U.S. stock index futures are slightly lower this morning following a strong earnings report from Apple (AAPL) Tuesday after the closing bell. Investors are awaiting results from Goldman Sachs Group Inc (GS). Futures on the Dow Jones Industrial Average dropped 3 points to 11,808.00, while S&P 500 futures declined 2.20 points to 1,292.50. Nasdaq 100 futures fell 0.75 point to 2,330.00.

U.S. stocks closed higher yesterday after better-than-expected manufacturing data. The Dow Jones Industrial Average gained 0.43%, while the S&P 500 rose 0.14%. The Nasdaq 100 moved up 0.38%.

Citigroup, Inc. (C) could have done better. Revenue from bond trading took a big hit. John Gerspach, Chief Financial Officer acknowledged that fixed income was weak and needs fixing.

Citi's profit was $1.3 billion compared with the year earlier loss of $7.6 billion. Revenue more than tripled to $18.4 billion from $5.4 billion a year ago. However it fell 11% from the third quarter. Citi has been aggressive in hiring more bankers causing expenses to rise. Earnings per share were four cents compared with a loss of 33 cents a year ago, as reported in the Wall Street Journal.

Despite some concerns out of China about putting on the brakes too hard, international market strength helped the U.S. markets today. There is also a continued hope of higher guidance coming from companies reporting this week during earnings season.

Here are today's unofficial closing bell levels:

Dow Jones: 11,837.93 +50.55 (0.43%)
S&P 500: 1,295.02 +1.78 (0.14%)
Nasdaq: 2,765.85 +10.55 (0.38%)

Top Analyst Calls

U.S. stock futures are mostly higher this morning as investors await earnings reports from several companies. However, shares of Apple Inc (AAPL) dropped in pre-market trading. Futures on the Dow Jones Industrial Average rose 37 points to 11,762.00 and S&P 500 futures gained 2.20 points to 1,292.20. Futures on the Nasdaq 100, however, dropped 12.50 points to 2,307.50.

U.S. markets were closed on Monday for the Martin Luther King Day holiday. Stocks closed higher on Friday, with the Dow gaining 55.48 points, or 0.47%.

I have already gone on record this year saying that financial companies and insurance stocks are going to continue to rebound. In my previous two posts Chasing Value: 2011 Stock Picks -- 5 of 11 and Chasing Value: 2011 Stock Picks -- 6, 7, 8, 9, I included several financial institutions. Today I add an insurance company.

The industry got whacked hard for many reasons. For one, it makes a significant amount of profit by investing its float, and like every other investor, the industry lost a pile of money in the financial crisis. It was embroiled more directly than some industries, as several insurers are affiliated with banks. Finally the housing crisis meant disruption to payment streams by homeowners who were delinquent on more than their mortgages.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"After two years of economic declines, even the small uptick in growth we are starting to see should be a tonic for America's battered banks," says Jim Powell.

The editor of Global Changes & Opportunities Report explains, "Of the major U.S. banks, I think Citigroup (C) offers investors the most promise; as such, I am selecting the stock as my top pick for 2011.

Here are the next four of my 2011 picks. I am behind schedule, after publishing the first 5 earlier in the week (see: Chasing Value: 2011 Stock Picks -- 5 of 11). This year instead of starting completely anew, I am adjusting my 2010 picks. There is no sense in abandoning good ideas just because the calendar turned a page.

You will actually find support of running themes I have been writing about over the past few months. One of these is the idea of making a contrarian investment in a basket of stocks that have been both scalded and scolded in the headlines. Six stocks were included in such a group that I called the "toxic stocks" (see: Chasing Value: Toxic Stock Update #3 -- BAC, BP, C, GE, GS, RIG).

Could a stock that you made 1,100% on still have room to run? Yes, it is possible. In particular if it had a near death experience as a penny stock for a while.

That is the case with Newcastle Investments (NCT), the CMBS lender and real estate investment company that reached a recent high of $7.10 and has settled back down, most recently hovering between $6.70 to $7.00. It closed Thursday December 23 at $6.71.

