Now That's A Bounce

Morning News of Note:

• American Tower receives subpoena from US Attorney for the Eastern District of New York regarding stock option matter (AMT) 29.61 : Co announces that it received a subpoena from the office of the US Attorney for the Eastern District of New York requesting documents related to the cos historical stock option practices.
• Toll Brothers beats by $0.03; lowers FY06 guidance (TOL) 26.90 : Reports Q2 (Apr) earnings of $1.06 per share, $0.03 better than the Reuters Estimates consensus of $1.03; revenues rose 16.7% year/year to $1.44 bln vs the $1.45 bln consensus. Co issues lowers guidance for FY06, to EPS of $4.69-5.16 from $4.77-5.26 vs. $4.93 consensus.
• Hansen Natural signs Mexican distribution agreement (HANS) 178.34 : Co announced that it has signed a distribution agreement with Cadbury Bebidas, S.A. de C.V. for distribution of Monster Energy drinks in Mexico. Additional terms were not disclosed. "Cadbury Bebidas is a professionally managed and well established company with extensive distribution arrangements throughout Mexico. Cadbury Bebidas currently distributes well known beverage brands throughout Mexico, including Penafiel, Clamato, Squirt, Dr. Pepper, Crush, Snapple and other Cadbury Schweppes brands."
• Varian Medical receives FDA 510k clearance on New Trilogy Tx and Trilogy Treatment Machines (VAR) 46.33 : Co announces it has received FDA 510(k) clearance that permits the use of the company's high-energy, ultra-precise Trilogy linear accelerators on an expanded range of medical conditions. The clearance also marks the introduction of Varian's new Trilogy Tx Image-Guided Radiosurgery model designed specifically for surgeons.
• Johnson & Johnson: ALZA Corp receives FDA approval for IONSYS; first needle-free, patient-activated analgesic system for acute postoperative pain (JNJ)

Market Comments: The market is getting a very strong bounce at the open. The best case would be for the market to build on its early gains throughout the day, and not give a good entry point for those sitting on cash, or shorts looking to cover.

The put/call ratio again opened above the 1.0 level, another good sign. And if bond yields begin to ease again today, that would be an additional positive.

Energy stocks are getting a nice bounce, followed by brokerage stocks and also tech. Small-caps are also strongest out of the gate so far.

long JNJ