S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +12.5.

Early sentiment continues to improve, setting the stage for a day of decent follow-through buying, as more solid earnings reports have been accompanied by some supportive M&A news. About 30 minutes ago, it was reported that Fiserv (FISV) will acquire Checkfree (CKFR) for $4.4 bln in cash. That represents a 30% premium to CKFR's closing price yesterday. While the deal is not of the "blockbuster" variety investors have grown accustomed to, the proposed purchase lends some reassurance about this year's record pace of deal making, especially after Advanced Medical Optics (EYE) withdrew its $4.2 bln buyout bid for Bausch & Lomb (BOL) yesterday.