To paraphrase Mark Twain "The reports of our death are greatly exaggerated". The world economy has been in shambles for a few years now, and our nation has much work ahead of it. 2010 was an improvement over 2009 and I believe 2011 will show further improvement.

There are lots of ideas running through my mind as I consider where the economy might be heading in 2011. What opportunities lay in front of us waiting to be picked up or passed over? Just five trading days left, and market activity will slow down except among fund managers making adjustments for tax purposes or window dressing. You should examine your tax situation, too.

Stocks hit what appears to be a 2-year high on the DJIA and NASDAQ today as economists and allocation experts keep raising targets for 2011. The jobless claims data was not enough to unravel markets and Moody's issuing additional warnings on Spain and Greece failed to dash the ambitions of the bulls. Even after bond yields challenged 7-months highs briefly this morning and even after more insider trading arrests were announced, the bulls still won.

Here were today's unofficial closing bell levels:

Dow Jones 11,499.25 +41.78 (0.36%)
S&P 500 1,242.87 +7.64 (0.62%)
Nasdaq 2,637.31 +20.09 (0.77%)

Top Analyst Upgrades & Downgrades

In the middle of the summer with the stock market smoldering from the economic aftershocks of the BP (BP) oil spill, I decided to post a contrarian story emphasizing a very common refrain among value investors, "my pal Warren" being head of the class: buy on fear (sell on greed). This notion is continuing to work for what I called the toxic stock portfolio.

This is the third update to my ranting five months ago that six of the most reviled and most highly traded stocks featured by daily bad press as a group would outperform the overall market. It has, with the big winner rising from being one of the biggest losers.

Nobody knows what the future holds. But there are a few things shaping up that suggest certain things will most likely happen. Here are some of the major ones.

Interest Rates: Low at the beginning of the year, then headed higher for a long time. If you have an adjustable rate mortgage and you're still paying it, it's the perfect time to get it refinanced, if you can qualify. Interest rates are definitely going up; it's just a matter of when. As long as the Fed is pumping money in (QE2 is targeted with $800 billion .... with the possibility of more behind it), rates will stay low, unless investors think inflation will get way out of hand. Then rates will go higher no matter what the Fed does as investors sell longer term bonds to beat the coming inflation. Initially, rising interest rates will be bullish as they are a precursor to a healthy economy. But that bull will morph and become a bear when rates start jumping as the Fed tries to get ahead of inflation. Tricky business. Investors will do well to have floating rate assets and fixed rate liabilities.

The markets were reacting favorably all day after Ireland's expected budget approval and after a compromise was reached on taxes here in the United States. At least that was the case before the last hour. Two issues hit today. First was a concern when Nancy Pelosi and others voiced disappointment over an Obama-Republican compromise that extended the Bush-era tax cuts by another two years. Second was an expanded insider trading probe involving more hedge funds and other institutions. That literally took the close-to-triple-digit gains down to flat before the market bounced. A rise was seen in consumer credit when expectations were for a drop.

Here were today's unofficial closing bell levels:

Dow Jones 11,359.16 -3.03 (-0.03%)
S&P 500 1,223.75 +0.63 (0.05%)
Nasdaq 2,598.49 +3.57 (0.14%)

Top Analyst Calls

U.S. stock futures are higher this morning as President Barack Obama agreed to a deal with the Republican Party in order to extend tax cuts for the coming two years for all Americans. Futures on the Dow Jones Industrial Average advanced 76 points to 11,429 and S&P 500 futures rose 10.20 points to 1,232. Nasdaq 100 futures gained 19 points to 2,210.

U.S. stocks closed lower on Monday, with the Dow index falling 0.2%.

No major U.S. economic data are due to be released today.

Fear gripped Wall Street on September 29, 2008, when the U.S. House of Representatives failed to pass the bailout package. On that day alone, banks borrowed a record $155.8 billion.

The Fed had set up a lending facility called the Primary Dealer Credit Facility (PDCF) to lend money to banks. As the crisis spread, borrowing increased almost daily. The Wall Street Journal (subscription required) lists day-by-day borrowings: