Futures slip on earnings, ahead of Fed meeting
Markets are set for a lower start following mixed quarterly results on Monday and ahead of results from Amazon, Corning and Ford.
In other news, Spanish retail sales in December fell 10.7% from the same period a year ago, worse than the prior reading of -7.8% and below forecasts of a decline of 8.9%.
China's top economic think tank, the Chinese Academy of Social Sciences, lifted its 2013 growth forecast to 8.4% from 8.2% noting that first half growth should be stronger than the second half.
Moody's downgraded six Canadian banks Monday, including Bank of Montreal (BMO) and Toronto Dominion (TD), citing a deteriorating housing market and high consumer debt levels.
- S&P 500 futures declined 1.4 points to 1,495.50.
- The EUR/USD was lower at 1.3442.
- Spanish 10-year government bond yields declined to 5.24%.
- Italian 10-year government bond yields rose to 4.221%.
- Gold rose 0.43% to $1,662.20 per ounce.
- Click here for more of Benzinga's Top News stories.
Asian shares were mixed overnight led higher by Japanese and Chinese shares. The Japanese Nikkei Index rose 0.39% and the Shanghai Composite Index rose 0.53% while the Hang Seng Index declined 0.07%. Also, the Korean Kospi rose 0.84% and Australian shares rose 1.11%.
European shares were mostly lower in early trade, albeit slightly lower, following the weak Spanish retail data. The Spanish Ibex Index fell 0.25% and the Italian MIB Index declined 0.22%. Meanwhile, the German DAX declined 0.1% and the French CAC fell 0.26% while U.K. shares rose 0.14%.
Commodities were mixed overnight with energy futures lagging and metal futures leading. WTI crude futures were flat at $96.44 per barrel and Brent crude futures declined 0.27% to $113.17 per barrel. Copper futures were flat at $366.15 per pound despite strength in Australian and Chinese shares. Gold was higher and silver futures rose 0.81% to $31.03 per ounce.
Currency markets were mixed overnight with yen and euro crosses indicating a risk-off feel while the pound recouped some of its heavy losses from Monday and the Australian dollar rallied. The EUR/USD was lower at 1.3442, the GBP/USD was higher at 1.5724 after declining strongly on Monday, and the dollar fell against the yen to 90.50. Overall, the Dollar Index rose 0.02% on strength against the euro, the Swiss franc, and the Swedish krone. Also, the AUD/USD was higher at 1.0449, a gain of 0.3%.
Stocks moving in the premarket included:
- Yahoo (YHOO) shares rose 2.95% after the company reported earnings that beat analyst forecasts.
- Salesforce.com (CRM) shares declined 1.16% premarket after the company reported earnings.
- BMC Software (BMC) shares declined 7.15% premarket following the company's earnings report.
- Newmont Mining (NEM) shares rose 1% premarket as gold prices rallied strongly.
Notable companies expected to report earnings Tuesday include:
- Amazon (AMZN) is expected to report fourth quarter earnings per share of $0.28 vs. $0.38 a year ago.
- Corning (GLW) is expected to report fourth quarter EPS of $0.33 vs. $0.33 a year ago.
- EMC (EMC) is expected to report fourth quarter EPS of $0.52 vs. $0.49 a year ago.
- Ford (F) is expected to report fourth quarter EPS of $0.26 vs. $0.22
- Valero (VLO) is expected to report fourth quarter EPS of $1.17 vs. a loss of $0.21 per share a year ago.
- Pfizer (PFE) is expected to report fourth quarter EPS of $0.44 vs. $0.50 a year ago.
On the economics calendar Tuesday, the January FOMC meeting begins today and the Redbook is due out. Also, the S&P Case-Shiller home price index is due out and consumer confidence data is expected. In addition, the Treasury is set to auction four-week bills and five-year notes. Overnight, Spanish GDP is due out and Italian and German bond auctions are expected.
More from Benzinga
Click here for your FREE two week trial of Benzinga Pro!
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.