0.19e, R$694M $727Me; Declares Special Cash Dividend of $1.00/shr (4.9% indicated yield) and Announces Exploration of Strategic Alternatives; +15.3% afterhours
- SANM: Reports Q4 $0.61 v $0.53e, R$1.69B v $1.63Be; +14.6% afterhours
- BWLD: Reports Q3 $1.14 v $1.06e, R$373.5M v $371Me; Increasing prices 3%; +6.3% afterhours
- WMGI: To merge with Tournier NV, deal valued at $3.3B; receives FDA approvable for Augment Bone Graft; reports prelim Q3 Rev $71.3M v $75.8Me; raises FY14 Rev guidance to $298-302M v $309Me (prior $308-312M); +4.0% afterhours
- AMGN: Reports Q3 $2.30 v $2.11e, R$5.03B v $4.92Be; +1.0% afterhours
- HIG: Reports Q3 $1.06 v $0.84e, R$4.77B v $3.14Be; +0.5% afterhours

- UHS: Reports Q3 $1.36 v $1.37e, R$2.02B v $1.99Be; -1.2% afterhours
- HLS: Reports Q3 $0.55 v $0.48e, R$596.9M v $594Me, adjusts FY14 $2.24-2.27 v $2.02e, adj EBITDA $575-580M (prior $2.25-2.31, adj EBITDA $570-580M); -2.0% afterhours
- CROX: Reports Q3 $0.30 v $0.14e, R$302.4M v $298Me, guides Q4 Rev $200-210M v $229Me ; -3.3% afterhours
- KSS: Guides Q3 SSS -1.4%; FY14 at low end of prior range at $4.05-4.45 v $4.32e; -4.9% afterhours
- TWTR: Reports Q3 $0.01 v $0.01e, R$361M v $352Me; MAUs +23% v +24% q/q; -11.0% afterhours
- AMKR: Reports Q3 $0.20 v $0.26e, R$813M v $840Me; -13.2% afterhours

Notable movers by sector:
- Energy: Beach Energy BPT.AU -6.4% (Q1 results)
- Consumer Discretionary: Stanley Electric 6923.JP +5.1% (H1 results)
- Materials: Alacer Gold Corp AQG.AU +2.5% (Q3 results); BC Iron BCI.AU -12.8% (Q1 results, cuts FY15 sales target); Silver Lake Resources SLR.AU -6.4% (Q3 results)
- Industrials: Sufa Technology Industry Co Ltd CNNC 000777.CN +10.0%, Shenzhen Woer Heat-Shrinkable Material 002130.CN +6.1%, Dongfang Electric 600875.CN +3.8% (China Premier comments on nuclear power); Tianjin Port Development 600717.CN +5.5%, Tianjin Jinbin Development 000897.CN +2.9% (China Pres comments on free trade zone trials); IHI Corp 7013.JP -6.0% (lower H2 op profit, rev guidance); Hino Motors 7205.JP -2.3% (press speculation on H1 results)
- Healthcare: Takeda Pharmaceutical 4502.JP +0.6% (court reduces fine)
- Utilities: Fujikura 5803.JP -8.3% (H1 results)

>>> US Close. Dow+0,08% S&P-0,15% Nasdaq +0,05%

Closing Market Summary: Key Indices End Little Changed While Commodity-Related Sectors Lag

The stock market began the last week of October on a cautious note. The S&P 500 slipped below its 100-day moving average (1962) and settled lower by 0.2% while the Dow Jones Industrial Average (+0.1%) outperformed throughout the session.

Equity indices faced selling pressure at the start, but the source of the early weakness was isolated to the two commodity-linked sectors that spent the entire session at the bottom of the leaderboard.

The energy sector (-2.0%) suffered from a Goldman Sachs downgrade of several major industry players, which stemmed from expectations that crude oil would trade between $70-$80/bbl. On that note, the energy component fell below the $80/bbl level in the morning, but narrowed its decline to just 0.1% by the pit close ($80.94/bbl). The rebound was assisted by a modest downtick in the Dollar Index (85.53, -0.20), which slipped 0.2%.

Elsewhere, the materials sector (-2.1%) endured broad pressure. Miners lagged with the Market Vectors Gold Miners ETF (GDX 20.11, -0.36) falling 1.8%, while steelmakers faced more aggressive selling. The Market Vectors Steel ETF (SLX 41.99, -1.15) lost 2.7% with Cliffs Natural Resources (CLF 9.22, -0.41) sliding 4.3% ahead of its earnings report.

Interestingly, the two cyclical sectors—and the telecom services space (+1.0%)—were the only groups that didn't settle in the neighborhood of their flat lines. Meanwhile, the remaining seven sectors ended with gains or losses of no more than 0.3%.

Generally speaking, countercyclical sectors held up well with the utilities sector (-0.2%) having the worst showing among the defensively-oriented groups. The rate-sensitive sector ended in-line with the market while the heavily-weighted health care space (+0.1%) registered a slim gain. The advance took place despite weakness in Allergan (AGN 182.33, -1.88) and Merck (MRK 56.45, -1.16), both of which reported earnings this morning. Allergan lost 1.0% despite reporting a bottom-line beat and upbeat Q4 earnings guidance while Merck slumped 2.0% after beating earnings estimates on a 4.3% year-over-year decline in revenue.

Treasuries climbed to highs shortly after the start of the session and spent the day near their best levels of the session. The 10-yr yield ticked down two basis points to 2.26%.

Participation was a bit below recent averages with 741 million shares changing hands at the NYSE floor. The relatively light volume was likely a function of some participants sticking to the sidelines ahead of Wednesday's release of the latest FOMC policy directive.

Economic data was limited to Pending Home Sales for September, which rose 0.3%. This was worse than the 0.5% increase forecast by the consensus, but ahead of last month's unrevised decrease of 1.0%.

Tomorrow, the Durable Orders report for September (consensus 0.6%) will be released at 8:30 ET while the Case-Shiller 20-city Index for August (consensus 5.5%) will cross the wires at 9:00 ET. The day's data will be topped off with the 10:00 ET release of the October Consumer Confidence report (expected 87.2).

* Nasdaq Composite +7.4% YTD  * S&P 500 +6.1% YTD  * Dow Jones Industrial Average +1.5% YTD  * Russell 2000 -3.9% YTD