By Anora Mahmudova and Sara Sjolin, MarketWatch

Housing starts dip in January; Producer prices drop

NEW YORK (MarketWatch) -- U.S. stock futures gave up overnight gains and were flat shortly before the regular market open on Wednesday.

Markets drifted lower after softer-than-expected housing and inflation reports were released Wednesday morning. Investors are eager to get a peek this afternoon at minutes from the Federal Reserve's January meeting.

Meanwhile, any development to reach a debt deal between Greece and its creditors is likely to influence market direction.

Paring back from earlier gains, futures for the Dow Jones Industrial Average (DJH5) slipped 18 points to 17,983, while those for the S&P 500 index (SPH5) fell 2 points to 2,093. Futures for the Nasdaq-100 index (NDH5) were off 2 points to 4,379.

The muted action follows a slightly positive session on Tuesday, when sentiment got some boost from reports that Greece may ask for a six-month loan extension. The request is expected on Wednesday, and the conditions of such an agreement are reportedly under negotiation. Germany has already said it won't accept a mere loan agreement without a formal extension of Greece's current bailout program, including the strict austerity conditions attached. The Global X FTSE Greece 20 ETF (GREK) dropped 2% ahead of the bell.

See: Why the ECB's unlikely to cut off emergency funds to Greek banks

Data: Kicking off an action-packed data day, the producer-price index and housing-starts data.

U.S. wholesale prices posted a record 0.8% decline in January after an unprecedented drop in energy costs, the Labor Department said Wednesday. The drop was larger than expected. Meanwhile, construction on new U.S. homes dropped 2% in January to an annual rate of 1.07 million units, as heavy snowfall hindered builders in some regions such as the Midwest and Northeast. The numbers matched consensus forecast of economists polled by MarketWatch.

At 9:15 a.m. Eastern Time, industrial production is forecast to show a 0.4% improvement in January, after a 0.1% drop in December. Capacity utilization comes out at the same time, expected to have risen to 79.9% in January, from 79.7% the previous month, according to MarketWatch estimates.

FOMC minutes: The minutes from the Federal Open Market Committee's meeting on Jan. 27-28 are due at 2 p.m. Eastern, in the middle of the U.S. trading day. At the meeting, Federal Reserve policy makers told investors they would be "patient" about hiking short-term interest rates, and market participants will scrutinize the minutes to see whether any of the top Fed officials actually wanted to drop that phraseology.

Earnings: Reporting before the opening bell, hotel chain Hilton Worldwide Holdings Inc. (HLT) said fourth-quarter adjusted earnings rose to 17 cents, slightly missing analyst estimates. The company, however, said it was optimistic about 2015. Shares seesawed premarket and were down 0.7% at the latest.

Actavis PLC gained 2.5% ahead of the open after the pharmaceutical firm raised its profit guidance for 2015.

As for companies reporting after the markets close, solar-power company SolarCity Corp.(SCTY) is expected to post a quarterly loss of $1.27 a share.

Marathon Oil Corp.(MRO) is seen delivering quarterly earnings of 4 cents a share.

Hotel operator Marriott International Inc.(MAR) is forecast to report quarterly profit of 65 cents a share.

Movers and shakers: Rackspace Hosting Inc.(RAX) fell 3.5% in premarket action after the cloud-computing company late Tuesday posted a sharp increase in profit, but predicted first-quarter revenue will be below Wall Street estimates.

Other markets: European stock markets moved firmly higher, boosted by optimism that the Greek debt drama could soon come to an end. Asian markets also got a lift from Greece and closed with gains.

Crude-oil prices (CLH5) fell almost 2%, while metals prices were mostly lower as well. The dollar (DXY) rose against most other major currencies.

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