Schaeffer's Today's Market Features: Talbots, Tyco International, U.S. Airways, Altria Group, and Boeing

Futures are slightly lower as investors await another heavy load of economic data. This morning, the Empire State index revealed that business conditions for manufacturers in the New York region improved in November, as the index climbed by about four points to a five-month high of 26.7. Economists expected a decline to about 15.4 in November from 22.9 in October. In November, 41 percent of manufacturers said business was better in November, while 14 percent said conditions worsened. The indexes for new orders, shipments, unfilled orders and employees all improved in November.

Elsewhere, Talbots (NYSE:TLB) announced third-quarter earnings of $8.1 million, or 15 cents per share. Excluding items, earnings would have hit 35 cents per share as total sales rose to $568.6 million. Same-store sales increased 2.3 percent. Analysts had predicted earnings of 15 cents per share.

Tyco International (NYSE:TYC) reported fourth-quarter earnings of $1.27 billion, or 62 cents per share. Earnings from continuing operations amounted to 63 cents per share on revenue of $10.76 billion. The Street had forecast earnings of 49 cents per share on revenue of $10.54 billion. The firm also said it has initiated a restructuring program to improve operating efficiency across the company. The program is expected to give rise to up to $600 million in charges, including $450 million in cash.

10:15 AM Consolidation in the Skies?

You might say that merger news has taken flight today, as U.S. Airways (NYSE:LCC) has offered to buy its rival Delta Air Lines (DALRQ) for $8 billion in cash and stock. Delta, which is currently embroiled in Chapter-11 bankruptcy proceedings, has twice rejected a partnership offer. The deal, should it be approved this time around, would give Delta creditors $4 billion in cash and 78.5 million shares of LCC stock. This news is having a positive impact on the overall airline sector; the AMEX Airline Index (XAL - 60.61) has rallied 4.4 percent out of the gate to reach a new annual high. LCC shares are also in new-high territory for the year, up 16 percent, while DALRQ shares have gained 3.4 percent today.

In other news around Wall Street, Goldman Sachs boosted Altria Group (NYSE:MO) to "buy" from "neutral." The brokerage noted that improvement in international tobacco trends and repercussions from the Kraft Foods (KFT) spin-off could be positive catalysts for the shares. MO is trading 1.3 percent higher this morning and has gapped back above its 10-day and 20-day moving averages.

11:16 AM Mixed Inventory Report Sends Energy Complex Higher

Commodities-watchers eagerly awaited the Energy Department's weekly report this morning. Crude supplies increased for the week of November 10, rising 1.3 million barrels to 336 million. Motor gasoline supplies fell, however, dropping 3.7 million barrels. Distillate inventories dropped for a sixth consecutive week, slipping 3.6 million barrels to 135 million.

Shortly after this report's release, December crude futures were up 72 cents to $59.00 per barrel while heating oil futures climbed three cents to $1.694 per gallon. Unleaded gasoline futures, meanwhile, edged up 2.7 cents to $1.572 per gallon at last check. The Select Sector SPDR Energy Fund (XLE) has rallied one percent, while the AMEX Oil Services HOLDRS Trust (OIH) is closing in on a two-percent gain.

12:40 PM Another All-Time High

As we traverse the noon hour, the Dow Jones Industrial Average (DJIA - 12,240.4) is backing off from yet another all-time high. The gains have followed the path higher forged by positive economic news from New York's Empire State index, which showed that business conditions in the region improved in November. The market's move higher shakes off disappointing news from the world of motor gasoline supplies, which showed a decrease of 3.7 million barrels during the past week. Analysts had expected a slight increase; therefore, the per-barrel price of crude has advanced, but it is currently wallowing below the $59 level.