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| | US Market | | The major U.S. index futures are pointing to a mixed opening on Tuesday, with sentiment reflecting cautious optimism of traders, even as the first FOMC meeting of the year gets underway. A weak durable goods orders report released short while ago could in fact spread cheer, given the ramification economic weakness can have on the Fed's itinerary for stimulus withdrawal. The consumer confidence report due to be released shortly after the markets open could also impact market mood.
Sentiment towards the tech space could be marred by Apple's insipid guidance and some disappointing tech earnings. At the same time, some earnings outside of the tech space have been encouraging as well. Given the uncertainty surrounding the monetary policy, subdued activity could be seen.
U.S. stocks moved about in a lackluster manner on Monday before closing lower. The major averages opened higher in a rebound attempt aided by positive earnings. However, following the release of disappointing new home sales data, the major averages declined, with the S&P 500 Index and the Nasdaq Composite spending the bulk of the session below the unchanged line before closing lower. The S&P 500 Index ended down 8.73 points or 0.49 percent at 1,782 and the Nasdaq Composite lost 44.56 points or 1.08 percent before closing at 4,084.
Meanwhile, The Dow Industrials, which retreated in early afternoon trading, languished below the unchanged line till late afternoon trading. Subsequently, the average moved above the flat line and remained higher before pulling back in the final few minutes of trading. The index closed at 15,838, down 41.23 points or 0.26 percent.
Sixteen of The Dow components retreated and one stock ended unchanged, while the remaining thirteen stocks advanced. American Express , Goldman Sachs , IBM , Microsoft , Pfizer , Procter & Gamble and Visa (V) were among the biggest decliners of the session, while Caterpillar rallied close to 6 percent in reaction to its positive financial results. Merck , United Technologies and Travelers also rose notably.
Airline, biotechnology, Gold and brokerage stocks all came under intense selling pressure.
On the economic front, The Commerce Department reported that new home sales fell to a worse than expected 414,000 units on a seasonally adjusted annual basis in December from a downwardly revised reading of 445,000 for the previous month. Inventories as measured by the months of supply rose to 5 months from 4.7 in November. The median price of a new home edged up 0.6 percent month-over-month and rose 4.6 percent year-over-year to $270,200 in December.
On Monday, The Dow Industrials retreated below a key support around 16,801 before paring some of the losses. For now, the index has support around this level, its 100-day MA (currently at 15,756) and the 15,681 level. On the upside, the index has resistances around 15,879, 16,005, 16,078, its 50-day MA (currently at 16,156) and 16,172.
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| | US Economic Reports |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | The 2-day FOMC meeting gets underway, although the monetary policy decision is not expected until tomorrow.
With orders for transportation equipment showing a substantial decrease, The Commerce Department released a report showing that new orders for U.S. manufactured durable goods unexpectedly dropped in the month of December.
The report said durable goods orders tumbled by 4.3 percent in December following a revised 2.6 percent increase in November. The drop in orders came as a surprise to economists, who had expected orders to increase by about 1.8 percent compared to the 3.4 percent growth that had been reported for the previous month.
Excluding the steep 9.5 percent decrease in orders for transportation equipment, durable goods orders still fell by 1.6 percent in December after edging up by 0.1 percent in November. Ex-transportation orders had been expected to rise by 0.5 percent.
The S&P Case-Shiller house price index for November is due at 9 am ET. The consensus estimates call for a 0.8 percent month-over-month increase in the index on a seasonally adjusted basis. Annually, the index is expected to have risen by a seasonally unadjusted 13.7 percent.
The Conference Board is scheduled to release the results of its consumer confidence survey for January at 10 am ET. Economists expect the index to have improved to 79 from 78.1 in December.
The consumer confidence index jumped to 78.1 in December from 72 in November. The present situation index rose to 73.5 from 76.2 and the expectations index climbed to 79.4 from 71.1. Notwithstanding the improvement in the headline number, it is still lower than the year's peak of 82.1 reached in June, although it is a notable improvement from the depressed levels of 25.3 hit in February 2009.
The manufacturing index based on the Richmond Federal Reserve's manufacturing survey and due at 10 am ET is expected to have declined to 10 in January from 13 in December.
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| | Stocks in Focus | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | Apple reported first quarter earnings of $14.50 per share on revenues of $57.6 billion. For the second quarter, the company expects revenues of between $42 billion and $44 billion. The results exceeded estimates, while the revenue guidance was weak.
Ford's (F) fourth quarter results exceeded estimates and it also reaffirmed its 2014 guidance.
DuPont reported better than expected fourth quarter earnings, while its revenues were shy of estimates. The company's 2014 earnings guidance was in line.
Seagate Technology reported second quarter earnings of $1.32 per share on revenues of $3.53 billion. The results trailed expectations.
Rambus reported fourth quarter non-GAAP earnings of 14 cents per share on revenues of $73.4 million. For 2014, the company expects customer licensing income and revenue to be $295 million to $305 million. The results exceeded estimates and the guidance was positive.
