U.S. stock futures are higher Friday morning, as investors await nonfarm payroll figures at 8:30 a.m. ET. Futures on the Dow Jones Industrial Average surged 49 points to 12,301.00 and futures on the S&P 500 stock index gained 5 points to 1,326.00. Nasdaq 100 futures added 11.75 points to 2,348.00.

Positive sentiment ruled the European markets today. While STOXX Europe 600 Index has gained 0.75%, London's FTSE 100 Index moved up 0.82%.

Most Asian markets ended higher, with Japan's Nikkei Stock Average dropping 0.48%, Australia's S&P/ASX 200 moving up 0.53% and China's Shanghai Composite gaining 1.35%. Hong Kong's Hang Seng Index rose 1.17%.

Last summer's swoon in Electronic marketplace Inc.'s (ICE) stock is ancient history, as ICE has powered through $120 and is now testing $130. ICE, first discussed on June 2, 2009 at a price of $115.15, has the right business model -- futures contracts and more -- at the right time. ICE will likely post a 2011 revenue gain of 15-18% in 2011, followed by another double-digit increase in 2012.

Further, in 2011, the new, more-rigorous regulatory environment should create a trading environment for credit default swaps that's more fair and transparent, and these factors should help boost ICE's electronic trading, energy products trading, and clearing house function revenue streams. Demand for primary futures contracts products for Brent and West Texas Intermediate crude remain strong, and its deal to acquire Climate Exchange Plc., should be good for earnings in 2011.

If you took advantage of, as outlined in September, to scoop-up some shares of IntercontinentalExchange Inc. (ICE) during its late summer swoon, you made the correct move.

Electronic marketplace IntercontinentalExchange Inc., first discussed on June 2, 2009 at a price of $115.15, has rebounded decisively, powering above key, psychological resistance at $100 to trade at/near $120 on Friday, and I obviously still like the shares here.

Look for ICE to post revenue gains of 7-9% in 2010, followed by a solid, double-digit increase in 2011.

The shares of electronic marketplace IntercontinentalExchange Inc. (ICE), first discussed on June 2, 2009, at a price of $115.15, fell this summer and came dangerously close to the sell/stop loss at $88. Even so, the shares appeared to have bottomed at $90 -- creating an attractive price for investors who can tolerate moderate risk.

Look for ICE to post revenue gains of 7% to 9% in 2010, followed by a solid, double-digit increase in 2011.

Electronic marketplace IntercontinentalExchange (ICE), which I first wrote about on June 2, 2009 at a price of $115.15, is still favored at this juncture. Here's why:

In general, institutional investors have kept ICE in the 'tired stock, not broken company' category for about 15 months. Near-term, IIs are concerned that uncertainty regarding U.S. economic growth -- and potential new regulations from Washington - - could weigh on trading volumes.

Intercontinental Exchange, Inc.'s (ICE) stock has meandered since the buy recommendation on June 2, 2009 at a price of $115.15, but I'm reiterating my call. Here's why:

Institutional investors (IIs) have kept ICE in the 'tired stock, not broken company' category for much of the year. Near-term, IIs are concerned that uncertainty regarding U.S. economic growth -- and potential new regulations from Washington -- could weigh on trading volumes.

In the past sixth months, IntercontinentalExchange, Inc. (NYSE: ICE) has gone from high-risk play to a model whose electronic trading and centrally-cleared products have become marketplace leaders, particularly for energy products.

Further, while FY2009 revenue and earnings will not overwhelm, look for electronic trading, energy products trading, and clearing house function revenue streams to resume solid growth by mid FY2010.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) Q1 results beat expectations and raised its guidance.
• Alpha Natural Resources Inc. (NYSE: ANR) shares surged after the it reported strong Q1 earnings.
• Archer Daniels Midland Co. (NYSE: ADM) just missed swinging to a loss due to to hefty investment losses.
• CBS Corp. (NYSE: CBS) surprised with a net loss in Q1 as revenue and cash flow declined.
• Chesapeake Energy Corp. (NYSE: CHK) shares fell after it reported disappointing results for the quarter.

