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Bank Results to Rise 10% - 20% in 2011?

Bullish headlines. Wednesday morning, the Empire Manufacturing Survey was far stronger than expected. The Financial Times headline is, "Global Boom in Resource Spending." The WSJ headline is "Shopping Spree Fuels Surge." Former Fed Governor Lyle Gramley said GDP will rise by more than 3 percent this quarter and will grow at that pace or better in 2011. JP Morgan, Morgan Stanley and Pimco all have made similar pronouncements recently.

Meanwhile, Europe is weak ahead of the EU meeting tomorrow as German Chancellor Merkel makes it clear her opposition to widening the bailout and Moody's has thereatened to downgrade Spain's debt

Banking results "will be up 10-20% next year," according to Goldman Sachs. They did lower estimates for Morgan Stanley's Q4 to $0.35 from $0.55 due to "muted" fixed income trading.

Elsewhere:

1) Blast of frigid air for IPOs. They're pushing the last IPOs of the year out the door, and three of the four priced overnight were priced below the filing range. (Learn more: China IPO Frenzy Stirs Bubble Talk)

a) Fleetcor Technologies (FLT), which provides business services to oil companies 12.7 ml shares at $23.00 (at the low end of the price talk of $$23-26);

b) Rignet, a communication services company to the oil and gas industry (RNET), priced 5 million shares at $12.00 (below price talk of $14-$16);

c) commercial real estate services firm Walker & Dunlop (WD) priced 10 million shares at $10.00 (below price talk of $14-$16);

d) financial services firm Gain Capital (GCAP) priced 9 million shares at $9 (below the price talk of 11 million at $13-$15).

What's missing: Swift Transport never made it out the door.

2) Regions Financial rises 6 percent and BankAtlantic jumps 18 percent following a report in the South Florida Business Journal that PNC Financial is exploring a possible acquisition of one or both of the banks. According to the report, PNC is looking to gain a bigger presence in Florida, where the two targeted banks have a significant number of branches.

3) Honeywell falls 1 percent after the industrial provided disappointing guidance for next year. 2011 earnings are seen between $3.50-$3.70 vs. $3.82 consensus on revenues of $35 billion-$36 billion vs. $35.7 billion consensus. Still, CEO David Cote believes that the company is "clearly growing faster than the markets we serve," and expects double-digit earnings growth next year.

4) Drugmaker Novartis rises 8 percent after revealing it will increase its offer to buy the remaining 23 percent of Alcon it does not yet own. On the news, Alcon, which makes eye care products, is up 2 percent. The deal, which is now valued at $12.9 billion, will give Alcon shareholders around $168 in cash and stock, up from a prior offer of $153.

5) Drugmaker Bristol-Myers Squbb announced it is raising its quarterly dividend 3.1 percent to $0.33 per share.

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