| Stocks on hold for Greece, Bernanke |
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| Tuesday, 07 February 2012 06:29 |
Click the chart for more premarket data. NEW YORK (CNNMoney) -- U.S. stocks were set to open little changed Tuesday, as investors sit on their hands and wait for Greek leaders to agree on the terms of a new bailout package, a key step to avoiding a default. The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were down between 0.1% and 0.2% ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET. Investors remain on edge over the fate of Greece, as worries about a default bubble back to the surface. The nation's leaders are expected to meet Tuesday to discuss additional austerity measures. The government is negotiating reforms needed for Greece to receive a second bailout of €130 billion from the European Union, International Monetary Fund and European Central Bank. Without additional funding, Greece will most likely miss a €14.5 billion bond redemption in March, causing shockwaves throughout the global financial system. In addition to Greece, investors will also be turning their attention to Washington on Tuesday. Federal Reserve Chairman Ben Bernanke will be testifying before the U.S. Senate's budget committee at 10 a.m. ET, when he will discuss the economic outlook and the federal budget. Investors will be especially interested to hear the Fed chief's thoughts on more stimulus measures, the prospects for which continue to dim -- especially after the monster January jobs report. With little economic or corporate news,U.S. stocks hovered below the break-even line Monday. World markets: European stocks were lower in morning trading. Britain's FTSE 100 (UKX) fell 0.3%, while the DAX (DAX) in Germany and France's CAC 40 (CAC40) lost 0.4%. Asian markets ended in the red. The Shanghai Composite (SHCOMP) dropped 1.7%, while the Hang Seng (HSI) in Hong Kong and Japan's Nikkei (N225) slipped 0.1%. Economy: The Federal Reserve will release the consumer credit report for December at 3 p.m. ET. Analysts surveyed by Briefing.com expect the report to show that consumer credit expanded by $8.5 billion in December, much smaller than November's $20.4 billion expansion. Companies: Commodities trader Glencore International (GLCNF) agreed to buy Xstrata. The merger, worth $90 billion, is the biggest mining deal in history. Investors also have a smattering of corporate results to parse through on Tuesday. Oil company BP posted increased fourth quarter profits and raised its dividend on Tuesday. Its latest earnings hailed the improved result as a turning point in the long climb back from Gulf of Mexico oil spill of 2010. But shares of BP (BP) slipped, as investors remain wary of how costly the spill will be following a trial that is set to begin later this month. Beverage giant Coca-Cola (KO, Fortune 500) is scheduled to release earnings before markets open. Walt Disney Co. (DIS, Fortune 500) results are on tap after the bell. Currencies and commodities: The dollar rose against the euro, the British pound and the Japanese yen. Oil for March delivery slipped 68 cents to $96.23 a barrel. Gold futures for April delivery fell $8.60 to $1,716.30 an ounce. Bonds: The price on the benchmark 10-year U.S. Treasury fell , pushing the yield up to 1.91% from 1.90% late Monday. |
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