U.S. MARKET AVERAGES

U.S. stock futures were sitting near the unchanged mark, predicting a slightly higher opening as markets stabilized Monday, following the heavy sell off with the three major averages posting modest gains.

The futures gained ahead of a slew of earnings reports with investors awaiting a clearer earnings direction from perceived market leaders.

Major companies expected to report Tuesday are Dow components 3M, DuPont, McDonald''s, United Technologies and Johnson & Johnson. Among the other noteworthy companies scheduled to release quarterly results are The New York Times, Sun Microsystems and Northrop Grumman.

According to estimates, fourth-quarter earnings are expected to rise just 12%, down from estimates a week ago of a 13.5% increase.

An oil price decline below $68 a barrel also provided support to market sentiment.

Texas Instruments Inc. (TXN: chart), the largest maker of microchips for mobile phones, reported Q4 earnings per share that fell short of Wall street estimates after the close on Monday.

Wal-Mart Stores Inc. (WMT: chart) rose after Goldman Sachs raised its rating on the retailer.

Standard & Poor''s 500 index futures were up 1.20 points, above fair value.
Nasdaq 100 index futures were up 1 point, and Dow Jones industrial average futures were up 15 points.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks recovered from last-week sharp declines, following a securities probe of the Internet portal Livedoor which sent the Nikkei and the other regional bourses in the negative. Investors recharged with positive expectations and charged back into Asian equities. South Korea’s Kospi led the gainers, surging 2.3%, followed by the Nikkei, up 1.9% at 15,648.89. Taiwan’s Weighted index advanced 1.1%, while Shanghai Composite lost 0.3%.

European stocks traded in a tight range at mid-day, reflecting a lackluster close of U.S. markets overnight and some support provided by telecom giant Vodafone Group and miner BHP Billiton. The German DAX 30 was flat at 0.03%, while the French CAC 40 declined 0.2%, and London’s FTSE 100 slipped 0.1%.

OIL, METALS, CURRENCIES

Crude oil prices eased below $68 after Saudi Arabia offered to pump larger amount of crude oil to cover Nigeria’s outage. However, prices were supported by investor fears of potential shortages. Light sweet crude for March delivery fell 69 cents to $67.41 a barrel. London Brent declined 63 cents to $65.53.

European gold traded mixed. In London gold traded at $556.65, up from $555.70. In Zurich the precious metal traded at $556.65, down from $558.25. In Hong Kong gold rose 40 cents to close at $556.40. Silver opened at $8.99, up from $8.92.

The U.S. dollar advanced against other major currencies. The euro was quoted at $1.2272, down from $1.2305. The dollar bought 114.60 yen, up from 114.40. The British pound was quoted at $1.7835, down from $1.7870.

EARNINGS NEWS

Johnson & Johnson, (JNJ: chart), consumer and healthcare company, reported Q4 earnings of 73 cents a share, up from 41 cents a share in the year-ago period, in line with analyst estimate. The year-earlier quarter included a $789 million tax charge connected with the repatriation of funds. Sales fell 1.1%, as domestic sales dropped 4.2%, while international sales increased 3.1%.

Brinker International Inc., (EAT: chart), restaurant operator, reported Q2 net income of 49 cents a share, up from 44 cents a share in the year-earlier quarter on 10.9% revenue growth, topping analyst estimate of 46 cents a share. Same-restaurant sales advanced 2.2%.

McDonald's Corp, (MCD: chart), reported Q4 net income of 48 cents a share, up vs. 31 cents a share in the year-ago quarter, matching analysts’ expectations. Revenues increased 4% - 6% in constant currencies - to $5.23 billion, on a 4.2% global comparable sales increase.