NEW YORK (CNN/Money) - U.S. stocks pointed to a lower open Wednesday as investors considered a Dow component's plan to expand into China and awaited a profit report from the world's largest Internet server firm.

Caterpillar (CAT: Research, Estimates), the world's largest construction equipment firm, said Wednesday it will expand its presence in China by investing in Chinese construction equipment firms.

The company's first agreement is with Shandong Engineering Machinery, terms of the deal were not disclosed however.

For an indication on tech spending, investors will be keeping an eye on Cisco's (CSCO: Research, Estimates) profit report, which is expected to be released after the closing bell Wednesday.

The No .1 maker of Internet servers is expected to post a profit of 15 cents a share on revenue of $4.9 billion, according to First Call. Investors will also be watching for more signs that corporations are buying new equipment.

Luxury home builder Toll Brothers Inc. (TOL: Research, Estimates) said Wednesday its preliminary fourth-quarter home building revenue rose 29 percent to finish the year on a strong note.

YOUR E-MAIL ALERTS Follow the news that matters to you. Create your own alert to be notified on topics you're interested in. Or, visit Popular Alerts for suggestions. Manage alerts | What is this?

The company, fueled by historic demand for housing spurred on by the lowest mortgage rates since the end of World War II, recorded preliminary quarterly home-building revenue of about $894 million. That compares with $692.1 million a year earlier.

Toll Brothers, based in Huntingdon Valley, Pa., said preliminary fiscal 2003 home building revenue was about $2.73 billion, up 20 percent from $2.28 billion a year ago.

Headwaters Inc. (HDWR: Research, Estimates), which uses technology to convert coal into fuel, said Wednesday that its quarterly earnings rose on sharply higher sales of chemical reagents.

The company, based in South Jordan, Utah, reported fourth-quarter net income of $11.2 million, or 40 cents a share, compared with $7.4 million, or 28 cents a share, a year earlier.

Looking ahead, the company said it expected 2004 earnings of $1.50 to $1.60 a share, reflecting a growth rate of 15 to 23 percent.

Revenue in the quarter rose to $106.5 million from $43.7 million a year ago.

On a pro forma basis, revenue in the comparable period of last year was $102 million, while earnings were $9.7 million, or 34 cents a share.  

-- Reuters contributed to the story