Stock Futures Lower on Greek Uncertainty. Stocks to Watch: AAPL, BAC, BP, KO, CSTR, EMR, TM, DIS, YUM

Published on Tuesday, 07 February 2012 07:39 Written by Christopher Lynn

New York, February 7^th (TradersHuddle.com) – Stock futures were pointing to a lower open amid weakness in European markets on increased uncertainty over the Greek debt talks, with the country struggling to meet the strict requirements to access the bailout funds. Participants will also pay attention to Ben Bernanke testimony before a Senate committee later in the morning.

In Asia, most stocks closed lower amid Greek jitters. The reluctance that Greece was having to accept the strict condition to access the needed bailout funds, spurred worries in participants that the indebted country was heading to a messy default, which in turn outweighed the raising hopes that the global economy is improving. In Japan, the Nikkei slipped 0.13% from its three month high. After the close Toyota Motors (NYSE: TM) reported a 51% rise in quarterly profit, beating expectations, while it also raised its annual forecast closer to market expectations. Meanwhile, the Nikkei tumbled 1.7% pressured by the global jitters and concern that an expected cut in banking reserves was not happening. Steel related stocks were under pressure after China’s Industry Ministry warned of low demand and high costs in the space.

In Europe, equity markets were under some pressure amid disappointment from participants on Greece’s progress in securing a deal that could offer the country access to the much needed bailout funds. Equities were also falling amid poor results from UBS, which had a difficult year amid a drop in trading and advisory income.

The euro was sliding 0.08% against the Dollar, trading above the $1.31 level. Crude oil was losing 0.54% to $96.39 per barrel. Also in the energy complex, natural gas was adding 0.20%, trading above $2.50 per MMBtu. Gold was sliding 0.41% to $1717.90 an ounce and silver was falling 0.93% to $33.435 an ounce. Meanwhile, copper was losing 1.01%.

On economic news, at 10 am, Federal Reserve Chairman Ben Bernanke will start its testimony in Capitol Hill and at 3 pm, December Consumer Credit data will be available.

Today’s Stocks to watch: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), BP (NYSE: BP), Coca-Cola (NYSE: KO), Coinstar (NASDAQ:CSTR), Emerson (NYSE: EMR), Walt Disney (NYSE: DIS), and Yum! Brands (NYSE: YUM).

Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was sliding 0.05% to $463.75 in pre-market, giving back some of its outperformance in the prior session, in which the stock posted a new all-time high of $464.98. Apple received upside momentum amid increased talk over the new Apple TV set. According to reports in Canadian newspapers, Rogers Communications Inc and BCE Inc are in talks with Apple to become Canadian launch partners for its much-hyped Apple iTV set. Yesterday, Jefferies joined the speculation about the Apple TV set, which according to the firm, the tech giant will likely name iTV. Jefferies said that video content would become the next big focus for the iPad and the iPhone maker.

Bank of America (NYSE: BAC) was falling 0.75% to $7.91 in pre-market amid market weakness stemming from jitters in the euro zone without the lack of progress on Greece securing the bailout funds needed and after UBS disappointed investors with its poor results. BofA jumped in the prior session close to the $8 per share mark; however there was increased activity in the Put side, signaling that some participants were worried over the 62% increase from the lows of $4.92 posted just seven weeks ago.

BP (NYSE: BP), the energy giant, was tumbling 2% to $45.87 in pre-market on reaction to its earnings report. The company reported results for its fourth quarter, in which it earned $2.41 per share on revenues that climbed 14.7% year over year to $96.34 billion. The company also raised its quarterly dividend to $0.08 per share from $0.07 per share. Ahead of earnings the stock broke out on a daily chart above resistance created by the high made in late October near $45.85.

Coca-Cola (NYSE: KO), the owner of one of the most valuable brands in the world, was climbing 1.4% to $68.98 on initial reaction to better than expected earnings on higher than estimated revenues. The company posted earnings of $0.79 per share, $0.02 better than consensus, on revenues of $11.04 billion.

Coinstar (NASDAQ:CSTR), the owner of the Red Box DVD Rental kiosks, will be in focus after surging close to 17% in the after-hours session. The company beat earnings expectations by $0.36 per share, on revenues that climbed 33.1% year over year to $520 million. Coinstar also issue mixed guidance for the quarter, with inline EPS and revenues above consensus, while it also provided inline guidance for fiscal 2012. The company also announced that it would acquire the assets of NCR entertainment line of business for up to $100 million. Yesterday, Coinstar announced that it was partnering with Verizon to offer a streaming service, aimed against rival Netflix.

Emerson (NYSE: EMR), the electric motor maker, will likely be under pressure in the session after missing earnings expectations by $0.01 per share on revenues that came inline with consensus. The company issued mixed guidance for fiscal 2012, inline EPS on revenues below consensus. Emerson said sales declined 4%, with the U.S. down 4% and total international sales down 3%. Supply chain disruptions because of the flooding in Thailand affected results significantly in Process Management and to a lesser extent in Network Power, in total delaying approximately $300 million in sales, most of which are expected to be recover in 2012.

Walt Disney (NYSE: DIS), the world’s largest media company, will be in focus ahead of its quarterly earnings report due our after the closing bell. On average analysts expect a profit of $0.71 per share on revenues of $11.2 billion. Last quarter, the company posted a 9.3% upside earnings surprise, as it earned $0.53 per share. Yesterday, Davenport upgraded the stock to a Buy from Neutral, with Disney trading above its calculated resistance at $40.25.

Yum! Brands (NYSE: YUM), the Pizza Hut, KFC, and Taco Bell restaurant chains owner and operator, was climbing 1.76% to $64.30 in pre-market after the company posted better than expected earnings on higher than estimated revenues. The company posted a profit of $0.75 per share, $0.01 better than consensus, on revenues that jumped 15.4% year over year to $4.11 billion. According to the company, worldwide system sales climbed 11%, prior to foreign currency translation, including a surge of 33% in China. Same Stores sales climbed 1% in the U.S., but 21% in China.