U.S. MARKET AVERAGES

U.S. stock futures posted strength in pre-market trading, pointing to a slightly higher or flat market opening on retreating oil prices, better-than-expected earnings report from Ford Motor and deal news.

The previous week finished with a large-scale sell-off, driven by surging oil prices as well as disappointing reports from Citigroup, General Electric and Motorola. It marked the biggest loss in three years with the Dow down 2% and the Nasdaq falling 2.4%.

On Monday earnings reports will continue to be in focus with a special interest in guidance.

Ford Motor (F: chart) posted Q4 profit increase on strength in its finance arm and the sale of its rental car unit Hertz Corp. Quarterly results exceeded analyst estimates.

Bank of America (BAC: chart), the No. 2 U.S. bank, posted Q4 2% decline in net profit, reflecting loan losses and weaker trading results.

Credit card and travel services company American Express Co., a Dow component, is scheduled to report results.

In deal news, a group including grocery store operator Supervalu Inc (SVU: chart) and drug store chain CVS Corp. (CVS: chart) agreed to buy rival retailer Albertsons Inc. (ABS: chart) for $17.4 billion in cash and stock.

Polo Ralph Lauren Corp. (RL: chart) agreed to buy back its Polo jeans business from Jones Apparel Group Inc. (JNY: chart).

Standard & Poor''s 500 index futures were up 1.90 points, but were nearly even with fair value. Nasdaq 100 index futures were up 2.50 points, and Dow Jones industrial average futures were up 8 points.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks fell across the region, reflecting an oil price rise to $69 a barrel and cautiousness following the steep declines on Wall Street. The Nikkei recovered from earlier lows to close down 1.2%. Among other regional markets, Taiwan’s Weighted index dropped 1.7%, Hong Kong’s Hang Seng slipped 1.4%, and South Korea’s Kospi fell 1%.

European stocks traded in the negative at mid-day, hurt by disappointing earnings reports, surging oil prices and heavy losses on Wall Street Friday. The German DAX 30 slipped 0.6%, the French CAC 40 dropped 0.9%, and London’s FTSE 100 fell 0.2%.

OIL, METALS, CURRENCIES

Crude oil prices retreated after hitting $69 a barrel on supply concerns, raised by problems with Russia’s natural gas exports and the continuous tensions in Nigeria and Iran. Light sweet crude for March delivery fell 88 cents to $67.60 a barrel. London Brent declined 61 cents to $65.82.

European gold prices declined after hitting fresh 25-year highs Friday. In London gold traded at $558.50, down from $559.80. In Zurich the precious metal traded at $558.25, down from $561.35. In Hong Kong gold fell $1 to close at $556. Silver opened at $9.04, down from $9.06.

The U.S. dollar traded lower against other major currencies. The euro was quoted at $1.2278, up from $1.2075. The dollar bought 114.25 yen, down from 115.40. The British pound was quoted at $1.7829, up from $1.7638.

EARNINGS NEWS

Ford Motor Co., (F: chart), automotive company, reported Q4 earnings of 8 cents a share, up from 6 cents a share a year-ago, beating analyst estimate for a profit of penny a share. If not for a number of items, the company posted earnings from continuing operations of 26 cents a share, down from a year-earlier equivalent profit of 28 cents a share.

Bank of America Corp, (BAC: chart), banking services, reported that its Q4 profit dropped to 93 cents a share, down from 94 cents a share in the year-ago period on costs related to its recent acquisition on credit card firm MBNA, increased provision expense and lower trading results. If not for merger and restructuring costs, it gained 94 cents a share, missing analyst estimate of $1.02 a share. The company earned $3.85 billion, or 94 cents a year ago in the year ago quarter. Quarterly revenue was $14.12 billion, up 3%.