Schaeffer's Today's Market Features: KB Home, Dell, Washington Mutual, Agilent Technologies, and EarthLink

With an hour's worth of trading in the rearview mirror, the market averages are moderately higher. The Dow Jones Industrial Average (DJIA- 12,152.3) has spread its wings beyond the 12,100 mark and is currently up about 50 points.

Topping the news today is KB Home (NYSE:KBH), which announced the exodus of its Chief Executive Officer, Bruce Karatz. The embattled exec agreed to vacate his post after an internal investigation implicated him in an options backdating scandal. The firm's Chief Operating Office Jeffrey Mezger will rise to assume the role. KBH shares are trading nearly three percent higher today.

Meanwhile, in domestic news, President Bush is meeting with a bipartisan commission led by former Secretary of State James Baker to formulate and examine potential new strategies for the war in Iraq. A National Security Council spokesperson said Sunday that: "The President looks forward to sharing his thoughts with the Iraq Study Group...he is open to any ideas and suggestions on the way forward."

11:57 AM Dell, Hewlett-Packard Rally on Positive Analyst Comments

In news around the Street this morning, Washington Mutual (NYSE:WM) announced that it will pay $47 million to Comerica as part of a settlement agreement to resolve a lawsuit pending against Commercial Capital Bancorp. WM bought Commercial Capital on October 1. The firm reported that none of the claims that were the subject of the settlement were alleged against WM or involved any WM employees or practices.

Elsewhere, Agilent Technologies (NYSE:A) reported that it has agreed to acquire Acqiris, a privately held provider of high-speed digitizers and analyzers used in commercial, industrial and government electronics. Financial terms of the deal were not disclosed.

Meanwhile, Dell (NASDAQ:DELL) and Hewlett-Packard (HPQ) are seeing a little action today. Both companies are slated to report earnings on November 16. Furthermore, Deutsche Bank analyst Chris Whitmore boosted his price targets on the two firms. Whitmore lifted his target on DELL to $28 per share from $25, saying that there is better visibility on the company's near-term results. For HPQ, Whitmore increased his price target to $40 per share from $34 on the grounds that the company could exceed earnings estimates by two cents to three cents per share. At last check, DELL was up more than two percent while HPQ has hit a new annual high and is currently up 0.35 percent

1:05 PM New Convertible Bonds Announced

As we head deeper into midday trading, the major market indices are in positive territory. The Dow Jones Industrial Average (DJIA - 12,135) is up 27 points while the S&P 500 Index (SPX - 1,384.3) has increased three points. The Nasdaq Composite (COMP - 2,400) has jumped 11 points.

Meanwhile, December gold continues to retreat. At last check, the yellow metal was down $3.60 to $626.50 an ounce. December silver has slipped 23.5 cents lower at $12.88 an ounce. The metals have tripped lower as oil prices move lower and the U.S. dollar strengthens.

In news around the Street, CDC Corp. (CHINA) announced that it has agreed to sell $168 million of 3.75-percent senior exchangeable convertible notes due 2011 to 12 institutional investors in a private placement. The firm stated that, upon a qualifying initial public offering of either CDC Software or CDC Games, the notes would become exchangeable into that company's common shares. In the event neither CDC Software nor CDC Games completes a qualifying initial public offering within two years from the issue date of the notes, the notes would become convertible into CDC shares at an initial conversion price of $10.37 per share.

Meanwhile, EarthLink (NASDAQ:ELNK) announced that it plans to offer $225 million of convertible senior notes due 2026. The firm said it will grant underwriters an overallotment option to purchase up to an additional $33.8 million of notes. ELNK expects to use a portion of the proceeds to fund convertible note hedge transactions.