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

  • Israeli leader Benjamin Netanyahu won his election but was punished. His Likud party and its ally Yisrael Beitenu won 31 of 120 seats in parliament, but lost 11 of its previous seats. Meanwhile, UK prime minister David Cameron says he will hold a referendum on Britain's membership in the EU if a Conservative government is elected.

  • In earnings news, Apple is expected to report Q4 earnings of $13.41 per share after the closing bell. McDonald's is expected to report earnings of $1.33 per share, and consensus is for Netflix to announce a loss of $0.60 per share.

  • Coach shares are down over 9 percent in pre-market trading after a weak earnings report was leaked. Earnings came in at $1.23 per share missing expectations of $1.26 per share. Same store sales were down 2 percent. 

  • Spain's recession deepened in the fourth quarter, with GDP contracting 0.6 percent from the previous quarter, according to the Bank of Spain. Prime minister Mariano Rajoy's fifth austerity package to cut the budget deficit hurt economic growth.

  • Google beat estimates, reporting non-GAAP earnings of $10.65 per share, on revenue of $14.42 billion after markets closed on Tuesday. Fourth quarter profits were up 6.7 percent as Google continued to grow its ad revenue.

  • Meanwhile, IBM also beat expectations reporting earnings of $5.39 per share, on revenue of $29.3 billion. It also issued full year guidance for 2013 earnings of $16.70 per share, above expectations for $16.64. 

  • The FHFA home price index for November is out at 9 a.m. ET. Analysts polled by Bloomberg are looking for a 0.7 percent month-over-month increase in the home price index.