S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +8.5.

Still shaping up to be a solid start for stocks as both the S&P 500 and Nasdaq 100 futures hold their own above fair value. The absence of any potentially troubling economic data scheduled this morning is placing added emphasis on M&A activity and hopes of a rate cut. With regard to today's limited list of earnings reports, Toll Brothers (TOL) posted a sharp decline in Q3 profits, said cancellations reached their highest rate in more than 20 years, and declined to give guidance; but with shares down about 35% this year, signs of stabilization in the market have ignited bargain hunting efforts across the board, even in homebuilders. TOL shares are up almost 5% in pre-market action.