Sanmina Corp. reported first quarter non-GAAP earnings of 41 cents per share on revenues of $1.45 billion. The earnings exceeded estimates, while the revenues were below estimates. For the second quarter, the company expects non-GAAP earnings of 36-42 cents per share on revenues of $1.425 billion to $1.475 billion. The guidance was in line.
STMicroelectronics reported a fourth quarter adjusted loss of 1 cent per share on revenues of $2.02 billion, down 6.8 percent. The results trailed expectations.
Rent-A-Center reported fourth quarter earnings of 25 cents per share on revenues of $769.6 million. For 2014, the company expects revenue growth of 4.5-7.5 percent and earnings per share of $2.30-$2.50. The results were below estimates and the guidance was weak.
United States (X) reported fourth quarter adjusted net income of 27 cents per share on net sales of $3.91 billion. The earnings exceeded estimates, while the revenues were below expectations.
Steel Dynamics reported fourth quarter earnings of 24 cents per share on net sales of $1.9 billion. The results were in line.
Semtech announced a restructuring program, that includes a reduction in its workforce by about 6 percent. The company estimates that the restructuring exercise will reduce its operating expenses by about $35 million in 2015.
Centene (CNC) announced an underwritten public offering of 800 million shares of its common stock by one of its existing shareholders.
Swift Transportation reported fourth quarter adjusted earnings of 36 cents per share, down from recast adjusted earnings of 41 cents per share for the year-ago period. Operating revenues were at $1.08 billion. The earnings exceeded estimates, while the revenues were slightly shy of estimates. For 2014, the company expects adjusted earnings per share growth of 15 percent.
Amgen , Arthur J. Gallagher , AT&T (T), Boston Properties (BXP), Electronic Arts , Freescale Semiconductor , Hutchison Technologies , Illumina , RF Micro Device , Owens-Illinois , Rock-Tenn , Vmware and Yahoo! are among the companies due to release their quarterly results after the close of trading.
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| | European Market | | European stocks opened higher and have remained above the unchanged line in as traders digest some domestic earnings.
In corporate news, German engineering giant Siemens reported higher first quarter profits and revenues that beat estimates by most analysts. Dutch consumer electronics giant Philips reported better than expected fourth quarter results, helped by emerging market demand and cost cuts. Meanwhile, Germany's Software AG reported declines in fourth quarter profits and sales.
In an unscheduled trading update, Royal Bank of Scotland said it has set aside nearly3 billionpounds to cover legal expenses and customer compensation claims.
On the economic front, a report released by the Federal Statistical Office showed that German import prices fell 2.3 percent year-over-year in December following a 2.9 percent drop in November. At the same time, export prices were down a more modest 1 percent.
French statistical Office INSEE released the results of its consumer confidence survey for France, which showed an unexpected improvement in consumer confidence in December. The consumer confidence index rose 1 point to 86 in January.
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| | Asian Markets | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | The major Asian markets closed mixed, as worries concerning Fed stimulus tapering and slowing growth in emerging markets were offset to some extent by an additional cash injection by China to ease the credit squeeze ahead of Lunar Day holidays.
Japan's Nikkei 225 average showed volatility throughout the session before closing down 25.57 points or 0.17 percent at 14,980. Technology stocks followed their U.S. peers lower, with TDK, Sharp, Sony, Hitachi, Taiyo Yuden and TDK among the notable decliners.
Australia's All Ordinaries languished below the unchanged line throughout the session before closing 66.30 points or 1.26 percent lower at 5,188. The market witnessed broad based weakness, with material, energy, healthcare, financial and consumer staple stocks seeing notable weakness. Construction, utility and other export stocks also retreated, while real estate and pharma stocks gained ground in the session.
Hong Kong's Hang Seng Index ended a see-saw session down 15.46 points or 0.07 percent at 21,961, while China's Shanghai Composite added 5.21 points or 0.26 percent before closing at 2,038.
On the economic front, National Australia Bank reported that its business conditions index for Australia rose to a 4-1/2 year high of 4 in December from -3 in November. The business confidence index was unchanged at 6.
A report released by the Chinese National Bureau of Statistics showed that industrial profits in China climbed 6 percent year-over-year in December, slower than the 9.7 percent increase in November.
An index measuring corporate service prices in Japan rose 1.3 percent year-over-year in December, according to a report released by the Bank of Japan, faster than the 1.2 percent increase in November.
Meanwhile, the Reserve Bank of India unexpectedly raised its repo rate by 25 basis points to 8 percent in a bid to rein in inflation. The central bank also hinged the future course of monetary policy on how inflation pans out.
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| | Currency and Commodities Markets | | Crude Oil futures are rising $0.40 to $96.12 a barrel after sliding $0.92 to $95.72 a barrel on Monday. Gold futures are currently slipping $6.40 to $1,257 an ounce. In the previous session, Gold ended down $0.90 to $1,263.40 an ounce.
Among currencies, the U.S. dollar is trading at 102.73 yen compared to the 102.55 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.3669 compared to yesterday's $1.3673.
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