The major U.S. index futures are pointing to a higher opening on Tuesday, with sentiment getting a lift from the news that the Greek government may be close to resolving the deadlock in its talks with its private sectors. The news should remove some of the overhang surround the Greek debt crisis and the region's debt woes in general, although Portugal's troubles are speculated to be running deep. Traders may also look forward to a domestic consumer confidence survey and also a regional manufacturing survey for further cues.
U.S. stocks retreated on Monday, although closing well off the lows of the session, with the Dow Industrials and the S&P 500 Index extending their losses for the third straight session. The major averages opened the session sharply lower, hurt by the negative cues from Europe and a lackluster domestic consumer spending report. The averages gradually pared much of their losses over the course of the session but still closed lower.
The Dow Industrials ended down 6.74 points or 0.05 percent at 12,654 and the S&P 500 Index closed 3.32 points or 0.25 percent lower at 1,313, while the Nasdaq Composite Index receded 4.61 points or 0.16 percent before closing at 2,812.
The breadth among the Dow components was nearly even, with 15 stocks closing lower, while 3 stocks closed unchanged and the remaining 12 stocks advanced. Bank of America (BAC) slipped over 3 percent. Alcoa (AA), American Express (AXP) and Procter & Gamble (PG) also saw notable losses. On the other hand, Microsoft (MSFT), IBM (IBM) and Verizon (VZ) added over 1 percent each.
Oil service, financial, housing and semiconductor stocks were among the worst hit stocks.
Commodity, Currency Markets
Crude oil futures are trading up $1.05 at $99.83 a barrel after dipping $0.78 to $98.78 a barrel on Monday. An ounce of gold is valued at $1,746.80, a gain of $12.40 from the previous session's close of $1,731. In the previous session, the precious metal slid $1.20.
Among currencies, the U.S. dollar is trading at 76.33 yen compared to the 76.35 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.3170 compared to yesterday's $1.3154.
Asia
The Asian markets closed a nervous session mostly higher, with the Indian, Hong Kong and Taiwanese markets pacing the gains in the region. Along with the Greek optimism, traders were also encouraged by a positive industrial production data from Japan.
Despite witnessing lackluster sentiment in early and late trading, Japan's Nikkei 225 average added 9.46 points or 0.11 percent before closing at 8,803. A report released by Japan's Ministry of Economy, Trade and Industry showed a 4 percent increase in industrial output compared to the previous month, with auto and electronics products leading the gains.
Hong Kong's Hang Seng Index rose 230.08 points or 1.14 percent to 20,391, while Australia's All Ordinaries ended down 8.70 points or 0.20 percent at 4,326.
Europe
The European stocks are advancing too, with all three major averages in the region rising notably.
Chipmaker ARM Holdings reported fourth quarter pre-tax profits of 69 million pounds on 21 percent sales growth. The results were better than expected. Meanwhile, Spanish financial giant Banco Santander reported a tumble in its fourth quarter profits, hurt by charges related to its real estate holdings.
On the economic front, the eurozone jobless rate came in at 10.4 percent in December, equaling an upwardly revised rate for November and thus remaining at a record high.
U.S. Economic Reports
The Labor Department is scheduled to release its report on the employment cost index for the fourth quarter at 8:30 AM ET. Economists expect a 0.4% in the index for the quarter.
The S&P/Case-Shiller home price index, which tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S., is scheduled to be released at 9 am. Economists expect a 0.4 percent month-over-month drop in the 20-city composite house price index for November.
In October, the S&P Case-Shiller 20-city home price index fell by a seasonally adjusted 3.4 percent year-over-year, with the index declining to its lowest level since March 2003. On a month-over-month basis, the index was down 0.62 percent.
The results for the Institute of Supply Management-Chicago's business survey for January are scheduled to be released at 9:45 am ET. Economists expect the business barometer index based on the survey to rise to 63.
The business barometer edged down to 62.5 in December. The new orders index slipped 2.2 points to 68 and the production index dipped 1 point to 66.2, while the order backlogs index rose 2.8 points to 57.9. Meanwhile, the employment index was up 1.7 points to 58.6.
The Conference Board is scheduled to release its consumer confidence report for January at 10 am ET. The report, which is based on a survey of 5,000 U.S. households, is expected to show that the consumer confidence index improved to 68 in January.
