Stocks poised for sharp fall

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NEW YORK (CNNMoney.com) -- Stock futures fell early Tuesday after chipmaker Intel cut its profit forecast and as investors awaited the latest on the battered U.S. economy from Federal Reserve Chairman Ben Bernanke.

At 6:35 a.m. ET, Nasdaq and S&P futures were sharply lower, indicating a difficult start for Wall Street.

Intel (INTC, Fortune 500) lowered its profit outlook after the market close Monday. The company said that the price for memory chips had fallen more than expected. Shares of the Dow component fell 2.1% in early trading in Frankfurt Tuesday.

At 9 a.m. ET, Bernanke is set to speak at an Independent Community Bankers of America meeting in Orlando about "Reducing Preventable Mortgage Foreclosures." It is the last scheduled public comment from the nation's top central banker before policymakers meet March 18 to consider interest rates.

In testimony before Congress last week, Bernanke said he expected to see the number of bank failures rise this year and was concerned about the need for larger banks to raise additional capital.

Those comments rattled markets and the subject could get further attention Tuesday when the Senate Banking Committee hears from other banking regulators on the state of the U.S. banking industry. The hearing is set to start at 10 a.m. ET.

Oil edged higher in early trading, as a barrel of light sweet crude rose 18 cents to $102.63 in electronic trading. Gold gained $2.70 to $986.90 an ounce and edged closer to the $1,000 benchmark on concerns about the weak dollar and rising inflationary pressures.

Worries about bond insurers could also be back in the news after the Financial Times reported that Ambac (ABK) has decided against splitting its business into two.

In other corporate news, oil company BP (BP) said in its annual report Tuesday that it has set aside an additional $500 million to to settle claims arising from a fatal Texas City refinery fire in 2005, on top of a previously disclosed $1.6 billion provision. Shares of BP were down 1.6% in London trading, despite slightly higher oil prices.

Other stocks to watch include No. 1 book retailer Barnes and Noble (BKS, Fortune 500), whose shares lost 4.7% in after-hours trading Monday after it raised its fourth-quarter earnings guidance but said its adjusted profit will still likely fall below Wall Street analysts' estimates.

Office supplies firm Staples (SPLS, Fortune 500) is due to report its results ahead of the market open Tuesday.