Countrywide shot up over 10% in early morning trading as the cost of protecting their debt against default fell for a second day in a row on growing confidence that Bank of America will proceed with its acquisition. The market was also glad to hear that David Sambol will retire as president of Countrywide after its acquisition by Bank of America.

Five-year credit default swaps on Countrywide Home Loans traded on Thursday at about 230 basis points, or $230,000 a year for five years to protect $10 million of debt, down from 295 at Wednesday's close and 390 before the Sambol news, according to Phoenix Partners Group.