Asian markets are up slightly early in the trading session, chasing modest gains in the U.S. markets on Tuesday.

Japan’s Nikkei is up 0.6%.

Korea’s Kospi is up 0.7%.

Australia’s S&P/ASX is up 0.2%.

The stock market leaders are the Japanese automakers, which are being driven by Toyota’s announcement that it raised full year earnings guidance.

Toyota is up 3.7%.

Mazda Motor is up 4.4%.

Honda Motor is up 1.9%.

Mitsubishi Motors is up 1.1%.

This rally is occuring despite the ongoing stalemate in Greek debt swap talks, which seem to be making little progress and could potentially push the country to a default.

U.S. futures are only modestly lower, with Dow futures down 8 points.

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• European Stocks Are Flat As Global Rally Takes A Break
• Egypt Stocks Dive After Soccer Riots Leave 74 Dead
• RALLY PAUSES AHEAD OF FRIDAY’S BIG JOBS REPORT: Here’s What You Need To Know

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Ultra-brief note here from Nomura’s Zhiwei Zhang :

According to the China Securities Journal, China’s electricity consumption in January fell by 7.5%. We estimate this may be the first decline since 2002 (excluding the financial crisis period in 2008-09), indicating industrial production may have slowed sharply in January.  

They don’t have any more answers here at the moment, except they say that if you’re thinking it has something to do with the New Year, then you are incorrect.

For now it’s just one of those things that make you go hmm…

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• Nomura Pours Cold Water On That ‘Strong’ Chinese PMI Report
• Asian Markets Are Mixed After Chinese PMI Beats Expectations
• CARLYLE’S RUBENSTEIN: If I Could Put More Money Into China, I Would

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Stats and politics guru Nate Silver tweeted out the following:

If this is roughly accurate — and 3%+ GDP is the most likely — then will be a nice acceleration from last year.

He also tweeted: Obviously big risks from Europe and oil shocks, but the recovery story has become pretty coherent based on US data.

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See Also:

• Here Are The Key Market Moving Events For Thursday, February 2, 2012
• This Terrifying Chart Shows What Rising Health Care Costs Could Do To Sovereign Ratings
• Here Are The Key Market Moving Events For Friday, February 3, 2012

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Wednesday continues a busy earnings week, while data streams out of Asia and Europe. Nonetheless it will be a relatively quiet day, as Groupon, Time Warner, and Visa report. There are no major economic reports scheduled for release in the U.S., although mortgage applications will be announced.

Here’s what you need to know.

• Japan starts the day off early with bank lending at 6:50 p.m. EST on Tuesday evening. Bank lending is seen expanding by 0.6 percent in January from year-ago levels.
• At midnight EST, the Pacific nation remains in the light when economic outlook is released. The Eco Watchers survey, which measure both outlook and present conditions, is expected to show improvement across both metrics. Outlook is seen moving 90 basis points higher to 45.5. A reading above 50 indicates optimism. 
• Announcements move to Europe at 1:45 a.m. EST, when Switzerland releases unemployment data. The seasonally adjusted reading is forecast to remain at 3.1 percent.
• At 2:00 a.m. German exports will be released, with expectations for the headline number to decline 1.0 percent after a 2.5 percent gain in November. Imports are seen expanding by 0.8 percent in December.
• French Business sentiment is forecast to remain flat at 96 for January. The Bank of France will make the announcement at 2:30 a.m. EST. 
• Industrial production figures will be released for Spain and Turkey at 3:00 a.m. EST. Spain’s output is seen 5.7 percent below year-ago levels, while Turkey sees a 2.8 percent increase from its December 2010 reading.
• Also at 3:00 a.m., the Czech Republic will announce unemployment. The jobless rate is forecast to increase to 9.1 percent in January from an 8.6 reading in the preceding period.
• Chile’s Consumer Price Index will be released at 6:00 a.m. EST. Economists polled by Bloomberg expect CPI to increase 0.2 percent month-on-month in January, following a 0.6 percent jump in December. Brazilian CPI will follow later in the day.
• The only major U.S. announcement on the docket is MBA mortgage applications, which will be released at 7:00 a.m. EST. Mortgage applications last fell by 2.9 percent when data was announced.
• Closing out the day are early data releases in Asia and the Pacific, which could impact after-hours trading in the U.S. At 4:00 p.m. EST, South Korean PPI is scheduled for release, with New Zealand unemployment following at 4:45 p.m. EST. The jobless rate is seen declining 10 basis points to 6.5 percent in fourth quarter of 2011. 

U.S. corporates reporting quarterly results on Wednesday include names like Groupon, Time Warner, and Visa. Below, a roundup of tomorrow’s big announcers.

