Monday Morning Musings

The market is getting a boost in early trading due to the big M&A news hitting the tape.

TXU Corp. (TXU) announced it will be taken private by KKR and Texas Pacific for $45 billion, the largest buyout ever.

Also, Station Casinos (STN) confirmed its buyout for $8.8 billion, and there are rumors that Dow Chemical (DOW) could be taken out for $54 billion, and that TRB is in play also.

Not helping the market are comments from former Fed Chairman Greenspan, who said that the US economy could "possibly" see recession by the end of the year. He made these comments at a conference in Hong Kong, but was really saying that it was a remote possibility, rather than a likelihood.

Oil is trading higher again this morning, to $61.55. Bond yields are falling further, with the 10-year yield down another 3 basis points to 4.64%. At the margin, these are offsetting factors.

I think the market will likely trade lower intraday, following the opening pop, but then stabilize by the end of the session. Last week's sentiment indicators showed a marked pickup in bearish sentiment, which should help keep a bid under the market.

I'll be back with a news roundup in a bit--