Before the bell 1-19-07: Stock futures get the blues

Stock futures are negative in early morning trade, pointing a similar start for the stock markets especially tech stocks following IBM's 5% drop in after-hours trading after the company reported earnings that beat forecast.

Unlike the past two days, not much economic data is scheduled for today. The only data point to be reported at 10:00 a.m. is the preliminary January Michigan sentiment index, which economist forecast would tick up.

Oil prices fell today in Asia after the U.S. Energy Department said U.S. crude inventories rose by the most in more than four years, dipping briefly below $50 a barrel. Oil rebounded slightly since.

In corporate news:

General Electric Co. (NYSE:GE) reported fourth-quarter earnings this morning, posting growth across all units except GE Industrial. Net income came in at $6.58 billion, or 64 cents per diluted share, compared with $3.16 billion, or 56 cents per diluted share, a year earlier. Analysts had expected profit of 64 cents per share, according to Reuters Estimates.

Motorola Inc. (NYSE:MOT) posted this morning a lower fourth quarter profit due to weakness in its handset business. Profit fell to $624 million, or 25 cents a share, from $1.2 billion, or 47 cents a share, a year earlier. Revenue rose to $11.8 billion from $10 billion. Motorola had recently warned. Analysts lowered consensus estimates after the warning to 25 cents per share.

Citigourp Inc. (NYSE:C) reported this morning fourth-quarter results with profit falling from a year earlier. Net income fell from a year earlier when the company recorded one time gain. From continuing operations earnings actually rose to $5.13 billion, or $1.03 per share, from $4.97 billion, or 98 cents a share. Revenues were $23.83 billion in the fourth quarter. Analysts had projected earnings of $1.01 a share on revenue of $22.45 billion.

International Business Machines Corp. (NYSE:IBM) reported earnings after the close yesterday. IBM beat expectations with higher profit and revenue than forecast, but shares dropped 5% in after-hours trading. This isn't the first time this earnings season that a tech company beats expectations and yet is taken down by investors.

In other corporate news:

In an attempt to stop defections to cable rivals, AT&T Inc. (NYSE:T) said it will let subscribers who pay at least $110 a month make unlimited calls between their mobile and home phones.

CNL Hotels & Resorts Inc., is agreeing to a takeover offer from Morgan Stanley's (NYSE:MS) real estate arm valued at about $3.13 billion, or $20.50 per share in cash.

General Electric Co. (NYSE:GE) yesterday finalized its purchase of Abbott Laboratories Inc.'s (NYSE:ABT) diagnostics business units for $8.13 billion in cash.