Preopen Trading: Yesterday's Drop Has Market Poised to Bounce

Seeing as how Thursday's selloff puts the

Nasdaq Composite Index at about half its March value, the market's looking to bounce this morning. The

S&P 500 futures were lately traded at 1329.10, up 7.6 points, and nearly 12 points above fair value, indicating a decent open for the broad market. The

Nasdaq 100

futures were lately traded at 2615, up 85 points, which is actually only 5 points above fair value, which on the Nasdaq indicates only a slightly positive open.

Reports that

Quaker Oats

(OAT)

was back in talks to be acquired by

PepsiCo

(PEP) - Get Report

had that stock running this morning.

The Wall Street Journal

reported Pepsi and Quaker were close to signing a deal that would have the beverage company take over the cereal maker for $14.3 billion in stock. Lately Quaker was traded at $92.50 on

Instinet

, up from $86.94 yesterday, while Pepsi was traded at $44.50, down from $45.38, according to a spokeswoman at Instinet.

Big-cap technology stocks were rebounding in preopen action, indicating some buying interest.

Cisco

(CSCO) - Get Report

was lately traded at $50.38, up from yesterday's close at $47.88, according to Instinet.

JDS Uniphase

(JDSU)

was quoted at $53 a share on Instinet, up from yesterday's $50.06 close.

Semiconductor maker

Intel

(INTC) - Get Report

, which fell under the carnage that was the semiconductor sector yesterday, was lately quoted at $39, after the close yesterday of $38.06.

For Thursday's postclose trading, see The Night Watch.