U.S. equity futures are pointing to a higher open. Earnings season will be in full swing this week after a slow start. As investors return from a three day weekend and with another snowstorm getting ready to hit the Midwest and Northeast, the volume may be light. Little economic data is slated to be released, allowing investors to focus on earnings reports. Volatility remains muted as there is no catalyst to the downside. The CBOE Volatility Index (VIX) keeps bouncing off the $12 support level but hopefully earnings provides a spark.
Treasuries are lower as weakness in global bonds spilled over with the 10-year yield having increased 2.85%. Trading was on the light side overnight. Equities are mostly higher overseas despite disappointing data with weaker than expected German investor confidence figures and U.K. CBI industrial trends survey. Meanwhile, ECB's Nowotny remained optimistic on growth and tried to damp rate cut expectations. There's little on the U.S. calendar today with just weekly chain store sales. Look for IBM and TXN earnings after the close for direction in the tech sector.
Stock Stories:
Johnson & Johnson (JNJ) – Cleaned up – The consumer products company reported quarterly results that beat on the top and bottom lines this morning. They say results reflected the strength in key brands and the U.S. with progress in medical devices. The stock is up slightly ahead of the opening bell.
Verizon (VZ) – Can you hear this?! – The communications giant beats EPS and Revenue estimates on its quarterly report today. The company reports that wireless customers were up over 4%. The shares are up slightly in the pre-market.
