Stocks set for flat start
Concerns about banking sector and Chrysler weigh on investors.
NEW YORK (CNNMoney.com) -- U.S. stocks were set for a weak open Tuesday as investors awaited news about the Chrysler bankruptcy case and the banking sector.
At 8:45 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were barely higher, recovering from earlier lows.
Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.
Robert Brusca, chief economist at Fact and Opinion Economics, said it was difficult to tell how the Chrysler deal might impact trading, based on whether the bankruptcy is stalled further or allowed to go through.
"Blocking Chrysler is not a good thing for Chrysler and it's not a good a thing for the economy, but it would be a good thing for investors to find out that their rights are going to be protected," said Brusca.
Chrysler-Fiat: The Supreme Court delayed the sale of most of Chrysler's assets to Italian automaker Fiat late Monday.
The move throws a wrench into the plans for Chrysler to emerge swiftly from bankruptcy.
Banks: Investors are keeping an eye on the banking sector.
A U.S. government watchdog group said Tuesday that banks that were stress tested earlier this year should undergo another round of examinations.
The government is expected to announce soon which banks it intends to allow to repay bailout funds.
Len Blum, managing director at the investment bank Westwood Capital LLC, said that lackluster trading earlier this morning was "in anticipation of the announcement of which banks are allowed to pay back the TARP funds."
Tech: Chipmaker Texas Instruments (TXN, Fortune 500) raised its quarterly profit and sales outlook after U.S. markets closed Monday.
Economy: A report on wholesale inventories for April is on tap. A decline of 1.1% is expected for April, according to a consensus of economists surveyed by Briefing.com, compared to a decline of 1.6% the prior month.
Treasurys: Government debt prices edged higher, as the government prepares to buy and sell debt this week. The Treasury is set to auction $65 billion this week, including 3-year and 10-year notes and the reopening of 30-year bonds.
World markets: In Asia, stocks retreated. The mood was more upbeat in Europe, where major markets were modestly higher.
Money and oil: The dollar was lower versus the euro, the yen and the British pound. The price of oil rose $1.48 a barrel to $69.57. 
