Nervous Markets Look Ahead To Greece, FOMC Minutes

(RTTNews) - The major U.S. index futures are pointing to a modestly lower opening on Wednesday, with sentiment reflecting nervousness amid the record run of the S&P 500 Index. That said, hopes concerning a Greek debt deal has brightened, with reports suggesting a deal in the works for a 6-month extension of the existing bailout agreement. Meanwhile, domestic economic data has been lukewarm, with housing starts and building permits coming in less than expected. Traders may also stay focused on the industrial production data and the minutes of the FOMC minutes due for the day.

U.S. stocks overcame jitters concerning the Greek debt crisis and ended Tuesday's session modestly higher amid an extended rally in oil prices. After opening lower, the major U.S. averages recouped their losses over the course of the session, moving above the unchanged line by late afternoon trading. Thereafter, the averages held mostly above the unchanged line before closing modestly higher.

The Dow Industrials ended up 28.23 points or 0.16 percent at 18,048, the S&P 500 Index closed 3.35 points or 0.16 percent higher at 2,100 and the Nasdaq Composite closed at 4,899, up 5.43 points or 0.11 percent.

Seventeen of the thirty Dow components closed higher and one stock ended unchanged, while the remaining twelve stocks retreated. Intel (INTC) rallied strongly, while McDonald's (MCD) came under selling pressure.

Among the sectors, oil service stocks were among the best performers of the session, while gold and airline stocks moved to the downside.

On the economic front, the results of the New York Federal Reserve's manufacturing survey showed that growth in regional manufacturing activity slowed in February. The general business conditions index slid to 7.79 from 9.95 in January. The new orders index fell 5 points to 1.22, while the shipments index rose 5 points to 14.12.

Among the employment indexes, the number of employees index slipped 3.5 points to 10.11, while the average workweek index climbed 7 points yet remained in contraction zone at -1.12.

The National Association of Home Builders' housing market survey revealed that homebuilder sentiment deteriorated in February. The housing market index based on the survey fell 2 points to 55.

The present sales conditions index eased 1 point to 61 and the index measuring prospective buyer traffic fell 5 points to 39, while the sales expectations index was unchanged at 60.

Currency, Commodity Markets

Crude oil futures are slipping $1.11 to $52.42 a barrel after climbing $0.75 to $53.53 a barrel on Tuesday. Meanwhile, an ounce of gold is currently trading at $1,206.10, down $2.50 from the previous session's close of $1,208.60. On Tuesday, gold slumped $18.50

On the currency front, the U.S. dollar is trading at 119.21 yen compared to the 119.25 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1376 compared to yesterday's $1.1411.

Asia

Most Asian markets advanced, encouraged by the positive close on Wall Street overnight and hopes that Greece could resolve its issues with its creditors. The Chinese, South Korean and Taiwanese markets remained closed for Lunar New Year holidays.

The Japanese market advanced strongly amid a weaker yen. The Nikkei 225 Index opened higher and moved sideways in the morning. After legging up in the mid-session, the index moved sideways yet again in the afternoon before seeing a short rise in late trading. The index closed 212.08 points or 1.18 percent higher at 18,199, representing the highest closing level in nearly eight years.

Export stocks led the advance due to the yen's retreat, while resource, utility, pharma and construction stocks closed to the downside.

After seeing some volatility in early trading, Australia's All Ordinaries rose steadily since late morning trading, as oil prices lent support to the market. The index added 55.60 points or 0.95 percent before closing at 5,878. Energy and industrial stocks rallied strongly, while most other sectors also were in favor.

Hong Kong's Hang Seng Index ended a truncated session up 47.20 points or 0.19 percent at 24,832.

On the economic front, the Bank of Japan's Monetary Policy Board resolved at the conclusion of its 2-day meeting that it would persist with its policy of raising the monetary base at an annual pace of about 90 trillion yen.

The bank also suggested that consumer prices are growing around 0.5 percent compared to its earlier estimate of a 0.5-1 percent range. The bank's assessment of export and industrial production was upgraded, stating that both components are picking up.

Economists expect the central bank to go for another round of pre-emptive easing in late April to signal its determination to reach its 2 percent inflation target.

A report released by the Conference Board showed that its leading economic indicators index for Australia rose 0.4 percent month-over-month in December following a flat reading in November.

Meanwhile, the leading economic indicators index for Australia compiled by Westpac and the Melbourne Institute inched up 0.1 percent month-over-month in January after remaining unchanged in December.

Europe

European stocks opened higher and are advancing, as traders digest some domestic corporate news and await developments on Greece's debt negotiations.

In corporate news, Peugeot reported a narrower loss and reversed to an operating profit in 2014, helped by strong sales in China and cost cuts. Building material company Lafarge reversed to a loss in its fourth quarter due to write downs, although it said it expects profitability to improve in 2015.

