NEW YORK (CNN/Money) - A stronger-than-expected inflation reading is likely to guide stocks lower trading Tuesday, with the report on wholesale prices likely to be most import to investors.

U.S. stock futures were down in early trading, indicating a lower opening for stocks.

The Producer Proce Index rose 0.6 percent in the month of April after a 0.7 percent rise in March. The results were well above forecasts from economists surveyed by Briefing.com for a 0.4 percent gain in April.

The so-called "core-PPI," which strips out often volatile food and energy costs, rose a more modest 0.3 percent from 0.1 percent in March, still exceeding expectations for a 0.2 percent gain.

Inflation concerns have dominated both economists and investors' attention recently due to signs in other reports of rising inflationary pressures coupled with slower economic growth. The PPI comes the day before the Consumer Price Index, which is the key measure of retail price inflation.

Also released early in the morning was a reading on April housing starts, which rose 11 percent to 2.04 million, versus Briefing.com's forecast that starts would hit 2 million.

A report on industrial production and capacity utilization was due at 9:15 a.m. ET.

John Silvia, chief economist at Wachovia Securities, said that a report out of China that top government officials there said the country will not be pressured to revalue its currency, the yuan, which has been pegged to the dollar, was responsible for some of the early weakness in stock futures.

A higher-valued yuan may make U.S. goods more competitive with imports from China. Support is building in Congress to slap China with tariffs if it doesn't move to raise the value of the yuan.

Silvia said there was already concern about a possible trade war between the United States and China before Tuesday's comments. He said the new comments were being taken as a sign that the hoped-for revaluation of the yuan will now be delayed, increasing the risk of U.S. sanctions.

The risk of higher than expected inflation is also weighing on futures, Silvia said.

"There's so much data about inflation in the next couple of days that there's nervousness about that," he said.

Oil prices rose in electronic trading in the U.S. Tuesday following another drop in prices Monday to settle below the $49 a barrel level.

The June light crude contract lost 13 cents to $48.48 a barrel in pre-market trading. The July contract for Brent crude was still trading higher, up 16 cents at $49.25, but was down from session highs.

Major markets in Asia closed lower Tuesday on a continued rise in the dollar. Major European markets were mixed in early trading, with London higher and Paris and Frankfurt indexes showing losses.

Treasury prices fell following the PPI report, with the yield on the 10-year note rising to 4.14 percent from 4.13 percent late Monday. The dollar gained ground on the yen and the euro.

In corporate news, home improvement retailer Home Depot (Research) reported slightly better than forecast fiscal first-quarter earnings and reconfirmed guidance for the year.

After the market close, computer and peripheral maker Hewlett-Packard (Research) is expected to see only narrow gains in sales and earnings, but investors will be more interested in hearing details of the turnaround plans from Mark Hurd, the tech company's new CEO.

For a more detailed look at the markets before the open, click here.