NEW YORK (CBS.MW) -- While the stock averages appear poised to open on higher ground Wednesday, investors have another round of accounting revelations to zero in on, which may upset attempts to keep the market on firmer footing.
Tech stocks look especially vulnerable to selling pressure after the Nasdaq collapsed to its lowest level since Nov. 2 on Tuesday.
March S&P 500 futures rose 2.80 points, or 0.3 percent, and were trading 3.10 points above fair value, according to HL Camp & Co. And Nasdaq futures gained 6.50 points, or 0.4 percent and were trading about 11.20 points over fair value.
Investors had another inflation report to chew on, this time in the shape of the consumer price index, which climbed 0.2 percent both overall and at the core in January. The latter strips out the choppy food and energy components. Economists surveyed by CBS.MarketWatch.com had expected a 0.3 percent rise in the overall CPI and a 0.2 percent gain at the core.
Early movers
Software firm Computer Associates (NYSE: CA - news) lost significant ground in pre-open dealings -- around 12 percent -- after stumbling 6.5 percent on Tuesday following a Newsday article claiming that federal authorities began a preliminary investigation into its accounting tactics.
But Computer Associates defended its accounting methods and stated that it hadn't been contacted by authorities regarding any investigation and did not know what, if anything, was being investigated.
Meanwhile, the Wall Street Journal reported that General Electric (NYSE: GE - news) would begin releasing more details on businesses overseen by its GE Capital arm in its financial statements. The move came on the wings of a similar pledge from IBM Tuesday. Big Blue (NYSE: IBM - news) has been under intense pressure over the past couple of trading sessions as investors question its accounting practices following an article in the New York Times last week.
GE shares lost 10 cents to $36.30 in the pre-open while IBM rose 26 cents to $99.80. The latter closed at its lowest level since mid October on Tuesday.
Investors had some high-profile rating actions to home in on Wednesday.
Media and entertainment kingpin AOL Time Warner (NYSE: AOL - news) saw its rating slashed by Lehman Brothers to a "market perform" from a "buy" on lowered growth estimates for the company's AOL unit. Analyst Holly Becker expressed concern with the firm's costly transition to broadband and its European expansion.
Oracle (NasdaqNM: ORCL - news) , meanwhile, enjoyed an upgrade from Banc of America to a "buy" from a "market perform" based on belief that shares are attractively valued. BofA also feels Oracle's business has stabilized and may be showing signs of improvement.
AOL erased 3 percent while Oracle jumped 2.6 percent in trading before the official opening bell.
Bonds still soggy
Government bonds extended losses in the long end after putting on a shabby showing on Tuesday.
The release of a tame CPI didn't stoke any fresh buying interest in the Treasury realm.
The 10-year Treasury note was off 9/32 to yield 4.905 percent while the 30-year government bond erased 5/32 to yield 5.395 percent.
In the currency sector, the dollar added 0.1 percent to 133.65 yen while the euro declined 0.1 percent to 87.52 cents.
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