Eyes on oil, Fed after Dow record

[notiCIas]

Eyes on oil, Fed after Dow record

Oil prices, comments from Fed officials could set direction of stocks after record high; Intel may face EU antitrust charges.

October 4 2006: 7:37 AM EDT


NEW YORK (CNNMoney.com) -- Investors will be watching to see if stocks can build on Tuesday's record high as they awaiting new comments from Federal Reserve policymakers and watch to see if oil can stay near seven-month lows.

Stock futures rose just after 7 a.m., pointing to a higher open, after Kuwait's oil minister told wire service Reuters that any production cuts by OPEC would be voluntary.

Oil prices are still slightly higher in early trading following those comments, although off earlier levels. Also due to affect oil prices Wednesday is a report on U.S. fuel inventories due at 10:30 a.m. ET.

U.S. light crude was up 42 cents to $59.10 a barrel in electronic trading, while Brent crude trading in London is 44 cents higher at $58.87. Oil hit a seven-month low Tuesday.

The Dow closed at a record high Tuesday, after several days of trying to pierce that level.

The Wall Street Journal reported that European Union investigators believe they have enough evidence to pursue antitrust charges against chipmaker Intel (Charts), which could put pressure on both the Nasdaq and the Dow in Wednesday trading. Still, shares of Intel were up 0.3 percent in early trading in Frankfurt.

Fed Chairman Ben Bernanke is due to speak Wednesday, as are Vice Chairman Donald Kohn, Fed Gov. Susan Bies and New York Fed President Timothy Geithner.

Bernanke is due to speak to the Economic Club of Washington in remarks set for 12:45 p.m. ET. Tuesday Kansas City Fed President Thomas Hoenig said Monday that inflation was ``too high.'' The dollar gained against the euro and the yen in early trading following his comments. Treasury prices were little changed in early trading, leaving the yield on the 10-year note near 4.61 percent.

Most major indexes in Asia closed lower on the announcement by North Korea Tuesday that it plans to test a nuclear weapon.

Shares of Toyota Motor (Charts) closed higher in Tokyo Wednesday, though, the day after it reported a 20 percent increase in September U.S. auto sales, as General Motors (Charts) and Chrysler Group, the key unit of DaimlerChrysler (Charts) continued to lose share.

Major indexes in Europe were up in early trading, although EADS, the parent of aircraft maker Airbus, lost 7 percent in Paris trading on the announcement of additional delays in the first deliveries of the A380 superjumbo jet. Competitor Boeing (Charts), a Dow component, gained nearly 3 percent in Frankfurt trading.