4:30 pm : Stocks sported solid gains for the entire session as a batch of positive news items brought buyers into action. However, afternoon trade became rather subdued as the stock market entered a familiar sideways drift.

Global indices got an overnight lift from news that Abu Dhabi has supplied Dubai's corporate flagship, Dubai World, with $10 billion. Several weeks ago Dubai World had requested to freeze its debt payments amid a lack of liquidity. By doing so, Dubai World had rekindled concern about the security of global credit markets.

On a related note, Standard & Poor's lowered its foreign currency sovereign credit rating and local-currency credit rating on Mexico. The announcement follows several other downgrades and cautionary comments made by ratings agencies in the last two weeks.

Speculation of a pick up in merger and acquisition activity helped win support for stocks this session. That was caused by a move by ExxonMobil (XOM 69.69, -3.14) to acquire XTO Energy (XTO 47.86, +6.37) in an all-stock transaction valued at $41 billion. Since that values XTO at $51.69 per share, a premium of roughly 25% over its closing price this past Friday, several related plays in the oil and gas exploration industry (+6.4%) garnered support. Integrated oil and gas stocks (-2.1%) fell out of favor, though, and hampered the broader energy sector (+0.2%).

4:42PM Abbott to acquire STARLIMS Technologies; this transaction does not impact ABT's previously issued ongoing EPS guidance for 2009 (LIMS) 9.50 -0.30 : Co announced a definitive agreement to acquire STARLIMS Technologies (LIMS), a leading provider of laboratory information management systems, for ~$123 mln in cash. Under the terms of the agreement, ABT will acquire all outstanding equity of STARLIMS for $14 per share, for a total purchase price of ~$123 mln. STARLIMS currently has ~$18 mln in cash on hand. This transaction does not impact Abbott's previously issued ongoing EPS guidance for 2009 and is subject to customary closing conditions. ABT expects the transaction to close in Q1 of 2010.

4:40PM Papa John's reaffirms 2009 EPS guidance in-line, sees 2010 EPS guidance in-line (PZZA) 21.65 -0.09 : Co reaffirms 2009 EPS of $1.42-1.46, excluding the impact of BIBP, vs. $1.47 First Call consensus, guides 2010 EPS in-line at $1.70-1.90, ex-items vs. $1.74 consensus. Co projected domestic system-wide comparable sales in 2010 from positive 1% to negative 1%. The 2010 guidance excludes the impact from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (BIBP), a variable interest entity, but including an allowance for some level of potential volatility in the average spot cheese price for the year. Co says, due to a change in the accounting requirements for variable interest entities, beginning in 2010 we will no longer consolidate the operating results of certain franchise restaurants. The consolidation of these franchise restaurants has not had any impact on our operating earnings; however, 2009 results will include ~$36 mln of revenues related to these restaurants. Excluding the unfavorable impact on revenues of the deconsolidation of these franchise restaurants, our consolidated revenues are expected to increase ~3-5% in 2010 compared to 2009, due to worldwide unit growth, increases in the royalty rate and anticipated commodity cost increases resulting in higher commissary sales prices."

4:36PM PZZA reaffirms 2009 EPS of $1.42-1.46 vs. $1.47 consensus, guides 2010 EPS of $1.70-1.90 vs. $1.74 consensus :