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Wall St. Breakfast's Pre-Market Snapshot:

U.S. Futures As of 8:45 AM EST

S&P 500: +2.10; 1,437.50
NASDAQ 100: +10.25; 1,797.25
Dow: +18.00; 12,610.00

International Indexes

Asia
NIKKEI 225: +0.57%; 17,507.40 (+98.83)
HANG SENG: +0.25%; 20,821.05 (+51.35)
S&P/ASX 200: +0.59%; 5,768.80 (+33.80)
BSE SENSEX 30: +0.49%; 14,110.46 (+69.22)

Europe
FTSE 100: +1.41%; 6,315.30 (+87.70)
CAC 40: +0.92%; 5,626.10 (+51.03)
XETRA-DAX: +0.72%; 6,727.23 (+48.30)

Commodity Futures (Reuters/Jefferies CRB)

Oil: -0.58%; $54.72 (-$0.32)
Gold: -0.33%; $643.80 (-$2.10)
Natural Gas: -1.29%; $7.50 (-$0.10)
Silver: -0.19%; $13.275 (-$0.025)

U.S. Breaking Newssee today's Wall Street Breakfast for earlier news

Cingular Triples Profits On Addition of 2.4 Million New Subscribers

AT&T's wireless division, Cingular Wireless, reported that its fourth-quarter profits more than tripled with the addition of a record 2.4 million net subscribers. Profits rose to $782 million from $204 million a year earlier. The nation's biggest mobile-phone carrier in terms of customers ended the quarter with 61 million customers while reporting a 10.2% increase in revenue to $9.8 billion. Reuters estimates were for Cingular to add just 1.62 subscribers. Average monthly revenue per subscriber rose while the percentage of customers who cancel service (called 'churn') fell to 1.8% from 2.1% in the year-earlier period. AT&T is currently in the midst of a campaign to rebrand Cingular 'AT&T Wireless.'
• Sources: Press Release, MarketWatch, Reuters
• Related commentary: AT&T Undertakes Major Campaign To Rebrand Cingular 'AT&T Wireless', Time For Wireless Carriers to 'Unlock' Customer Handsets
• Potentially impacted stocks and ETFs: AT&T Inc. (NYSE:T). Competitors: Sprint Nextel Corp. (NYSE:S), Verizon Communications Inc. (NYSE:VZ), Vodafone (NASDAQ:VOD), Qwest Communications International Inc. (NYSE:Q). ETFs: iShares S&P Global Telecom ETF (NYSEARCA:IXP), iShares Dow Jones U.S. Telecom Sector Index ETF (NYSEARCA:IYZ), PowerShares Dynamic Telecom & Wireless ETF (PTE), PowerShares FTSE RAFI Telecommunications & Technology Portfolio (PRFQ), Vanguard Telecom Services ETF (NYSEARCA:VOX), Telecom HOLDRS ETF (NYSEARCA:TTH)

Corning: Q4 Earnings Beat Street, But Q1 Guidance Disappoints

Corning reports Q4 net income of $646 million, or $0.41/share, after a $33m loss, or -$0.02/share last year. Excluding a $0.10/share tax gain, EPS is $0.31, beating analysts' average estimate of $0.28. Revenue increased 14% to $1.37b, beating analysts' estimate of $1.3b. Excluding special gains and charges Corning's full year net income grew 35% to $1.78b, or $1.12/share, on sales growth of 13% to $5.17b. Corning-GLW-1yr-chart-01-23-07 It grew cash flow by $0.4b on the quarter and mentions share repurchases or the reinstatement of a dividend is possible after it repays near-term debt and earmarks funds for R&D. Corning says it expects the '07 overall LCD glass substrate market to grow in the mid-30% range. Global LCD TV penetration is seen reaching 33%, or 68m units this year, compared to 22%, or 43m units last year. Corning expects Q1 sales of $1.26b to $1.31b and EPS of $0.24 to $0.27, before special items. According to Thomson, analysts were looking for EPS of $0.28 on sales of $1.34b. Corning's shares lost 0.84% yesterday to close at $18.84, but are trading near $19.50 (+3.5%) in the pre-market on volume approaching 500k.
• Sources: Earnings press release, Bloomberg, MSN Money-AP
• Related commentary: Credit Suisse Cuts Corning Estimates But Remains Positive on Stock, The Long Case for Corning, iSuppli: More LCD Pain On The Way. Conference call transcripts: Corning Q3'06
• Potentially impacted stocks and ETFs: Corning (NYSE:GLW). ETFs: Broadband HOLDRs (NYSE:BDH), iShares Goldman Sachs Networking (NYSEARCA:IGN)

