February is traditionally weak for the market, and the month's first day of trading lived up to its reputation. The Dow fell more than 300 points Monday, on what was Janet Yellen's first day as chair of the Federal Reserve.
Global markets followed the U.S. lead and sold off overnight in Europe and Asia, led by a 610-point loss on Japan's Nikkei 225, a decline of more than 4%. Tuesday's trading could offer Wall Street a reversal as U.S. futures were recently positive in premarket trading, though off their earlier highs.
Late Monday, Action Alerts PLUS holdings Hartford Financial (HIG) and Yum! Brands (YUM) posted earnings that surpassed Wall Street expectations. Yum!, which operates fast-food chains KFC and Pizza Hut, beat on the bottom line and met views on the top line. Meanwhile, insurer Hartford's net income was $0.04 better than consensus.
AAP stocks Eaton (ETN) and Emerson Electric (EMR) lead this morning's reports. Emerson's top- and bottom-line results were in line with estimates, while power-management company Eaton bested earnings view by $0.02 per share on unsurprising revenue.
In other earnings news:
- Michael Kors (KORS) shares were up 20% in premarket trading on a huge earnings beat.
- Video-game maker Take-Two Interactive (TTWO) beat net income and sales estimates.
- Archer Daniels Midland's (ADM) net income surprised to the upside but missed revenue views.
- Oil giant BP (BP) said profits fell sharply in the fourth quarter, weighed down by costs related to the Gulf of Mexico oil spill, but met analyst estimates.
- Boston Scientific (BSX) surpassed bottom-line expectations by $0.08.
Richmond Fed President Jeffrey Lacker will talk about the economy in Virginia at 8:30 a.m. ET, and Chicago Fed chief Charles Evans will discuss monetary challenges for 2014 in Detroit at 12:30 p.m. ET.
The sole highlight on the economic calendar is the factory-orders report at 10 a.m. ET.