Daytrading, Eminis, Forex trading, Swing Trading Market Analysis - 491561

The major averages are all in positive territory, although the Dow is posting only a modest gain. The markets have moved roughly sideways in recent trading, with the Nasdaq and the S P 500 hovering in positive territory while the Dow lingers near the unchanged line. The Dow is currently up 0.

18 at 12,342.74, while the Nasdaq is up 7.99 at 2,453.

85 and the S P 500 is up 2.07 at 1,403.27.

NYSE Adv/Dec 1746/1397, Nasdaq Adv/Dec 1468/1447. The strength in the markets comes on the heels of several major merger announcements, including Freeport-McMoRan's ( | | | ) $25.9 billion acquisition of Phelps Dodge ( | | | ).

Phelps Dodge has moved sharply higher on the news, with the copper producer up 28.2 percent. The news of the Phelps Dodge acquisition has contributed to strong gains by metal stocks, as it has generated optimism of further consolidation in the sector.

The sector has also benefited from an increase in metal prices. Semiconductor stocks are also seeing some strength in early afternoon trading, contributing to the gain by the tech-heavy Nasdaq. The Philadelphia Semiconductor Index is currently up 1.

4 percent, rising to a six-month intraday high. Novellus ( | | | ) has helped to lead the semiconductor sector higher, with the semiconductor equipment maker up 6.4 percent after hitting a two-month intraday high.

Marvell ( | | | ) and Broadcom ( | | | ) are also posting strong gains. Some strength has also emerged in the brokerage sector, as reflected by the 1 percent gain currently being shown by the Amex Securities Broker/Dealer Index. The gain extends a recent upward move by the index, which set an all-time intraday high at its best level of the day.

Among brokerage stocks, Charles Schwab ( | | | ) is currently up 2 percent after the company agreed to sell U.S. Trust, its wealth management subsidiary, to Bank of America ( | | | ) for $3.

3 billion in cash. Energy stocks have also turned higher over the course of the session after seeing some early weakness. The turnaround comes even though crude for January delivery is currently down $0.

48 at $58.49 a barrel. Meanwhile, housing stocks continue to see weakness in early afternoon trading, with the Philadelphia Housing Sector Index currently down 1 percent.

Standard Pacific ( | | | ) and Ryland Group ( | | | ) are posting notable losses. Shares of Dow component Verizon ( | | | ) are also under pressure, helping to limit the upside for the blue chip index. Verizon is currently down 3 percent after hitting its worst intraday level since late August.

Among individual stocks, shares of Equity Office Properties Trust ( | | | ) have moved sharply higher, with the real estate investment trust currently up 7 percent. With the gain, Equity Office has risen to an all-time intraday high. The gain by Equity Office comes after the company agreed to be acquired by an affiliate of the Blackstone Group for approximately $36 billion.

The deal values Equity Office at $48.50 per share in cash, an 8.5 percent premium over its closing price on Friday.

Mentor ( | | | ) and Allergan ( | | | ) are posting notable gains after the Food and Drug Administration lifted its virtual ban on silicone-gel breast implants. Mentor is currently up 9.5 percent, while Allergan is up 6.

8 percent. Additionally, shares of TD Banknorth ( | | | ) are currently up 6.3 percent on news that TD Bank ( | | | ) has agreed to acquire all the outstanding shares of TD Banknorth that it does not already own for $32.

33 per share in cash.