Here are 10 things you should know for Tuesday, Jan. 21:
1.-- U.S. stock futures were rising Tuesday amid a stream of corporate earnings reports and after China's central bank said it would pump extra liquidity in the financial system.
The Shanghai Composite Index rose 0.9% to close at 2,008.31. Tokyo's Nikkei 225 rose 1% to finish Tuesday's session at 15,795.96.
European stocks were rising in early trading.
2.-- The economic calendar in the U.S. Tuesday is bare.
3.-- U.S. stocks on Friday closed mixed, weighed down by a round of quarterly reports that came in shy of expectations.
The S&P 500 fell 0.39% to close at 1,838.70 while the Dow Jones Industrial Average rose 0.25% to 16,458.56. The Nasdaq lost 0.5% on Friday to close at 4,197.58. The S&P 500 dipped 0.2% for the week, while the Dow and Nasdaq climbed 0.13% and 0.55%, respectively.
Markets in the U.S. were closed Monday for the Market Luther King Jr. holiday.
4.-- China's Lenovo is in talks to buy IBM's (IBM) low-end server business, The Wall Street Journal reported, citing a person familiar with the matter.
The talks revive negotiations that fell apart last year over valuation, according to the Journal.
Lenovo said in a statement to the Hong Kong Stock Exchange Tuesday that it was in preliminary talks about a potential acquisition, without saying whether the talks involved the server business.
For Lenovo, which is a minor player in servers, a deal with IBM would create a new source of growth amid weak global demand for desktop and laptop PCs, the Journal noted.
5.-- IBM is forecast by Wall Street to report after Tuesday's closing bell fourth-quarter earnings of $5.99 a share on revenue of $28.25 billion.
IBM said last week it plans to invest more than $1.2 billion to expand its cloud services operations.
IBM shares rose 0.3% to $190.60 in premarket trading Tuesday.
6.-- Telecommunications giant Verizon (VZ - Get Report) reported earnings of $5.07 billion in the fourth quarter, as it added more subscribers to its wireless network.
Adjusted earnings in the quarter were 66 cents a share; analysts were looking for 65 cents.
Revenue rose 3% to $31.07 billion from $30.05 billion. Services revenue rose 8% to $17.7 billion. Verizon said it added 1.7 million net retail wireless connections during the quarter.
Verizon shares rose 0.9% to $48.80 in premarket trading.
7.-- Johnson & Johnson (JNJ), the consumer goods and pharmaceuticals maker, said fourth-quarter profit rose 19%.
Earnings were $3.52 billion, or $1.23 a share, up from $2.57 billion, or 91 cents a share, a year earlier.
Excluding one-time items, adjusted earnings were $3.56 billion, or $1.24 a share.
Revenue rose 4.5% to $18.36 billion.
The stock rose 0.6% in premarket trading to $95.61.
The carrier said net income excluding items was $558 million, or 65 cents a share. Analysts surveyed by Thomson Reuters had estimated 63 cents. Revenue rose 6% to $9.1 billion. Analysts had estimated $9 billion.
Including an $8 billion non-cash gain associated with the reversal of the company's tax valuation allowance, net income was $8.5 billion.
In premarket trading Tuesday, Delta shares were up $1.08 to $32.15.
9.-- A South Texas police chief said two Mexican citizens who were arrested at the border used account information stolen during the Target (TGT) security breach to buy tens of thousands of dollars' worth of merchandise. But a federal official said later there currently was no connection between the arrests and the retailer's credit card data theft, The Associated Press reported.
10.-- Amazon (AMZN), the online retail giant, filed a patent for a shipping system designed to cut delivery times by predicting what buyers are going to buy before they buy it, according to reports.
The patent, which was filed in August 2012 and granted last month, describes a method for what Amazon calls "anticipatory shipping," according to a report from TechCrunch.
-- Written by Joseph Woelfel
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