12:45pm (EST)

The market is off to a strong start this week and we called it right in the Weekly Wrap last night.  Futures were pointing toward a big day and the Dow is currently up 132 points to 10,450.  All 30 Dow stocks are showing a gain and the index has traded as high as 10,495 this morning.

The S&P 500 is back over 1,110 and is up 16 points to 1,107.  The Nasdaq is up 30 to 2,176.

Hewlett-Packard (HPQ, $50.82, up $0.78) is set to report earnings after the closing bell today.  The stock is approaching its 52-week high of $51.43 which was set last week and there is a ton of action in the option pits.

Wall Street expects HP to report earnings of $1.13/ share on revenue of $30.4 billion for the quarter.  There are 30 analysts that cover the stock and the high estimate is $1.14 while the low estimate is $1.09.  This means there is a lot of room for upside price movement should the company beat expectations.

After the number Dell (DELL, $14.67, up $0.38) posted there could also be the surprise of an earnings miss.  We don’t think that is the case as we actually feel HP has been taking Dell’s lunch money.  The options look cheap for us to play a possible move to $55 should the stock get some legs to where we might make a double.

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