Cairn Energy shed 1.6% in the wake of the disappointing listing of its Indian subsidiary, Cairn India, on the BSE and the NSE of India.


9:00AM Market futures traded higher, boosted by tech shares.
U.S. stock market futures advanced, indicating a higher opening of Tuesday trading session ahead of the new earnings season and new product announcements from the two biggest technology shows of the year. The world's largest aluminum maker Alcoa (AA: chart), the company kicking off the new earnings reporting season, is scheduled to release its quarterly results after the closing bell on Tuesday.

Apple Computer Inc. (APPL: chart) rose 1.2% in pre-market trading. The computer maker will showcase new products at its annual Macworld expo, and there are speculations that the company may release a mobile phone based on its iPod digital music player. Other big tech companies announced plans at the Las Vegas Consumer Electronics Show, which started on Monday. Motorola Inc. (MOT: chart) advanced slightly after it said it is developing set-top boxes that can send home television to phones.

Energy shares are expected to suffer weakness as oil futures extended losses, falling 3% to $54.37, the lowest since June 2005. The Energy Select Sector ETF (XLE: chart) dropped 4% in electronic trading before market opening. In earnings news, Supervalu Inc. (SVU: chart), the US third-biggest supermarket chain, reported Q3 earnings jumped 51%, boosted by its purchase of Albertsons Inc. stores. Supervalu said it earned 54 cents per share, up from 53 cents per share last year on revenue that doubled to $10.66 billion from $4.7 billion a year ago. The quarterly profit exceeded estimates of 54 cents a share on revenue of $10.53 billion. Supervalu reiterated its Q4 guidance of 59 to 66 cents per share.

In other corporate news, Dow component General Electric Co. (GE: chart) said it is looking for buyers for its plastics business, valued at up to $10 billion. Apparel retailer Gap (GPS: chart) said that it is considering business alternatives, including the possibility of putting itself up for sale. S&P 500 futures were up 2.2 points, above fair value. Dow Jones industrial average futures rose 29 points, and Nasdaq 100 futures were up 3.5 points.


8:00AM Sprint Nextel dropped 11.4% in pre-open amid considerable subscribers loss and plans of workforce reduction.
Sprint Nextel Corp. (S: chart) dropped 8% late Monday after reporting that its cell phone business suffered a net loss of 300,000 monthly subscribers in Q4 and that the company will reduce workforce by 5,000 jobs to just below 60,000 positions. Most of the job cuts are expected in Q1 of the new fiscal year.

During Q4, Sprint added 742,000 net subscribers, ending the year with a customer base of 53.1 million. The fourth quarter net additions included 876,000 from both wholesalers and affiliate companies that sell Sprint Nextel services, as well as 171,000 new customers for Boost. However, 306,000 direct subscribers left the company, driven by a continuing exodus of Nextel subscribers because of worsening service quality. Although the Sprint brand subscriber base grew during the quarter, it failed to offset the Nextel drop.

Sprint said it expects its 2006 results to be in line with its previous guidance, with full-year revenue of $41 billion to $41.5 billion and adjusted operating income before depreciation and amortization of $12.6 billion to $12.9 billion. On average, analysts forecast 2006 earnings of $1.26 per share on sales of $41.53 billion.
The update, which came after the close of Monday's regular stock session, also included a 2007 outlook which came in below many Wall Street forecasts. For 2007, the company projects operating revenue of $41 billion to $42 billion, while analysts expect earnings of $1.32 per share on sales of $42.04 billion.


7:30 AM Asian markets finish mostly higher with China surging on China Life.
Asian markets finished higher on Tuesday. The Nikkei Index in Japan ended 0.9% higher at 17,238. Mitsui Sumitomo Insurance advanced 5.4%, Millea Holdings rose 3.4% and Sompo Japan Insurance gained 3.1%. Shinsei Bank jumped 3.6% and Mizuho Financial Group closed 2.3% higher. Steelmakers rebounded after their heavy losses on Friday. JFE Holdings advanced 4.9% and Nippon Steel rose 3.3%. Sony surged 6.5%, after Goldman Sachs raised its rating on the company to buy.

In China, the Shanghai Composite Index soared 3.7% to 2,808. Expectations of improved earnings supported shares to a record closing high following several large-cap companies forecast strong growth in 2006 net profit, while Class A shares of China Life made a stronger-than-expected debut. China Life closed at 38.93 yuan ($4.98), more than double its initial public offering price.

The Hong Kong Hang Seng Index shed 0.7% to 19,898 bucking the overall trend. Ping An Insurance declined 4.3%, while PICC fell 6.6%. China Construction Bank slumped 3.5%, Bank of China dipped 2.4% and ICBC declined 2.1%. In Australia, the S&P/ASX 200 index surged 1.6% to end at 5,590. The stock market finished higher on a broad-based recovery led by resource stocks as BHP Billiton gained 3.5%, Zinifex ended 4.5% higher and Minara rose 4% despite declines in zinc and nickel prices on the London Metal Exchange.

The Kospi Index in South Korea gained 0.3% to 1,374. The stock market ended slightly higher as investors hunted for bargains in banking and construction stocks. Kookmin Bank, the largest Korean commercial bank by assets, gained 1.4%, and Hana Financial Group advanced 2.4%. Hyundai Engineering & Construction surged 4% and GS Engineering & Construction gained 4%.


6:30 AM European markets advance on construction and leisure sectors.
European markets were higher on Tuesday. By mid-morning, the U.K. FTSE 100 index rose 17.2 points, or 0.3% to 6,210.60, while the German Xetra Dax gained 43.2 points, or 0.7%, to 6,651.49 and the French CAC 40 added 37.5 points, or 0.7%, at 5,566.10.

Advancers

Saint Gobain led the advancers with a gain of 5%. On Tuesday, ABN Amro upgraded its recommendation from hold to buy. Aegon rose 4%, helped by an upgrade from neutral to buy by Merrill Lynch.

Holcim was in demand for a second session in succession, gaining 2.3% following an upbeat assessment from the chief executive of the Swiss concrete maker. EADS added 1.3% on news of an order for 50 A320 aircraft from Air Asia which arrived as the market closed on Monday.