Virgin Media (VMED): $0.15
Time Warner (TWX): $0.87
Cognizant Technology Solutions (CTSH): $0.77
Moody’s (MCO): $0.49
Reynolds American (RAI): $0.69
Madison Square Garden (MSG): $0.24
CVS Caremark (CVS): $0.89
Sprint Nextel (S): -$0.38
Ralph Lauren (RL): $1.67
IntercontinentalExchange (ICE): $1.69
Computer Sciences (CSC): $0.58
News Corp (NWSA): $0.34
Fidelity National Financial (FNF): $0.19
Cisco Systems (CSCO): $0.43
O’Reilly Automotive (ORLY): $0.85
Plains All American Pipeline (PAA): $1.50
Whole Foods Market (WFM): $0.60
Visa (V): $1.45
Prudential Financial (PRU): $1.76
Fifth Street Finance (FSC): $0.28
TripAdvisor (TRIP): $0.24
Wyndham Worldwide (WYN): $0.44
Level 3 Communications (LVLT): -$1.09
Groupon (GRPN): $0.03

Consensus estimates provided by Bloomberg. 

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See Also:

• Here Are The Key Market Moving Events For Monday, February 6, 2012
• Here Are The Key Market Moving Events For Tuesday, February 7, 2012
• Here Are The Key Market Moving Events For Friday, February 3, 2012

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Ramit Sethi is a New York Times best-selling author and creator of one of our favorite personal finance sites, I Will Teach You to Be Rich. In his weekly video Q&A, Ramit answers common questions about personal finance, careers, and more. This week: What’s the best approach for paying down debt while also investing your money?

Chris from San Francisco asks: “I’m 30, my student debt amount is just below the amount of my annual salary (5.375% interest). Should I be trying to eliminate this debt at all costs or continuing to save for retirement, emergency, living life and pay off debt equally?”

There are three potential answers to this question:

• The mathematical answer is to put your money where it will have the biggest impact. If your debt interest rate is lower than what interest rate you can expect from investing, pay the minimum on the debt each month and invest the rate.
• The emotional answer is that for many people, they hate having debt of any kind, so even if they’re paying off low-interest debt, it still makes sense for them.
• The hybrid approach is to split the difference: Pay off some of the debt and invest some. A nice compromise.

Many people scoff at the emotional or hybrid solutions, not understanding that personal finance is about more than simple math. But it’s clear that psychology and emotions play a huge role in money. If they didn’t, we’d all spend less than we earned and construct a perfect asset allocation.

If you feel strongly about the mathematical or emotional answer, your answer is clear. For everyone else—which turns out to be most of my readers—I suggest a hybrid approach.

One more thing: Surprisingly, the most important step isn’t finding the optimal balance between paying off debt and investing. It’s automating your money so you don’t have to think about either. Six months from now, you’ll be shocked at how much you’ve paid off and invested.

Ramit Sethi is a New York Times best-selling author who writes about personal finance, psychology, and careers. Learn the word-for-word scripts to negotiate your salary, lower your cable fees, and earn more money at http://www.iwillteachyoutoberich.com/.

Real quick: Here’s why a recession seems unfathomable right now.

With each bullet point we highlight the key word.

1. Consumer credit is booming.

2. Housing starts are on the rise.

3. Vehicle sales are on the rise.

4. Jobs growth is accelerating.

So you’ve got: cars, jobs, houses, credit.

‘Nuff said.

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See Also:

• Paul Krugman Makes The Bull Case For The Economy In One Simple Paragraph
• ISM SERVICES REPORT CRUSHES EXPECTATIONS AT 56.8
• December Factory Orders MISS Expectations, Growing 1.1%

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Another day of slow news. U.S. economic data looked positive but negotiations to save Greece continue to drag on.

First, the scoreboard:

Dow: 12,878 pts., +33.07, +0.26%

S&P 500: 1,347 pts., +2.72, +0.20%

NASDAQ: 2,904 pts., +2.09, +0.07%

Now for today’s top stories:

• European markets closed mixed as negotiations dragged on over the terms of the second Greek bailout. The DAX ended down -0.16 percent while the CAC 40 closed up +0.18 percent. The euro hit a 2012 high against the dollar.

• Greek politicians struggled to strike a deal on new austerity measures that the troika has demanded in exchange for the next round of bailout funds. Reports that a draft was nearing approval led to optimism early, however that feeling faded as news surfaced that leaders would meet again tomorrow because they had not yet penned a resolution. Greek PM Lucas Papademos also met with financial sector representatives led by Charles Dallara today to discuss private sector involvement in the bailout.