IntercontinentalExchange (NYSE: ICE - option chain) shares are rising today after the company reported its first-quarter profit fell 22% to $72.2 million, or 98 cents per share. ICE's adjusted profit of $1.09 per share beat analysts' estimates of $1.01 per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ICE.

ICE opened this morning at $89.32. So far today the stock has hit a low of $89.32 and a high of $104.60. As of 10:50, ICE is trading at $101.90, up 11.47 (12.7%). The chart for ICE neutral and S&P gives ICE a neutral 3 STARS (out of 5) hold ranking.

MOST NOTEWORTHY: Pioneer Natural, Genomic Health and Alphatec were today's noteworthy upgrades:

• Citigroup upgraded shares of Pioneer Natural Resources Company (NYSE: PXD) to Buy from Hold on valuation following the recent weakness.
• Genomic Health Inc (NASDAQ: GHDX) was raised to Outperform from Sector Perform at RBC Capital, as they believe momentum for the company's Oncotype Dx test is building based on inclusion in new clinical guidelines and expanded reimbursement.
• Alphatec Holdings Inc (NASDAQ: ATEC) was upgraded to Buy from Source of Funds at Think Equity, citing the new CEO's efforts to overhaul the company, which has positioned it for growth.

OTHER UPGRADES:

• Intercontinental Exchange Inc (NYSE: ICE) was added to JP Morgan's Focus List.
• Banc of America upgraded Sirona Dental Systems Inc (NASDAQ: SIRO) to Buy from Neutral.
• Baird upgraded CommVault Systems Inc (NASDAQ: CVLT) to Outperform from Neutral.

Chicago Mercantile Exchange Holdings Inc. (NYSE: CME) opened at $533.30. So far today the stock has hit a low of $533.30 and a high of $539.45. As of 10:55, CME is trading at $535.87, up $2.47 (0.5%).

After hitting a one year high of $596.30 in January, the stock has trended slightly downward over the past six months, bouncing off support at $500 in May. Chicago Board of Trade (NYSE: BOT) management is urging shareholders to vote for a merger with CME rather than the competing offer from Intercontinental Exchange (NYSE: ICE). A vote will be held on July 9. Recent technical indicators for CME have been bullish but deteriorating, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $500 range.CME hasn't been below $500 for more than a day since November and has shown support around $508 recently. This trade could be risky if broader markets take a tumble, but CME is not scheduled to report earnings until the week after July expiration.

Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in CME, BOT, or ICE.

MOST NOTEWORTHY: Cavium Networks Inc (NASDAQ: CAVM), Travel Centers of America LLC (AMEX: TA) and MetroPCS Communications Inc (NYSE: PCS) were today's noteworthy initiations:

• Cavium Networks was initiated with a Strong Buy rating and $25 target at JMP Securities. The firm's checks indicate significant momentum for Cavium's products and cites good visibility. Cavium was also initiated with a Market Weight rating at Thomas Weisel, which finds shares fairly-valued at current levels, with a Buy rating and $25 target at Needham, with an Equal Weight rating and $22 target at Lehman Brothers, with an Equal Weight rating at Morgan Stanley and with a Buy rating and $26 target at Deutsche Bank, which expects over 50% revenue growth from 2006-2009 due to the growth in the company's network processor product line.
• TravelCenters of America was initiated with a Buy rating and $54 target at Ferris Baker Watts and with a Buy rating and $70 target at BWS Financial, as the firm is positive on TA's earnings power and valuation.
• Citigroup initiated shares of MetroPCS with a Buy rating and $40 target. The firm believes the company's coupled with deepening penetration in its core markets should produce revenue and FCF growth that exceeds the maturing industry average.

OTHER INITIATIONS:

• IntercontinentalExchange Inc (NYSE: ICE) was initiated with an Outperform rating at Credit Suisse.
• Janco initiated shares of Foundry Networks Inc (NASDAQ: FDRY) with a Buy rating and $19.50 target, as the firm believes the company's new products put it in a position to gain market share.
• CIBC World Markets initiated shares of Accuray Incorporated (NASDAQ: ARAY) with a Sector Underperformer rating and $19 target.

