Before the Bell

It's a scary world right now, and Wall Street isn't quite sure who to trust. Stock futures are pointing down as the housing market and Iran situation put investors in a selling mood, and no one's really sure what the leader of the Fed is going to say later this morning.

The Fed has been one of the biggest boosters of the stock market lately, but everyone's going to be watching Chairman Ben Bernanke's testimony before a congressional committee to see whether the central bank really is kinder and gentler. Risk aversion is permeating the forex market as well.

The dollar is down against the yen. Oil, on the other hand, is soaring on anxiety over supplies from Iran and other Gulf nations. U.S. crude isn't far from $65 a barrel. U.S. Treasuries are steady. Mortgage applications fell last week on lower demand for refinancings, although purchase activity barely budged. A source says GM isn't likely to make a first-round bid for Chrysler, leaving only private equity firms and auto parts supplier Magna in the running. Organized labor is raising its voice.

The United Auto Workers is vowing to strike at Delphi if the bankrupt parts company voids its labor contract. And unions are demanding their fair share at United Airlines after learning that its parent's CEO got paid nearly $40 million last year.

In more corporate turmoil, semiconductor maker Atmel says its former CEO is trying to replace the board members who had fired him.

www.reuters.com
Lisa Von Ahn Editor