The Dow Jones Industrial Average (DJI) is set to pare some of last week's gains, despite blue chip Bank of America's (NYSE:BAC) settlement with Fannie Mae. "The S&P 500 Index (SPX) closed up nearly 5% last week, and made a new five-year high," noted Schaeffer's Senior Options Strategist Tony Venosa. "Focus will turn back to company fundamentals this week, as January earnings season kicks off on Tuesday with the release of Alcoa's (NYSE:AA) fourth-quarter report."

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Futures on the Dow Jones Industrial Average are roughly 35 points below fair value.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 929,392 call contracts traded on Friday, compared to 596,575 put contracts. The resultant single-session put/call ratio jumped to 0.64, while the 21-day moving average remained at 0.63.

Currencies and Commodities

• The U.S. dollar index is gaining ground, with the currency pointed 0.1% higher at 80.62.
• Crude oil is poised to pare its recent gains, with February-dated crude 0.6% lower at $92.51 per barrel.
• Gold futures, on the other hand, are cutting into Friday's losses. At last check, the malleable metal is 0.4% higher at $1,655.80 an ounce.

Earnings and Economic Data

The calendar is rather quiet to open the week, with no major economic events or earnings reports scheduled.