1. Today could be another low-volume affair considering the advance Q2 GDP release and the latest FOMC directive await on Wednesday.  Even so, the futures market is sunny side up this morning thanks to a rebound in Japan (+1.5%) and China (+0.7%) overnight, some hopeful consumer confidence surveys in the eurozone, and a stream of earnings results that are mostly better than expected.

2. Then again, the futures market might be up this morning simply because the cash market was down yesterday, triggering the market's Pavlovian reflex to buy the dip.

3. Merck (MRK) and Pfizer (PFE) headline the list of reporters this morning.  Both Dow components managed to beat the Capital IQ consensus estimate by a penny (imagine that) while reporting a year-over-year decline in revenue.  

For Merck, revenues dropped 10.6% and the company lowered its FY13 revenue outlook due to currency headwinds.  Pfizer, meanwhile, saw revenues slip 7.1% and reaffirmed its FY13 outlook.

4. Asian markets ended mostly higher. Japan's Nikkei led the way with a gain of 1.5% after shrugging off reports indicating the country's government may lower its 2014 real GDP forecast to 1.0% while cutting nominal GDP expectations to 3.2%.

5. Major European indices hold modest gains across the board. In news, reports indicate the Bank of Italy has begun to investigate balance sheets of eight banks due to worries about worsening asset quality. Elsewhere, the International Monetary Fund has confirmed the next tranche of Greek aid in the amount of EUR1.7 billion. Regional economic data was limited to just a handful of releases. Eurozone Business and Consumer Survey increased to 92.5 from 91.3 (92.6 forecast). Consumer Confidence improved to -17.0 from -18.8 (-17.0 expected) while Industrial Sentiment ticked up to -11.0 from -11.2 (-10.0 forecast). 

6. The May Case-Shiller 20-city Home Price Index rose 12.2% while a 10.5% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 12.1%.

7. En el lado negativo, los oficios del sector energético con una derrota por la mínima del 0,1% en el petróleo crudo negocia un 0,8% a 103,75 dólares por barril. Por otra parte, el sector de los materiales es inferior en un 1,3% como nombres de fertilizantes bajo desempeño después de que el mayor productor de potasa, la rusa OAO Uralkali, se retiró de un cartel de potasa. Potasio (POT 29.02, -8.88) y Mosaic (MOS 40.29, -12.67) son a la vez abajo, cerca de 24,0%.

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8. Las acciones estadounidenses subieron ya que las empresas de Eastman Chemical Co. de Aetna Inc. elevaron sus pronósticos de ganancias y los inversores de todo el año esperaban los resultados de la reunión de política monetaria de dos días de la Reserva Federal.

9. A pickup in second-half earnings will be crucial to move further from here on. Markets will be sensitive to economic announcements again this week and particularly to what the Fed has to say.

10. The Federal Open Market Committee, which has said it may start paring stimulus should theU.S. economy meet the central bank’s forecasts, starts a two-day meeting today. The Fed will probably maintain its benchmark interest rate at 0.25 percent, economists predict. Policy makers will begin to reduce the central bank’s bond-purchase program in September, a Bloomberg survey of economists shows.

11. Home prices  rose in May by the most in more than seven years as the recovery in U.S. residential real estate gained momentum, a report showed today. The S&P/Case-Shiller index of property values climbed 12.2 percent from May 2012, after advancing 12.1 percent a month earlier. The median projection of 31 economists surveyed by Bloomberg called for a 12.4 percent advance.

12. Investors are also watching earnings reports. Of the 302 companies in the S&P 500 that have posted quarterly results so far, 73 percent have exceeded analysts’ estimates for profit and 55 percent have topped sales projections, data compiled by Bloomberg show.

13.  Australia’s dollar weakened as the central bank indicated it may lower interest rates, while commodities fell for a fifth day as metals declined.

14. U.S. consumer confidence probably worsened in July, economists said before a report today, while a gauge of U.S. home prices rose the most in more than seven years.

15. Home prices rose in May by the most in more than seven years as the recovery in U.S. residential real estate gained momentum.

16. Históricamente bajos costos de los préstamos, a la escasez y la mejora del mercado de trabajo están impulsando la demanda de viviendas y llevando los precios hacia arriba. La subida en el valor de las viviendas también está reforzando las finanzas del hogar, que pueden estimular el gasto de los consumidores, la mayor parte de la economía de EE.UU..

17. At the same time, rising borrowing costs may slow the recovery. The average rate on a 30-year fixed mortgage was 4.31 percent in the week ended July 25, up from 3.49 percent a year earlier according to data from Freddie Mac. The rate reached a record low of 3.31 percent in November.

18. While buyers may conclude that they missed the absolute bottom of the market in terms of prices and interest rates, they also recognize that both are still a bargain in terms of the amount of house you can buy at a given income level.”

19. West Texas Intermediate crude fell to a three-week low before a government report that may show U.S. economic growth slowed in the second quarter.

20. Futures trimmed a monthly advance that would be the biggest in 11 months. U.S. gross domestic product probably expanded at a 1 percent annualized rate in the second quarter, compared with 1.8 percent in the previous three months, according to a Bloomberg News survey before data are released tomorrow. WTI’s discount to Brent widened to a two-week high.

21. Confidence among U.S. consumers declined more than forecast in July after reaching a five-year high a month earlier as Americans grew more pessimistic about the outlook for the economy and employment.

22. Opiniones de los consumidores de la economía apagaron como americanos pagaron más en la bomba de gas de este mes que el año pasado y las tasas hipotecarias más altas que amenazan con frenar el impulso en el mercado inmobiliario. Al mismo tiempo, el aumento de la riqueza ligada al valor de las propiedades y carteras de acciones están ayudando a sostener el gasto de los hogares.

23. To the extent that you’re paying attention and seeing rates are rising, that’s bad news if you’re looking for a mortgage or a car loan.

24. The Conference Board’s measure of expectations for the next six months decreased to 84.7 from 91.1. The gauge of present conditions improved to 73.6 this month from 68.7 in June.

25. Job gains, along with cheaper borrowing costs, are emboldening consumers to consider large purchases such as vehicles and homes. New cars and trucks sold in June at the fastest pace since 2007, according to Ward’s Automotive Group, as American drivers replaced aging vehicles.

26. Nombres de fertilizantes bajo presión después de OAO Uralkali se retiraron de un cártel potasa.