More debt regret for stocks

Futures mired in the red a day after rising Treasury yields wallop stocks; oil in focus ahead of OPEC meeting.

March 7, 2006: 6:56 AM EST


NEW YORK (CNNMoney.com) - Rising bond yields, oil concerns and tepid guidance from chipmaker Texas Instruments combined to push stock futures lower early Tuesday.

S&P and Nasdaqfutures were in the red in before-hours trading, pointing to a pullback for stocks at the start of trading.

A spike in Treasury yields sparked fresh concerns about interest rates, resulting in a day of losses on Wall Street in the previous session.

Treasury prices edged lower, pushing the yield on the benchmark 10-year note up to 4.76 percent from 4.75 percent late Monday. Treasury prices and yields move in opposite directions.

Technology stocks are likely to stay in focus after chipmaker Texas Instruments (Research) disappointed investors with a lackluster forecast in its mid-quarter update Monday.

Elsewhere, oil prices rose slightly ahead of the OPEC meeting on Wednesday. U.S. crude was up 16 cents to $62.57 a barrel in electronic trading. London Brent crude rose 41 cents to $62.75 a barrel.

Overseas, major markets in Asia and Europe were mostly lower.

In currency trading, the dollar rose against the yen and the euro.

In corporate news, shares of biotech firms Biogen (Research) and Elan (Research) will face the spotlight as an FDA advisory committee convenes to discuss the safety of the multiple sclerosis drug Tysabri. The drug was withdrawn last year after it was linked to a rare brain infection.

Japan's Norinchukin Bank, a central bank for agricultural co-operatives, is considering joining a consortium led by U.S. Cerberus Group to acquire General Motors (Research)' finance arm, GMAC, a source close to the company told Reuters Tuesday. The report said the troubled U.S. automaker has been looking to sell a controlling stake in its finance unit -- General Motors Acceptance Corp. -- to a strategic partner to restore the profitable unit's credit rating to investment-grade status and get access to cheaper financing.