Futures flat on global weakness
Caterpillar, Yahoo and a few other companies report earnings.
In other news, money flowed back into peripheral banks in December as deposits climbed in Greece, Spain, Italy, and France, while money flowed out of Germany and Cyprus.
Korea may be the latest nation looking to weaken its currency following similar moves by Japan, as capital inflows are strengthening the Won and hurting exports.
Chinese industrial companies earned record profits in December, with profits rising 17.3% from the same period a year ago.
- S&P 500 futures were flat at 1,495.70.
- The EUR/USD was lower at 1.3447.
- Spanish 10-year government bond yields rose to 5.164%.
- Italian 10-year government bond yields rose to 4.156%.
- Gold fell 0.07% to $1,657.60.
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Asian shares were mixed overnight with Japanese shares lagging and Chinese shares rallying strongly. The Japanese Nikkei Index fell 0.94% while the Shanghai Composite Index rose 2.14% and the Hang Seng Index rose 0.39%. Also, the Korean Kospi declined 0.36% and Australian shares rose 0.52%.
European shares were mostly flat in early trade with Italy seeing notable strength led by financials. The Spanish Ibex Index fell 0.1% and the Italian MIB Index rose 0.42%. Meanwhile, the German DAX fell 0.09%, the French CAC declined 0.09%, and U.K. shares fell 0.02%.
Commodities were mostly lower overnight led by natural gas as weather in the northern U.S. warms. WTI crude futures fell 0.02% to $95.86 per barrel and Brent crude futures fell 0.29% to $112.95 per barrel while Natural Gas futures declined 2.06% to $3.37 per million BTU. Copper futures rose 0.05% to $365.35 per pound on strength in Australia. Gold was lower and silver futures declined 0.74% to $30.98 per ounce.
Currency markets were in general risk-off mode as the euro declined and the yen gained. The EUR/USD was lower at 1.3447 and the dollar fell against the yen to 90.60. Overall, the Dollar Index rose 0.08% on strength against the pound, the euro, and the Canadian dollar. The pound saw weakness overnight following comments from incoming Bank of England Governor Mark Carney that he is keen on easing policy further in the U.K.
Stocks moving in the premarket included:
- Xerox (XRX) shares rose 1.51% premarket in response to strong earnings last Friday.
- Salesforce.com (CRM) shares rose 1.23% premarket as the company mulls a 4-for-1 stock split.
- Corning (GLW) shares fell 1.06% premarket ahead of the company's earnings release Tuesday.
- Hewlett-Packard (HPQ) shares rose 0.65% premarket following positive comments from a Seeking Alpha post.
Notable companies expected to report earnings Monday include:
- Biogen Idec (BIIB) is expected to report fourth quarter earnings per share of $1.46 vs. $1.51 a year ago.
- BMC Software (BMC) is expected to report fiscal third quarter earnings per share of $1.01 vs. $0.93 a year ago.
- Caterpillar (CAT) is expected to report fourth quarter earnings per share of $1.70 vs. $2.32 a year ago.
- Seagate Technology (STX) is expected to report second quarter earnings per share of $1.28 vs. $1.32 a year ago.
- Yahoo (YHOO) is expected to report fourth quarter earnings per share of $0.28 vs. $0.24 a year ago.
On the economics calendar Monday, durable goods and pending home sales data are due out, followed by the Dallas Fed manufacturing index. In addition, the Treasury is set to auction three- and six-month bills and two-year notes. Overnight, Spanish retail sales and an Italian bill auction are expected.
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