Stocks await Bernanke

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NEW YORK (CNNMoney.com) -- Stocks were poised to move lower at Wednesday's open as the weak dollar soured the mood ahead of Fed Chairman Ben Bernanke's testimony on Capitol Hill.

About 90 minutes before the start of trading, Nasdaq and S&P futures were lower, indicating a negative start for Wall Street.

Investors shrugged off a string of bad economic news on Tuesday, including a surge in wholesale prices and a weak reading on consumer confidence, to finish that session higher.

But they appeared less upbeat on Wednesday, as the dollar sank to an all-time low against the euro and crude prices kept up their record run.

Also, The Journal of the American Medical Association reported that anti-anemia drugs like Aranesp from Amgen (AMGN') and Procrit from Johnson & Johnson (JNJ, Fortune 500) raised the risk of blood clots and death in patients.

"I think there's more bad news than good news," said Art Hogan, chief market strategist at Jefferies & Co.

Hogan said that all eyes will be on Bernanke, who is expected to get grilled before the House Financial Services Committee. Investors will be looking for clues about what the Fed plans to do with interest rates. They'll also scrutinize comments any comments he makes about the economy and credit problems.

"That's a difficult conundrum that [Bernanke] finds himself in," said Hogan, noting that the positive impact of aggressive interest rate cuts haven't been felt yet.

Also, economic reports are expected today. Durable orders are expected to show decline of 4% in January, according to economists surveyed by Briefing.com. In December, durable goods orders fell 5.2%.

A separate report on new home sales is expected to show sales slowed to an annual pace of 600,000 in January compared to 604,000 the prior month. This decline pales in comparison to the plunge in sales over the last couple months.

Oil prices hit a new intraday high above $102 a barrel. Traders will be watching a government report on fuel inventories that is expected to show an increase in oil stocks last week.

The dollar sank to a record low against the euro. The euro bought $1.5057 in early trading before slipping to $1.5048.

Stocks to watch include Microsoft (MSFT, Fortune 500), which was fined a record $1.3 billion by European Union regulators for failing to obey an antitrust order.

Homebuilder Toll Brothers (TOL, Fortune 500), which reported weak first-quarter results. The company swung to a net loss amid the housing crunch.

Film studio DreamWorks (DWA) reported results late Tuesday. The studio swung to a quarterly profit on "Shrek 3" sales.

In global trade, Asian markets finished the session higher. European stocks tumbled in morning trading.