General Dynamics Reports Higher Profits on Acquisitions and Order Increases

Tank and warship manufacturer General Dynamics today reported a 16.3% rise in Q4 earnings from continuing operations on the back of acquisitions and order increases for the war in Iraq. Earnings from continuing operations reached $463 million, or $1.13/share, versus $398 million, or $0.98/share, in 2005. Q4 revenue was $6.5 billion against $5.8 billion last year. Including a charge for anticipated sales of coal mining operations, net income rose less than 1% to $408 million, or $1/share, from $406 million, also $1/share, in 2005. The Street was forecasting EPS of $1.14. Full-year earnings from continuing operations rose 18.1% to $1.71 billion, or $4.20/share, versus $1.45 billion, or $3.58, a year ago. Full-year revenue was up 14.7% to $24.1 billion. Sales in the quarter rose 13% to $6.51 billion from $5.76 billion, just missing analyst forecasts of a 14% rise to $6.62 billion. GD made acquisitions worth $2 billion in 2006 for its secure computer and communications unit, giving a 20% boost to IT sales in the quarter. GD also benefited from growing demand for repairs and replacement of vehicles used in Iraq.
• Sources: Press release, Bloomberg, MarketWatch
• Related commentary: General Dynamics Inks $1.27 Billion Contract Addition With U.S. Navy, Defense Sector Bests the S&P 500 for a Seventh Consecutive Year, Defense Stocks Should Continue to Outperform in 2007
• Potentially impacted stocks and ETFs: General Dynamics Co. (NYSE:GD). Competitors: Lockheed Martin Corp. (NYSE:LMT), Raytheon Co. (NYSE:RTN), Northrop Grumman Corp. (NYSE:NOC), The Boeing Company (NYSE:BA). ETFs: iShares Dow Jones US Aerospace & Defense (NYSEARCA:ITA), PowerShares Aerospace & Defense (NYSEARCA:PPA)

Asian Headlines (via Bloomberg.com)

Asian Stocks Rise to Eight-Month High, Led by Toyota on U.S. Economic Data Asian stocks rose to an eight-month high, led by Toyota Motor Corp. (NYSE:TM) and Samsung Electronics Co., after U.S. economic reports suggested consumer spending will be sustained in the region's largest export market.

Goldman Sachs Seeks to Sell $329 Million Sanyo Credit Stake, People Say Goldman Sachs Group Inc. (NYSE:GS) is selling a controlling stake valued at 43 billion yen ($350 million) in Japanese leasing and finance company Sanyo Electric Credit Co. (OTC:SANYY), two people with direct knowledge of the plan said.

Hong Kong Dollar's Decline, Yuan's Advance Were `Stage-Managed,' UBS Says The Hong Kong dollar's drop to the lowest since 1991 was ``stage-managed'' to deter speculators from betting the city's 23-year-old link to the U.S. dollar will end, said Jonathan Anderson, UBS AG's chief Asia economist.

Bush's Doubling of Oil Stockpile May Support Prices as China, India Buy President George W. Bush's decision to double the emergency oil stockpile in the U.S. may help to stem a six-month slide in prices as China, India and South Korea bolster their defenses against shortages as well.

Nanya Technology Reports Third Straight Record Profit on Computer Demand Nanya Technology Corp., Taiwan's second-biggest memory-chip maker, posted record profit for a third straight quarter as limited supplies of the devices drove up prices for personal-computer makers including Dell Inc.

European Headlines (via Bloomberg.com)

European Stocks Advance to Six-Year High, Paced by Statoil, BHP Billiton European stocks rallied to a six-year high, led by commodity producers and utility companies as oil, metals and power prices increased.

U.K. Economy Grew 0.8 Percent, Fastest Since 2004 on Service Industries The U.K. economy grew at the fastest pace since 2004 in the fourth quarter as the financial-services boom in London created jobs and pushed house prices to a record.

Bank of England Voted 5-4 for Surprise Interest-Rate Increase in January Bank of England policy makers voted 5- 4 for a surprise increase in the benchmark interest rate this month to quell inflation, with David Blanchflower, Rachel Lomax, Charles Bean and Paul Tucker in favor of no change.

EU Fines Siemens, Areva, Alstom for Fixing Prices of Electricity Equipment Siemens AG (SI), Areva SA, and eight other makers of electricity network equipment were fined 750.7 million euros ($977 million) for fixing prices, the second-biggest penalty imposed by European antitrust regulators.

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