PRE MARKET

Futures are up this AM on the heels of 2 takeovers in the telecom industry and probably some better than expected numbers from the AAPL camp. Also propping the markets may be the fact of no significant terror incidents over the weekend.

The SPX looks again to retake the 50 day SMA near the 1,509 level after Friday's extremely volatile trade. Hopefully some calm will hit the markets this week as the July 4 holiday is celebrated mid week.

Wachovia says brokerage valuations are becoming "too good to pass up." They note the group is currently trading at 2.07X book value- almost the lowest year to date- they believe 3-5% downside and 15-20% upside potential- LEH top pick followed by MER and GS.

According to reuters, AAPL sold 525k IPHONES since the 6-29 launch; and 50% of West coast AAPL stores sold out on the first day.

Also note, slowly under the radar, the rate on the 10 year Bond has drifted down to 5.037%, way off its recent high near 5.32%.

Gapping up - LOCM VMED IOC DCEL FRZ XFML TRA BCE;