Market Analysis

The major U.S. index futures are pointing to a lower opening on Tuesday, with a lack of agreement among political parties to form a coalition government in Greece worrying traders enormously. Riskier assets such as the euro and commodities have taken a beating as traders steered clear amid the fluid political situation in Greece. Among global economic data, Australia reported a wider deficit for March, while Germany reported industrial output growth for March that exceeded forecasts. Amid these developments, traders may also focus on a couple of Fed speeches scheduled for the day.

U.S. stocks overcame fears triggered by the results of elections in Greece and France and closed on a mixed note on Monday. The major averages opened lower and moved about in a volatile manner until the afternoon. In the afternoon, the Nasdaq Composite and the S&P 500 Index stayed mostly above the unchanged line before closing marginally higher, while the Dow closed modestly lower.

The Dow Industrials ended at 13,009, down 29.74 points or 0.23 percent, while the Nasdaq Composite added 1.42 points or 0.05 percent before closing at 2,958 and the S&P 500 Index closed up 0.48 percent or 0.04 percent at 1,370.



Airline, biotechnology and financial stocks saw some strength, while gold stocks retreated.

On the economic front, outstanding consumer credit rose by a bigger than expected $21.3 billion in March, with the revolving credit tied to credit card loans rising $5.1 billion and the non-revolving credit tied to auto loans increasing by $16.2 billion.

Currency, Commodity Markets

Crude oil futures are retreating $1.06 to $96.88 a barrel after declining $0.55 to $97.94 a barrel on Monday. Gold futures are currently slipping $24.70 to $1,614.40 an ounce. In the previous session, the precious metal fell $6.10 to $1,639.10 an ounce.

Among currencies, the U.S. dollar is trading at 79.88 yen compared to the 79.91 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2997 compared to yesterday’s $1.3051.

Asia

The Asian markets ended mixed after yesterday’s dismal performance, although the mood appeared cautious.

Japan’s Nikkei 225 average opened higher and traded mostly sideways before closing up 62.51 points or 0.69 percent at 9,182. Meanwhile, Australia’s All Ordinaries remained mostly higher amid some volatility before closing up 14.30 points or 0.33 percent at 4,376.

A report released by the Australian Bureau of Statistics showed that the nation recorded a trade deficit of A$1.587 billion in March, more than double the deficit of A$754 million recorded for February. Economists estimated a more modest deficit of A$1.4 billion.

Hong Kong’s Hang Seng Index retreated 51.90 points or 0.25 percent before closing at 20,485, while China’s Shanghai Composite Index ended down 0.12 percent. India’s Sensex tumbled by 2.17 percent.

Europe

The major European markets are trading lower amid the political uncertainty in Europe. The French CAC 40 Index is down close to 2 percent and the German DAX Index is down moderately, while the U.K.’s FTSE Index is declining modestly.

On the economic front, a survey by the Royal Institute of Chartered Surveyors showed that its house price balance worsened to –19 in April from –11 in March. This reflected a drop in house prices, as the positive impact of stamp duty concessions and mild weather faded.

In corporate news, Norway’s Statoil reported lower profits for its first quarter, as the year-ago quarter benefited from a one-time gain. However, production was up 11 percent.

Deutsche Post reported higher profits as freight volumes to developing countries improved. HSBC reported that its underlying pre-tax profits rose to $6.78 billion from $5.41 billion last year, thanks to solid support from its investment banking division and emerging market operations.

Munich Re reversed to a profit in its first quarter, as a lower loss ratio and higher investment income helped boost bottom line. The company also reiterated its full year outlook. U.K. insurer Aviva announced the resignation of its CEO Andrew Moss, effective immediately. The departure comes in the wake of shareholder disapproval of executive compensation.

U.S. Economic Reports

Richmond Federal Reserve President Jeffrey Lacker is due to hold a roundtable discussion with Guilfod Technical Community College students, in Greensboro, North Carolina at 9:45 am ET.



Dallas Federal Reserve President Richard Fisher will speak to a business audience at the "Growth DFW" event sponsored by the Dallas Convention & Visitors Bureau and the Dallas Regional Chamber at 1:45 pm ET.

Stocks in Focus

Electronic Arts (EA) reported fourth quarter non-GAAP net income of 17 cents per share, lower than 25 cents per share last year, while non-GAAP revenue fell to $977 million from the year-ago quarter’s $995 million. The quarterly results exceeded expectations. For the fiscal year 2013, the company expects non-GAAP net revenue of $4.30 billion and non-GAAP earnings of $1.05-$1.20 per share. Additionally, the company expects a first quarter non-GAAP loss per share of 40-45 cents per share on non-GAAP net revenues of $500 million. While the first quarter guidance was below estimates, the 2013 guidance was upbeat.

Vornado Realty (VNO) reported first quarter adjusted funds from operations of $1.81 per share, higher than $1.73 per share last year. Revenues were almost flat at $727.47 million. The results exceeded estimates.

Dun & Bradstreet (DNB) said its adjusted first quarter earnings rose to $1.35 per share from $1.29 per share in the year-ago period. Core revenues rose 1 percent to $390.1 million. For the full year, the company lowered its core revenue growth forecast to 0-3 percent from 3-5 percent, while it expects adjusted earnings per share growth of 8-11 percent.

Wynn Resorts (WYNN) reported first quarter earnings and revenues that came in below estimates.

Rackspace (RAX) reported first quarter earnings that missed estimates by a penny despite increasing year-over-year. Meanwhile, the company’s revenues beat estimates.

Wendy's (WEN) swung to a profit in its first quarter, but its adjusted earnings per share from continuing operations missed Wall Street view.

DIRECTV’s (DTV) first quarter profit and revenues increased from the year-ago quarter, but its revenues were slightly below analysts' estimate.

OfficeMax (OMX) reported first quarter profit that plunged from the year-ago period. That said, total sales rose 0.5 percent, and were in-line with analysts' estimate.

NYSE Euronext (NYX) said its global derivative average trading volume fell 6.9 percent year-over-year in April, while increasing 1.4 percent from March. European cash trading daily average volume increased, while U.S. cash trading average daily volume decreased.

Blue Nile (NILE), Chiquita Brands (CQB), Kinross Gold (KGC), Learning Tree (LTRE), Openwave (OPWV), Protective Life (PL), Walt Disney (DIS), XL Capital (XL) and W&T Offshore (WTI) are among the companies due to release their quarterly results after the markets closes.