The consumer confidence rose to 64.5 in December from 55.2 in November. The index was at its highest level since April. The expectations index jumped 10 points to 76.4 compared to an 8.4 point-increase by the present situation index to 46.7. The individuals saying jobs were plentiful rose to the most since January, while the individuals saying jobs were hard to get fell to the least since January 2009.
Stocks in Focus
Earnings
Rent-A-Center (RCII) reported fourth quarter adjusted earnings of 85 cents per share compared to 71 cents per share in the year-ago period. Revenues increased to $737.5 million. The earnings exceeded estimates, while the company's revenues were shy of estimates. The company's updated 2012 guidance showed a sales growth estimate of 7-10 percent. The company estimates earnings of $3-$3.20 per share, including 20 cents per share dilution related to its international growth initiatives.
Kilroy (KRC) reported fourth quarter funds from operations of 66 cents per share, higher than 54 cents per share last year. Revenues climbed to $101.5 million from the year-ago quarter's $79.3 million. The results were better than expected.
McKesson's (MCK) third quarter results were better than expected, while the company's 2012 earning guidance surrounded the consensus estimate. Separately, the company announced a deal to buy Drug Trading Company and Medicine Shoppe Canada for C$920 million.
Triumph Group (TGI) reported third quarter adjusted income from continuing operations of $1.29 per share on revenues of $826 million. The third quarter earnings exceeded estimates, while the revenues trailed expectations. The company raised its full year earnings from continuing operations guidance to $4.70 per share, while revenues are expected at $3.35 billion to $3.4 billion. The earnings guidance was above estimates.
Reinsurance Group of America (RGA) reported fourth quarter operating income of $1.91 per share, lower than $2.15 per share last year. The results exceeded estimates. The company's operating earnings guidance for 2012 surrounded the consensus estimate.
PAREXEL (PRXL) reported in-line second quarter earnings, while it issued a healthy guidance for its third quarter and the full year.
Plum Creek Timber (PCL) reported fourth quarter earnings that missed estimates by a penny, while its revenues exceeded estimates despite declining from the year-ago period. The company issued below-consensus guidance for the first quarter and the full year 2012.
Exxon Mobil's (XOM) fourth quarter profit increased 2 percent from the previous year period. Total revenues and other income rose from the year-ago quarter and were above consensus.
Pfizer's (PFE) fourth quarter adjusted earnings improved from the previous year and were above Wall Street view. However, revenues declined 4 percent. The company lowered its 2012 financial guidance primarily to reflect unfavorable changes in foreign exchange rates from mid-October 2011 to mid-January 2012.
After the markets close, Amazon (AMZN), Broadcom (BRCM), C.H. Robinson (CHRW), C.R. Bard (BCR), Illumina (ILMN), Jack Henry Associates (JKHY), JDA Software (JDAS), Manhattan Associates (MANH), Manitowoc (MTW), Seagate (STX), Stanley Furniture (STLY), Unisys (UIS), Websense (WBSN) and Suncor Energy (SU) are scheduled to report their quarterly results.
Other Corporate News
Limited Brands (LTD) announced a 25 percent increase in its regular annual dividend to $1 per share.
RadioShack (RSH) announced preliminary fourth quarter results and now expects fourth quarter earnings of 11-13 cents per share. The company also said its net sales and operating revenues from continuing operations rose 6 percent to $1.39 billion. Analysts estimate earnings of 37 cents per share on revenues of $1.35 billion.
Illinois Tool Works (ITW) reported fourth quarter earnings that beat estimates, while revenues were about in line with estimates. The first quarter earnings guidance is below consensus estimates, while full year guidance exceeds estimates.
Standard & Poor's announced that Post Holdings (POSTwi) will replace Comstock Resources (CRK) in the S&P MidCap 400 Index and Comstock Resources will replace THQ (THQI) in the S&P SmallCap 600 Index after the close of trading on February 3rd. Ralcorp (RAH) is spinning off Post Holdings in a deal expected to be completed around the date.
Eli Lilly (LLY) and its German partner Boehringer Ingelheim Pharma said the FDA has approved Jentadueto tablets for the treatment of adult patients with type 2 diabetes.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.