MAJOR PAPERS:

• The Wall Street Journal reported that President Bush picked former advisor Robert Zoellick to take over the World Bank from Paul Wolfowitz; Mr. Zoellick, now a vice chairman at Goldman Sachs Group Inc (NYSE: GS), was a trade representative and deputy secretary of state.
• The Institutional Shareholder Service has advised shareholders of medical device maker Biomet Inc (NASDAQ: BMET) to turn down a $10.9B private equity deal for the company, according to the Wall Street Journal.
• The Financial Times reported that the IntercontinentalExchange Inc (NYSE: ICE) has signed an exclusive deal with the CBOT Holdings Inc (NYSE: BOT), a move that could advance ICE's unsolicited bid for the Chicago Board of Trade.
• Rather than focus on potential take-out targets, Barron's Online's "Weekday Trader" said that the smart bet for investors is to focus on companies with rising profits, cash flows and dividends, such as Loews Corp-Carolina Group (NYSE: CG) and Imperial Tobacco Group plc (NYSE: ITY), which boast free cash and dividends.

OTHER PAPERS:

• Best Buy Co Inc (NYSE: BBY) is in talks with Vivek for a "foray" into India, the Economic Times reported.
  
• The Washington Post reported that Nigeria filed criminal charges against Pfizer Inc (NYSE: PFE) over child deaths.

MOST NOTEWORTHY: J.B. Hunt Transport Services, Inc (JBHT), Nvidia Corp (NVDA), International Flavors & Fragrances Inc (IFF), RealNetworks, Inc (RNWK) and Marchex (MCHX) were today's noteworthy upgrades:

• Baird upgraded J.B. Hunt Transport Services Inc (NASDAQ: JBHT) to Outperform from Market Perform based on strong trends in Intermodel, valuation, and a $500M share buyback.

• Pacific Growth upgraded shares of Nvidia Corp (NASDAQ: NVDA) to Buy from Neutral citing valuation.

• Buckingham upgraded International Flavors (NYSE: IFF) to Accumulate from Neutral following the company's Q1 report.

• RealNetworks Inc (NASDAQ: RNWK) was raised to Buy from Accumulate at ThinkEquity after its Q1 report.

• Susquehanna upgraded Marchex Inc (NASDAQ: MCHX) to Positive from Neutral. Susquehanna has increased confidence that Marchex will be able to increase monetization via Yahoo!'s (YHOO) Panama upgrade, improving 2008 TAC rates and increased value of owned sites following a major upgrade for 2H07.
  

OTHER UPGRADES:

• Jefferies raised Symantec Corp (NASDAQ: SYMC) shares to Buy from Hold with a $21 target.

• JP Morgan upgraded Comverse Technology Inc (NASDAQ: CMVT).

• Raytheon Co (NYSE: RTN) was upgraded to Overweight from Equal Weight at Lehman Brothers.

• SPX Corp (NYSE: SPW) was raised to Neutral from Underperform at Needham.

• Wachovia upgraded IntercontinentalExchange, Inc (NYSE: ICE) to Outperform from Market Perform.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Usually, the buyer in an M&A transaction has a drop in its stock price. Well, that wasn't the case with Intercontinental Exchange's (ICE) $1 billion purchase of the New York Board of Trade (NYBOT). In fact, ICE's stock surged 10% on the announcement.

Basically, ICE is an electronic exchange for trading on energy products. Despite the recent fall-off in energy prices, the market has been particularly strong for ICE, as the stock has surged almost 80% this year.

So, why not use some of this increased shareholder value to do a deal?

The purchase of the NYBOT will be a move to diversify ICE away from energy. For the most part, NYBOT is an old-school exchange (there is a physical trading floor) that focuses in stuff like sugar, cocoa, and coffee trading.

Also, ICE believes the deal will result in cost synergies of $50 million or so. Something else: ICE is likely to leverage its technology infrastructure into the NYBOT.

Although, according to Wall Street's response, ICE may be too conservative on the benefits of the deal. After all, NYBOT was founded in 1870: there is probably lots of opportunity to modernize things at the exchange.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.