Bulls just won't go away with stocks erasing Monday's weakness in early trading Tuesday. The dollar has hit another low against the euro Tuesday and this has benefited commodity prices. Crude has been trading near between $70 and $75, though the commodity fell below $70 on Monday, but is currently near $71.50. Stocks in the news this morning include Lowe's (LOW), Bank of America (BAC) and AIG (AIG). With the FOMC set to make a statement tomorrow afternoon, trading volumes could be light.

LOW shares are lower by about one percent in early trading at a price near $21.75. The home-improvement retailer reaffirmed its fiscal 2009 guidance, though guidance was already lowered earlier in the quarter. The company also lowered its operating margin and provided a fiscal 2010 forecast that was a bit below current estimates. LOW shares have a 52-week trading range from $13.00 to $25.37.

Shares of BAC are up more than two percent in early trading at a price of $17.65. The bank is the subject of several investigations. The company now will likely face a trial with the SEC over the bonuses paid at its Merrill Lynch unit. Earlier this week, a judge threw out a $33 million settlement offer saying it was not fair to shareholders.

AIG shares continue to rise this morning, up more than 10 percent following a gain of 21 percent on Monday. There are rumors that the government may ease the terms of the company's bailout agreement. AIG has been quite volatile this year with a 52-week range from $6.60 to $114.00 with the stock currently trading near $53.

Shares of Carnival (CCL) are up more than six percent in early trading following the company's earnings report. The cruise line operator easily bested earnings estimates while raising its full year outlook. CCL beat earnings estimates by 15-cents a share, reporting EPS of $1.33. Revenues did fall 14 percent year on year and the fourth quarter outlook was lowered. However, the company says booking volumes are encouraging. CCL shares are trading near $34 with a 52-week range from $14.85 to $40.15.

The FOMC began its two-day meeting today, which will culminate with a statement Wednesday at 2:15 est. Though a rate change is highly unlikely, the Fed could start to discuss an exit strategy for its balance sheet expansion. What the committee has to say about the strength of the economy could also impact trading Wednesday.

Jody Osborne
Senior Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site