10 Things You Need To Know Before The Opening Bell

Eric Platt

Aug. 21, 2012

Jason Merritt/Getty Images

Good morning. Here's what you need to know.

• Markets in Asia were mixed in overnight trade, with Japan's Nikkei off 0.2 percent. European exchanges are largely positive while U.S. futures point to a higher open.

• Spain sold €4.51 billion in short term Treasury bills overnight, slightly above the auction's maximum target. The average yield on sales of both 12- and 18-month notes declined to 3.070 and 3.335 percent, respectively.

• The U.K. swung to a surprise budget deficit of £557 million ($878 million) in July. Economists surveyed by Bloomberg had forecast a £2.2 billion surplus. Government spending rose 5.1 percent as corporate taxes fell more than 19 percent.

• Japan's all industry activity increased 0.2 percent sequentially in June, in line with expectations. The data showed that industrial production rose 0.4 percent. 

• The Reserve Bank of Australia said the country's economy continued to grow at a steady pace and inflation was in check. The central bank said it would not alter its key cash rate from the current 3.5 percent. 

• Warren Buffett's Berkshire Hathaway terminated credit-default swaps insuring some $8.25 billion of public debt, adding to concerns that the risks associated with municipal debt are increasing. The closed position ends more than five years of Buffett's bullish bet that states would continue to pay their debts on time. 

• Best Buy is expected to report quarterly results for its second quarter at 8:00 a.m. today. Analysts polled by Bloomberg forecast the retailer will post earnings of $0.31 a share on revenues of $10.6 billion — both representing declines from the year ago and prior quarter.

• Shares in Urban Outfitters rallied more than 17 percent after the closing bell yesterday, following the retailer's better-than-expected earnings report. The company earned $0.42 a share as revenue increased 11 percent to $676.3 million. Analysts were looking for earnings of $0.33 a share.

• Dreamworks Animation signed a five year distribution deal with Twentieth Century Fox. Fox won the deal over Paramount Pictures, and will earn eight percent of all revenue on the films.

• Iran is trying to use Armenia as a way to funnel money to the country as sanctions tighten around it, Reuters' Louis Charbonneau reports.