What to watch, courtesy of Yahoo! Finance's Elizabeth Trotta:
Good morning,
Futures followed world markets lower as investors worry about Greek debt crisis contagion amid confusion over whether or not the nation will get bailout cash necessary to avoid default. The confusion comes after relations between Greece and its partners hit on Wednesday what Reuters has called a new low. On Thursday, Spain confirmed that its economy shrank 0.3% in the final quarter of 2011, amid increasing likelihood it will slip back into recession. And Moody's warned that it may downgrade the credit ratings of 17 global and 114 European financial institutions as the affects of the debt crisis ripple throughout the global financial system.
In the U.S., RealtyTrac reported that foreclosures rose by 3% in January over December, with one in every 624 U.S. households involved in some sort of foreclosure filing. But filings were still down 19% vs. a year ago. More data on the housing situation -- in the form of housing starts and building permits -- will be available later in the morning in addition to weekly jobless claims, wholesale inflation and the Philadelphia Fed index. (See below for a complete list)
The consumer price index, the most widely cited gauge of inflation, will be released on Friday. Also for the watch list, a bill is expected to go to vote Friday after a joint House-Senate panel agreed to terms for the payroll tax cut extension Wednesday.
Despite the scores of unemployed, the National Tooling and Machining Association says there is a 'critical shortage of machinists,' people who would fill crucial manufacturing jobs, that's creating a problem in the U.S.
In corporate news, Tokyo prosecutors arrested seven men including ex-bankers and the former president of Olympus, Tsuyoshi Kikukawa, on suspicion of violating the Financial Instruments and Exchange Law in the $1.7 billion accounting fraud that broke in 2011.
Elsewhere, the World Gold Council said in its annual report that China is poised to overtake India to become the world's biggest gold market this year as rising incomes power demand and a weak rupee hurts Indian purchases.
Economic data to watch for...
8:30 initial jobless claims
8:30 housing starts
8:30 building permits
8:30 ppi
10 Philadelphia Fed index
Friday: Consumer Price Index, Leading Indicator
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