Wall Street is undecided so far on where it will start the day though early earnings news and housing data could help set the tone. For now, eBay's strong profits and big stock move is a bright spot lifting the Nasdaq, which bounced higher on a tech rebound yesterday. The Dow, fresh off its 26th high since October, is flattish. Ford this morning reported a $5.8 billion loss for the fourth quarter, giving it a $12.7 billion annual loss, its worse year ever.
WHICH WAY DO WE GO? Oil traders must be scratching their heads after the strange run in crude in the last couple of days. Breaking out of its recent downtrend in a big way Tuesday, crude seesawed yesterday and is moving higher (oops, make that lower ) this morning. Looks like we could be in for more of the same today. Energy issues are on the agenda at the World Economic Forum in Davos today. Our Maria Bartiromo is there.
EARNINGS CENTRAL: Dow Chemical,Kimberly Clark, Lockheed Martin,Ford,Bristol Myers, Microsoft and Amgen are among the companies reporting today. Last week's bad news has turned to be a source of some good news this week as investors look over earnings reports. Our Bob Pisani reported yesterday that 25 percent of the S&P 500 reported so far and 62 percent have surprised on the upside. Of course it has been the comments about the future that have driven stock action.Ebay'sstock jumped 18 percent after the bell as its earnings handily beat estimates and the company said 2007 would be at the high end of Wall Street's range. Nokia is also adding to positive sentiment this morning in the wireless arena after it reported a surprisingly strong quarter, suggesting rival Motorola's problems may really be Motorola's problems.
Mike Huckman will be covering Bristol-Myers and Imclone this morning, watching carefully for the sales of Erbitux. "People will be looking at the Erbitux sales number and how it is holding up in the face of new competition from Amgen," he said. He is also watching Icos shareholders vote on their merger with Eli Lily at 2 pm this afternoon.
HOUSING DATA: Existing home sales are due at 10 am and could be a market mover, according to our Rick Santelli. "Existing home sales are 85 percent of the housing market, and there's a feeling that there's possibly an upside surprise," he said. Santelli said traders have been looking to data with the view that it is showing the economy to be stronger than expected and rates have been inching up accordingly. "I think we test October high yields of 4.84 on the 10-year and continue to move closer to five percent in a very methodical, orderly fashion on the back of stronger than expected data."
FIRST WORDS: You remember Frank Quattrone, the investment banker who was once the rainmaker of Silicon Valley before he got tied up in the IPO scandal? Well--he remembered Scott Cohn, (I'm sure for his fair, and accurate news reporting) and he agreed to talk to Cohn yesterday in an exclusive interview. We put the video on CNBC.com for you and you can read a story about it too. Cohn appeared on "On the Money" last night and will bring us more coverage today on Quattrone's remarks.