NEW YORK (CNN/Money) -
U.S. stocks headed for a mixed open Wednesday as the dollar strengthened and IBM announced the $1.25 billion sale of its PC unit and chipmaker Texas Instruments gave a less bullish outlook than did competitor Intel last week.
U.S. stock futures were slightly up, although they were down from earlier levels and compared to fair value they were poised to be little changed from Tuesday's close.
The dollar rallied against the euro, which fell to $1.3299 from $1.3429 late Tuesday. The U.S. currency gained against the yen, climbing to ¥104.41 from ¥102.88.
After being higher earlier, oil was lower. U.S. crude futures were down 36 cents to $41.11 a barrel in electronic trading, not far from the 3-month low set Tuesday, ahead of Wednesday morning's report on U.S. fuel inventories and Friday's meeting of OPEC ministers. Brent oil futures lost 67 cents to $37.60 a barrel in London.
OPEC President Purnomo Yusgiantoro told reporters Wednesday that there is a proposal before the oil cartel to cut production levels in the face of recent price declines.
IBM announced the sale of its personal computer unit, an industry it once dominated, to China's Lenovo Group for $1.25 billion plus the assumption of $500 million in debt. IBM shares fell 0.1 percent in European trading Wednesday.
Chipmaker Texas Instruments (Research) narrowed its earnings and revenue range after the market close Tuesday with a far more conservative outlook than the bullish report last week from leading chipmaker Intel (Research). Shares of Texas Instruments fell 32 cents to $24.70 in after-hours trading.
Major Asian markets were mixed in Wednesday trading with Japan's Nikkei closing higher on the dollar's rally against the yen, and Hong Kong's Hang Seng closing down 1.5 percent. Major European markets were mostly lower in early trading.
The declines follow broad declines in the U.S. markets Tuesday.
Bond prices fell as the yield on the 10-year Treasury rose to 4.25 percent from 4.22 percent late Tuesday. Gold was lower due to the rally in the dollar.
There are no economic reports due out Wednesday.
In corporate news, General Motors (Research) is sweetening cash offers to car buyers the rest of this month after posting disappointing November sales. The No. 1 automaker has been the industry leader on incentives and the move will put more pressure on auto earnings while likely increasing year-end sales.
IBM (Research) finalized the anticipated deal to sell a majority stake in its personal computer business to Chinese computer maker Lenovo, for $1.25 billion, a deal that will make that company the world's third largest PC maker.
Dow component Walt Disney (Research) and Pixar Animation Studios (Research) announced they would delay the release of their next movie, "Cars," until June 2006. The movie is the last to be made under a distribution agreement between the two companies that has produced a string of six blockbuster hits.
Embattled drugmaker Merck (Research), which was forced to withdraw its pain drug Vioxx in September from the market due to increased risk of heart attacks and strokes in patients, warned that it would miss Wall Street forecasts for 2005 earnings, although it affirmed earlier lowered guidance for full-year 2004 and fourth quarter results. Its executives were due to meet with analysts starting at 9 a.m ET Wednesday. Merck shares gained in after-hours trading after it named a committee to look at issues related to the Vioxx withdrawal.
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