Wake Up Call - Feb 7

Good Morning. At 9:20 a.m. EST, major U.S. markets are indicating a higher open for stocks. While a strong report by Cisco Systems drives the NASDAQ, the overall market also seems to favor the positive productivity and labor cost data released this morning over a warning from Philly Fed President Plosser that a rate hike may be necessary this year to contain inflation.

Asia:
Hang Seng Index +0.12%; Shanghai/Shenzhen 300 +2.32%; NIKKEI 225 -0.66%; BSE SENSEX 30 +1.14%; KRX 100 -0.23%; Ho Chi Minh +0.4%

U.K. & Europe:
DJ STOXX 50 Index +0.09%; FTSE 100 +0.13%; CAC 40 +0.32%; DAX +0.54%; Russian RTS Index -0.28%

KEY HEADLINE NEWS

• WSG Predicted: While speaking today before the Philadelphia Chamber of Commerce, Philly Fed President Charles Plosser indicated that the Fed may have to raise interest rates to keep inflation in check as the economy resumes growth.
• Contradicting Plosser, fourth-quarter worker productivity was reported today stronger than expectations, while labor costs grew less than expected. Though the measure will be adjusted on March 6th, this first reading is reassuring to Fed policy makers.
• Cisco Systems (CSCO) is up over 5% in pre-market activity, as the company exceeded the Thomson Financial EPS consensus by two cents, while raising revenue projections.
• Weekly mortgage applications fell last week despite lower interest rates.
• India projects 9.2% growth for its economy in 2007, after revising 2006's result to 9%, from 8.4% previously.

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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. (disclosure)