Premarket, futures are mixed. Gainers this morning include AMD (+9.39%), SWY, CSX, GOOG and SYMC while losers include COH (-15.80%), AAPL, TER, KEY and CLF.

The Market

3M Co reported a 3.9 percent rise in quarterly profit, matching expectations. Fourth-quarter profit increased to $991 million or $1.41 per share, from $954 million, or $1.35 per share, a year earlier. Profit met analysts’ average estimate. Revenue rose 4.2 percent to $7.39 billion from $7.09 billion. Wall Street had looked for $7.18 billion. 3M reaffirmed its outlook for earnings this year.

Microsoft (MSFT) and AT&T (T) report earnings after the close.

The number of Americans filing new claims for unemployment benefits unexpectedly fell to its lowest since the early days of the 2007-09 recession, a hopeful sign for the labor market. Initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 330,000, the lowest level since January 2008.

European stocks are up and Asian markets closed mostly lower.

Earnings Reports

Earnings reports (estimates): MSFT-Microsoft ($0.74), T-AT&T (0.45), MMM-3M (1.41), UNP-Union Pacific (2.16), BMY-Bristol Myers (0.42), CELG-Celgene (1.32), SBUX-Starbucks (0.57), BAX-Baxter (1.26), LMT-Lockheed Martin (1.82), PCP-Precision Caspt (2.47), RTN-Ratheon (1.31), GWW-WW Grainger (2.61), SWK-Stanley Black (1.28), DOV-Dover (1.07), JNPR-Juniper Networks (0.22), ABC-Amerisource Berger (0.67).

Financial Calendar

0830 ET Weekly initial unemployment claims expected +20,000 to 355,000, previous -37,000 to 335,000. Weekly continuing claims expected -14,000 to 3.200 mln, previous +87,000 to 3.214 mln.

0830 ET USDA weekly Export Sales.

1000 ET Dec leading indicators expected +0.4%, Nov -0.2% m/m.

1030 ET DOE Weekly Petroleum Status Report.

1100 ET Jan Kansas City Fed manufacturing activity expected zero, Dec -2.

1100 ET Treasury announces details of Jan 28-30 auctions of 2, 5 and 7-year T-notes.

1300 ET Treasury auction of $15 billion in 10-year TIPS.