France's Credit Agricole reported higher profits for the fourth quarter, although its revenues took a hit from the lackluster economic climate. Hurt by lower oil prices, Eni reported a wider loss for its fourth quarter.

Spanish utility Iberdrola reported a drop in its full-year net profit amid weak energy demand. Thanks to restructuring initiatives, Hotel group Accor reported strong profit growth for 2014.

On the economic front, the U.K. Office for National Statistical Office showed that the unemployment rate in the U.K. eased to 5.7 percent in the three months ended December from 7 percent in the three months ended September. The number of unemployed fell by 97,000 to 1.86 million. Meanwhile, claimant count fell by 38,6000 in January, more than the 25,000 drop in December.

Although policymakers of the Bank of England unanimously voted to keep the key interest rate at a historic low for the second time, they were divided over future moves, minutes of the meeting revealed. All nine committee members agreed that it was appropriate to leave the stance of monetary policy unchanged at the meeting held on February 4 and 5. Since January's meeting, Ian McCafferty and Martin Weale dropped their call for a rate hike.

U.S. Economic Reports

A Commerce Department report showed that housing starts fell 2 percent month-over-month to a seasonally adjusted annual rate of 1.065 million units in January from the upwardly revised rate of 1.087 million units for December Economists expected housing starts to come in at a seasonally adjusted annual rate of 1.070 million units.

Building permits fell 0.7 percent to 1.053 million units in January, while they were expected at 1.070 million units. Annually, housing starts and building permits rose 18.7 percent and 8.1 percent, respectively.

The Labor Department's report on producer prices for final demand showed a 0.8 percent month-over-month decline. Economists had expected the producer prices index for final demand to have declined 0.5 percent month-over-month in January.

Excluding food and energy, producer prices fell 0.2 percent on a monthly basis following a 0.1 percent increase in December. Energy prices fell 10.3 percent and food prices were down 1.1 percent.

The Federal Reserve is scheduled to release its industrial production report for January at 9:15 am ET. The consensus estimate calls for a 0.4 percent month-over-month increase in industrial output, while capacity utilization is expected to edge up to 79.9 percent from 79.7 percent.

In December, industrial production fell 0.1 percent, reversing a fraction of the 1.3 percent jump in November. The weakness was centered on the utility sector, with output in the sector plunging 7.3 percent. Manufacturing output was up 0.3 percent and mining output rebounded by 2.2 percent.

The Federal Reserve is also due to release the minutes of its January FOMC meeting at 2 pm ET. At the meeting, the central bank left its fed funds target rate unchanged at 0-0.25 percent and reiterated its commitment to remain patient with respect to raising rates.

Federal Reserve Governor Jerome Powell is scheduled to speak on financial stability in New York at 5 pm ET.

Stocks in Focus

Agilent (A) reported in line first quarter earnings per share from continuing operations and its revenues exceeded estimates. However, the company's 2015 guidance was lackluster.

Owens & Minor (OMI) announced its CEO James Bierman intends to retire, with the company stating that its board is initiating a search to identify a successor. The company also reported fourth quarter-adjusted earnings that trailed estimates, while its revenues exceeded estimates. The company's 2015 earnings guidance was lackluster.

Terex (TEX) reported better than expected fourth quarter adjusted earnings, while its revenues were below estimates. The company's 2015 guidance was weak. Separately, the company announced a 20 percent increase to its quarterly dividend to 6 cents per share and a new $200 million stock buyback program.

Analog Devices (ADI) reported better than expected first quarter results and announced an 8 percent increase in its dividend to 40 cents per share. The company's second quarter guidance was also positive.

La-Z-Boy (LZB) reported below consensus results for its third quarter. Meanwhile, Cloud Peak Energy (CLD) reported better than expected fourth quarter results.

Boston Scientific (BSX) announced an agreement with Johnson & Johnson (JNJ) to settle litigation arising from Boston Scientific's acquisition of Guidant by breaching the merger agreement Guidant had with Johnson & Johnson. Boston will make aggregate payments totaling $600 million to Johnson & Johnson.

First Energy (FE) reported above-consensus operating earnings for its fourth quarter, while its revenues trailed estimates. The company forecast 2015 operating earnings below estimates, while its first quarter operating earnings guidance was positive.

Vornado Realty's (VNO) fourth quarter results were better than expected.

Avis Budget (CAR), Barrick Gold (ABX), BJ Restaurants (BJRI), Digital River (DRIV), DryShips (DRYS), EOG Resources (EOG), Fidelity National (FNF), Marathon Oil (MRO), Marriott (MAR), , Williams Companies (WMB) and Williams Partners (WPZ) are among the companies due to release their quarterly results after the close of trading.