• U.S. economic data beat expectations across the board today. Most importantly, consumer credit crushed expectations, expanding by $19 billion in December. Analysts only expected an expansion of $7 billion. JOLT job openings also beat consensus, jumping from 3.12 million to 3.38 million in December. Economic sentiment also improved to 49.4 in January from 47.5—almost a positive outlook.

• The 9th Circuit Court struck down Prop 8—a California law which banned gay marriage. The decision did not lift the stay on gay marriages that is currently in place. Journalists are already speculating that the legal battle over the law will continue in the Supreme Court.

• Coca-Cola beat earnings expectations, with EPS coming in at $0.79 versus estimates of $0.77 for the fourth quarter. That was based on significant emerging market growth, with volumes growing 20 percent in India. The brand itself saw growth of 5 percent for the year and 3 percent for the quarter.

• Walt Disney Co. beat earnings expectations but missed revenue estimates, reporting just after the bell. EPS came in at $0.80 versus estimates of $0.70, and revenue amounted to just $10.78 billion in comparison to estimates of $11.19 billion for the first quarter. The company saw a 16 percent drop in studio entertainment revenue in the quarter.

• Right before the close, Scott Thompson was named as the new CEO of Yahoo, and Chairman Roy Bostock will not stand for re-election. Four board members will step down, and two new members have been named to replace them.

• CITI’S BUITER—There’s A 50 Percent Chance Of A Greek Exit From The Eurozone And Here’s How It Would Happen >

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• STOCKS SURGE WHILE EVERYONE WAITS FOR FACEBOOK: Here’s What You Need To Know
• RALLY PAUSES AHEAD OF FRIDAY’S BIG JOBS REPORT: Here’s What You Need To Know
• Rally Builds Amid Signs Of European And Chinese Growth

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Hedge fund manager and writer Doug Kass just sent out a blast titled SELL EVERYTHING.

Why?

Because Roubini is bullish.

From CNBC:

The perennially negative Nouriel Roubini – nicknamed Dr Doom for his usually critical views – is turning bullish. You read that right, Roubini is betting on additional stock market gains.

“We’re a believer; we’re celebrating. We think the rally has legs,” explains Gina Sanchez, Roubini’s director of equity and allocation strategy.

You’ve been warned.

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• Apple Might Lose A $1.6 Billion Lawsuit For Using The Word ‘iPad’
• DAVID STOCKMAN: It’s True, The BLS Data Is Made Up
• The Catholic Church Has Launched A Fight Against Obama That’s Unprecedented In American History

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It’s hard to think that the economy is going into any kind of recession with numbers like these. For the second straight month we just got a HUGE number on consumer credit

Cnosumer credit expanded by $19 billion in December. That’s far more than the $7 billion that was expected by economists.

Revolving consumer credit (credit cards) grew by $4.1 billion sequentially, and is basically flat from last year again (up barely).

One more point on this: A lot of people think that US consumer have too much debt, and that a big number here is “bad” and we could imagine that being true. But if we’re talking about cycles, and whether the economy is in rebound or recession mode, re-expanding credit is OBVIOUSLY what you want to see.

Read the full announcement here.

This chart from Reuters’ Soctty Barber basically tells it all.

———–

It’s a very slow week economic data-wise, but this is the biggie…

Consumer credit for December comes out at 3:00 PM ET.

Analysts expect $7 billion worth of new credit for the month. That’s down from $20.3 billion in the month before.

Remember, last month REVOLVING consumer credit registered flat year over year growth for the first time since the bust.

We’ll have the number here LIVE.

Here’s that revolving consumer credichart from last month.

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• Apple Might Lose A $1.6 Billion Lawsuit For Using The Word ‘iPad’
• DAVID STOCKMAN: It’s True, The BLS Data Is Made Up
• DOUG KASS: SELL EVERYTHING! EVEN ROUBINI IS BULLISH!

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Groupon reports Q4 earnings after the close tomorrow.

Analysts at Morgan Stanley are expecting relatively good news: revenues above estimates, constrained marketing spending, and better than estimated EBITDA.

Morgan Stanley’s analysts think the stock is fairly priced as it currently is.

The gossip is that hedge fund managers with millions to bet don’t feel the same way.

VC Chris Dixon just tweeted that a hedge fund manager he knows looked into shorting Groupon stock ahead of tomorrow’s earnings, but backed off when he found out the interest rate on borrowing Groupon stock was a whopping 40%.

That is super high. It’s an indication that a lot of money has already been bet on Groupon’s stock ticking downward in the days ahead. 

(That doesn’t mean it’s more likely to dip, of course. Sometimes “the crowd” is very wrong.)

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See Also:

• LivingSocial Lost $558 Million In 2011
• Apple Might Lose A $1.6 Billion Lawsuit For Using The Word ‘iPad’
• DAVID STOCKMAN: It’s True, The BLS Data Is Made Up

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