Market Analysis

The major U.S. index futures are pointing to lower opening on Friday, with risk appetite waning after doubts resurfaced over whether the austerity measures announced by the Greek government could adequately satisfy the Eurozone leaders. The recent gains make may traders wary of any further upside in the wake of the still-fluid situation in Greece. The results of a consumer sentiment survey due to be released shortly after the markets open may also create some ripples in the market.

U.S. stocks went about the same routine on Thursday as in the previous session, seeing some indecision and volatility in the morning before firming up amid caution in the afternoon. Traders reacted to an unexpected decline in the domestic jobless claims data and an announcement from European Central Bank President Mario Draghi that Greek political leaders have finally reached an agreement on austerity measures.

The Dow Industrials added 6.51 points or 0.05 percent before ending at 12,891 and the S&P 500 Index closed up 1.99 points or 0.15 percent at 1,352, while the Nasdaq Composite closed at 2,927, up 11.37 points or 0.39 percent.

Sixteen of the thirty Dow components closed higher, while one stock ended unchanged and the remaining thirteen stocks declined. American Express (AXP) and United Technologies (UTX) rose 1.30 percent and 2.50 percent, respectively, while Caterpillar (CAT), Cisco Systems (CSCO), Hewlett-Packard (HPQ) and JP Morgan Chase (JPM) were among the worst decliners.

Commodity, Currency Focus

Crude oil futures for March delivery are slipping $1.71 to $98.13 a barrel after advancing $1.13 to $99.84 a barrel on Thursday. The previous session’s strength came on the back of the positive U.S. jobless claims data and optimism concerning the Greek agreement.

Gold futures, which rose $9.90 to $1,741.20 an ounce in the previous session, are currently slipping $29.70 to $1,711.50 an ounce.

Among currencies, the U.S. dollar is trading at 77.68 yen compared to the 77.6665 yen it fetched at the close of New York trading on Thursday. After seeing strength in recent sessions, the euro is currently seeing a pullback. The common currency, which broke through the 1.33 barrier yesterday before settling at $1.3286 versus the dollar, is currently trading at $1.3182.
Asia
The major Asian markets retreated as, optimism over the deal struck by Greece paled before fears that the Mediterranean nation may face resistance to the implementation of reforms. Japan's Nikkei 225 average ended 55.07 points or 0.61 percent lower at 8,947.

Australia's All Ordinaries lost 34.50 points or 0.79 percent before closing at 4,323 and Hong Kong's Hang Seng Index ended down 226.15 points or 1.08 percent at 20,784. Meanwhile, China's Shanghai Composite Index edged up 2.30 points or 0.10 percent to 2,352.

China reported a trade surplus of $27.3 billion in January compared to a surplus of $16.5 billion in December, as imports plunged due to weak domestic demand in the new year holiday shortened month.

Europe

European stocks are declining sharply amid concerns about Greece despite Alcatel-Lucent (ALU) and Barclays (BCS) coming out with positive tidings.

U.S. Economic Reports

U.S. imports grew more than exports in December, resulting in an increase in the trade deficit, according to figures released by the Commerce Department. According to Commerce Department figures, total U.S. exports came in at $178.8 billion while imports were recorded at $227.6 billion.



That results in a trade deficit of $48.8 billion, up from the $47.1 billion recorded in November. Most economists had predicted the deficit figures to come in at $47.8 billion.

The preliminary report of the Reuters/University of Michigan's consumer sentiment survey for February is scheduled to be released at 9.55 am ET. The consumer sentiment index is expected to edge down to 74.3 from January's 75.

Bernanke is due to speak to the 2012 National Association of Homebuilders International Builders' Show on "Housing Markets In Transition" and take questions from the audience in Orlando at 12:30 pm ET.

Cleveland Federal Reserve Bank President Sandra Pianalto will speak to the Neighborhood Housing Services of Greater Cleveland Annual Luncheon on "Creating Value in Distressed Neighborhoods at 12:50 pm ET.

The Treasury Budget, a monthly account of the surplus or deficit of the federal government, is due to be released at 2 PM ET. The budget is considered an indicator of budgetary trends and the thrust of fiscal policy. Economists expect a deficit of $50.1 billion for January compared to a deficit of $86 billion for December.

Stocks in Focus

NYSE Euronext (NYX) reported fourth quarter adjusted earnings of 50 cents per share, higher than 46 cents per share last year. Revenues, excluding transaction-based expenses, were up 2 percent at $628 million. The results were better than expected.

International Game Technology (IGT) announced the resignation of CFO Pat Cavanaugh and the appointment of John Vandermore to the role of CFO, effective February 13, 2012. Lam Research (LRCX) announced the appointment of Martin Anstice as its president and CEO.

UPS (UPS) announced a 9.6 percent increase in its quarterly dividend to 57 cents per share. Lear Corp. (LEA) said its board has approved a 12 percent increase in its quarterly dividend to 14 cents per share.

Republic Services (RSG) said its fourth quarter earnings climbed to 31 cents per share from 42 cents per share last year. Revenues rose to $2.03 billion from the year-ago quarter’s $2.02 billion. For 2012, the company expects adjusted earnings of $1.98-$2.02 per share on 1.5-2 percent revenue growth. The results were ahead of estimates, while the earnings guidance surrounded the consensus estimates.

LinkedIn (LNKD) reported better than expected fourth quarter results.

Activision Blizzard’s (ATVI) fourth quarter earnings and revenues exceeded estimates, while its first quarter guidance was soft.

Protective Life (PL) reported fourth quarter after-tax operating income of $1.02 per share compared to 62 cents per share last year. Peer XL Group (XL) reported a loss of 25 cents per share on an operating basis for its fourth quarter compared to earnings of 74 cents per share last year. While Protective’s earnings exceeded estimates, XL’s bottom line results were below estimates.

Expedia’s (EXPE) fourth quarter adjusted earnings remained flat at 58 cents per share, while its revenues rose 7 percent to $787.13 million. The earnings exceeded estimates, while revenues trailed expectations.

Brooks Automation (BRKS) reported first quarter adjusted earnings of 6 cents per share on revenues of $120.2 million. While the earnings exceeded estimates, revenues were below estimate. For the second quarter, the company expects non-GAAP earnings of 15-20 cents per share on revenues of $132 million to $140 million. The guidance was fairly positive.

Amkor (AMKR) reported a drop in fourth quarter earnings to 11 cents per share from 20 cents per share last year. Sales fell 8 percent to $684 million. For the first quarter, the company expects a loss of 3 cents to earnings of 9 cents per share on net sales of $615 million to $665 million.

Halozyme (HALO) announced that it would sell 6.8 million shares in a public offering.