Wake Up Call - Feb 13

Good Morning. At the open today, the Dow Industrials are being lifted by an upgrade of General Motors and a rumor that Alcoa may be an acquisition target. The S&P 500 and NASDAQ have also opened higher. Still, we believe the market will likely remain antsy ahead of key economic data set for release later this week and important discussion from Ben Bernanke starting Wednesday.

Asia:
Hang Seng Index -2.24%; Shanghai/Shenzhen 300 +1.5%; NIKKEI 225 +0.67; BSE SENSEX 30 -0.70%; KRX 100 +0.24%; Ho Chi Minh +1.92%

U.K. & Europe:
DJ STOXX 50 Index 0.00%; FTSE 100 +0.11%; CAC 40 +0.22%; DAX +0.16%; Russian RTS Index +0.94%

KEY HEADLINE NEWS

• The International Energy Agency (IEA) today raised its forecast for global oil demand growth, spurred by an increase in expectations for China. At the same time, the organization warned OPEC against further production cuts that could dangerously tighten the oil market.
• The U.S. trade gap widened in December to a deficit of $61.2 billion, largely due to an increase in oil import prices during the month. Record level foreign auto and consumer goods purchases also drove the expansion.
• More news confirming continued housing weakness hit the market today, as KB Homes reported results. Its report shows a sharp 38% drop in net orders in the fourth quarter.
• Reports are that North Korea has agreed to a deal to undo its nuclear program. Wall Street Greek poses this question: does the deal include a provision for North Korea to turn over the bombs it has already created and the radioactive material it has already transferred to other parties? WSG believes North Korea's decision was driven by concern that it will be the target of a U.S. retaliatory strike after al Qaeda or Iran uses the weapons it has sold them, and is positioning itself now to avoid that consequence.
• Ecuador is in trouble regarding a key $135 million debt payment it was scheduled to make this week. The nation is reportedly offering to make the payment during its 30 day grace period, but much skepticism exists regarding its ability to do so.
• This week is one full of key economic news, including the testimony of Ben Bernanke to Congress, and releases of important housing, inflation and consumer sentiment data. See our report, "The Greek's Week Ahead" for all the details.

You can receive "Wake Up Call" in your email inbox at the moment we publish it to the site. Just click here and provide us with your email address. We respect your privacy, and never share your information with third parties.

Check back in later this morning, as "Today's Morning Coffee" will outline in greater detail the day's activity in overseas and commodity markets, and provide economic data & analysis and stock specific news. As Valentine's Day approaches, please consider our sponsors for your gifting needs. (disclosure)