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Morning Market Roundup: Greek Bailout Delay, Home Depot Profits Beat Expectations, Oil Down


Here’s what’s important in the business world this morning

Greek Delay: Financial markets focused their concerns on the future of Greece on Tuesday as the country's creditors have still not agreed on giving it the next installment of its rescue loans.

Greece's fellow euro partners gave it a couple more years to meet its economic targets but remain at odds with the International Monetary Fund over how to make the country's debt manageable over the longer-term. They need to agree on that before they can release the €31.5 billion ($40 billion). They will meet again on Nov. 20 to discuss that.

The delay and seeming disagreements among the international creditors worried investors.

In Europe, Germany's DAX was down 0.9 percent at 7,106 while the CAC-40 in France fell 0.9 percent to 3,380. The FTSE 100 index of leading British shares was 0.8 percent lower at 5,721.

The euro also continued its downward drift, trading 0.3 percent lower at $1.2677.

Wall Street was headed for a lower opening too, with Dow futures and the broader S&P 500 futures down 0.8 percent. Traders in the U.S. will continue to monitor developments over the approaching "fiscal cliff," which refers to government spending cuts and tax increases that are scheduled to kick in at the beginning of the new year, unless a divided Congress and the White House can work out a compromise before then.

Earlier in Asia, Japan's Nikkei 225 index fell 0.2 percent to close at 8,661.05. Hong Kong's Hang Seng lost 1.1 percent at 21,188.65. South Korea's Kospi dropped 0.6 percent to 1,889.70.

Home Depot: A boost from the housing market helped Home Depot's net income edge up in its fiscal third quarter.

Its results beat Wall Street's expectations, and its shares rose almost 2 percent in early premarket trading.

For the period ended Oct. 28, Home Depot Inc. reported net income of $947 million, or 63 cents per share. That's up from $934 billion, or 60 cents per share, a year earlier.

Excluding a charge for closing some stores in China, earnings were 74 cents per share.

That topped the 70 cents per share that analysts surveyed by FactSet predicted. Revenue rose more than 4 percent to $18.13 billion. Wall Street expected $17.92 billion. Home Depot's stock added $1.09, or 1.8 percent, to $62.25 in premarket trading.

For the year, Home Depot now anticipates revenue will climb about 5.2 percent. Based on 2011's revenue of $70.4 billion, this implies $74.06 billion. Home Depot's prior forecast was for a 4.6 percent increase, which implied revenue of $73.63 billion.

U.S. Futures: U.S. stock futures are heading lower as a deal to rescue the Greek economy now looks much less iron clad than it had just one day ago, pushing markets down in Asia and Europe.

Dow Jones industrial futures are down 64 points to 13,716. The broader S&P futures have fallen 7.8 points to 1,370.40. Nasdaq futures are down 16 points to 2,565.

Finance ministers in Europe postponed desperately needed aid for Greece, some $40 billion. That comes as day after a much more optimistic tone Monday, when the head of the finance ministers of the 17 euro countries says lenders have prepared a "positive" report on the country.

On Tuesday, Home Depot posted rising profits for the third quarter thanks to an improving U.S. housing market.

Oil: The price of oil slipped to near $85 a barrel Tuesday as the International Energy Agency lowered its forecast for oil demand and said global supplies were growing.

By early afternoon in Europe, benchmark oil for December delivery was down 44 cents to $85.13 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 50 cents to finish at $85.57 per barrel on the Nymex on Monday.

The IEA said in its monthly oil market report that it had cut slightly its expectations of how much oil the world will need this year to 89.6 million barrels a day, 80,000 barrels a day less than its forecast from a month ago, on persistent economic weakness in Europe and the impact of Hurricane Sandy in the US.

The Paris-based agency also said global oil supply rose 800,000 million barrels a day in October, to 90.9 million barrels a day, "as rebounding supplies from the Americas and the North Sea offset a slight decline in OPEC crude supplies."

The IEA also said that Iran's oil output had broken a string of seven straight months of declines as China and South Korea appeared to be importing more crude from the Islamic Republic. Iran has been hit by hard economic sanctions by the West over its nuclear program.

Crude oil prices were also affected by renewed uncertainty over debt crisis in the European Union.

The Associated Press contributed to this report.

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