Reuters/Christian Hartmann
A cross-country skier enjoys a cold and sunny winter's day at the Champ du Feu near Strasbourg, France.
US markets are set to open lower. US markets are pointing lower as traders return to work following the holiday weekend. The Dow Jones Industrial Average is on track to open down 0.3% near 19,818.
Treasurys are rallying. Aggressive buying has US Treasury yields down as much as 8 basis points in the belly of the curve with the 10-year falling to 2.32%, its lowest since the end of November.
Xi Jinping speaks in Davos. Xi gave the opening plenary speech at the World Economic Forum in Davos, Switzerland and declared, "No one will emerge as a winner in a trade war."
Saudi Arabia says the OPEC production cut might not extend past June. "We don't think it's necessary given the level of compliance," Saudi Energy Minister Khalid al-Falih said Monday while speaking at an industry event in Adu Dhabi. "My expectations (are) ... that the rebalancing that started slowly in 2016 will have its full impact by the first half."
Theresa May reveals her road map for a hard Brexit. UK Prime Minister Theresa May said while speaking at Lancaster House on Tuesday said, "We do not seek to hold on to bits of membership as we leave," and that she is against any deal that leaves the UK "half-in, half-out" of the European Union.
UK inflation surges. Data released by the Office for National Statistics on Tuesday showed consumer prices in the UK rose 1.6% in January, up from November's 1.2% print, as transport prices saw the biggest jump. The British pound is stronger by 1.1% at 1.2174 per dollar.
BAT agrees to buy Reynolds. British American Tobacco upped its offer for US rival Reynolds to $49.4 billion, Reuters reports. BAT will pay a 26% premium over Friday's closing price, $29.44 in cash plus 0.5260 BAT shares for each Reynolds share, for the remaining 58% stake of Reynolds that it doesn't already own.
GM is investing $1 billion. The automaker says it will invest $1 billion in its factories and create or keep 1,000 jobs as part of its normal process of upgrading factories, the Associated Press reports, citing a person familiar with the matter.
Earnings reporting picks up a bit. UnitedHealth and Morgan Stanley report ahead of the opening bell while CSX and United Continental release their quarterly results after markets close.
US economic data is light. Empire Manufacturing will cross the wires at 8:30 a.m. ET.