NEW YORK - U.S. stocks headed for a lower open Wednesday amid renewed concerns that soured subprime loans will wreak financial havoc and upend the recent run-up on Wall Street.
The latest concerns follow word that two Bear Stearns hedge funds were left essentially worthless by bad bets on subprime loans, which are made to those with poor credit. A weaker housing market has made it more difficult for borrowers who get behind on payments to refinance and pay off debts.
Adding to investors concerns, Intel Corp. warned of weaker-than-expected profit margins and Yahoo Inc. lowered its forecast.
The move lower comes a day after the Dow Jones industrials traded above 14,000 for the first time.
Dow Jones industrial futures expiring in September fell 32, or 0.23 percent, to 14,018, while Standard & Poor's 500 index futures fell 5.30, or 0.34 percent, to 1,553.40. Nasdaq 100 index futures fell 8.75, or 0.42 percent, to 2,052.00.
Besides a flurry of quarterly results from big-name companies, an important reading on inflation is due with the Labor Department's release of the Consumer Price Index for June. Wall Street expects the CPI to increase at a slower pace than the 0.7 percent increase seen in May. Investors also expect the so-called core figure, which excludes often volatile food and energy prices, will also increase.
Inflation appears to remain among Wall Street's chief concerns as investors are hoping rising prices won't prompt the Federal Reserve to put off an eventual interest rate reduction or even to raise rates. Even if the Fed doesn't act, higher costs could prompt some consumers to curtail their spending. Such a retrenchment could dent corporate profits.
Investors hope to glean insights into the central bank's latest read on the economy from comments from Federal Reserve Chairman Ben Bernanke. He is set to appear before the House Financial Services panel Wednesday. The Fed's next meeting is in about three weeks.
In other market action Wednesday, bonds rose, with the yield on the benchmark 10-year Treasury note falling to 5.05 percent from 5.06 percent late Tuesday.
The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude rose 29 cents to $74.31 a barrel in premarket electronic trading on the New York Stock Exchange. Oil, which rose above $75 Tuesday, fell below $74 early Wednesday ahead of weekly government data expected to show increases in gasoline and distillate stocks.
In corporate news, Intel reported second-quarter profits that met Wall Street's expectations after the bell Tuesday but turned in weak profit margins because of lower chip prices.
Yahoo reported a 2 percent decline in its second-quarter earnings and brought down its forecast for the year.
Altria Group Inc., parent of the Philip Morris cigarette companies, saw its second-quarter profit fall 18.3 percent but reported higher earnings from continuing operations as well as increased revenue. The company, one of the 30 companies that comprise the Dow Jones industrials, lowered its full-year earnings forecast.
JPMorgan Chase & Co., the nation's third-largest bank, said Wednesday its earnings rose 20 percent in the second quarter amid benefits from a surge in investment banking fees.
Overseas, Japan's Nikkei stock average fell 1.11 percent. In afternoon trading, Britain's FTSE 100 fell 0.74 percent, Germany's DAX index fell 1.33 percent, and France's CAC-40 fell 0.83 percent.
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