Looking For Action On Friday? Try AIG (AIG)

Embattled insurer American International Group (NYSE: AIG) reports third-quarter earnings before the bell tomorrow and as far-flung as it seems, analysts expect a $2.39-a-share operating profit out of the company that is 80% owned by Uncle Sam.

AIG's $355 billion fixed income portfolio has benefitted from rising corporate bond and mortgage backed securities prices. AIG's controversial Financial Products business that got the company into hot water by selling derivatives, is also expected to be profitable.

AIG has found support at $36, though a move above $42 could prove to be fertile ground for the shorts.