Stocks set for a dip

NEW YORK (CNNMoney.com) -- U.S. stocks were poised for a lower open Wednesday as the upbeat sentiment surrounding corporate earnings seemed to run its course and investors looked to results from Morgan Stanley and Wells Fargo.

At 7:10 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were lower.

Futures measure current index values against their perceived future performance.

U.S. stocks soared Tuesday, buoyed by earnings surprises. The rally lifted the blue-chip Dow to its highest close in six months, after a choppy trading day during which investors balanced better-than-expected earnings against Federal Reserve Chairman Ben Bernanke's sobering testimony on the economy.

As for the remainder of the corporate reporting period, the markets may have already rallied as much as they can, especially as they move close to the sluggish month of August, said Manus Cranny, market analyst at MF Global in London.

"I really, genuinely think you've had a super run," said Cranny. "We're going into the real holiday season, and I think a lot of people just don't want to go home short."

Economy: Investors will continue to watch Bernanke, who heads to Capitol Hill for his second day of testimony.

On Tuesday, Bernanke said the U.S. economy was showing signs of stabilization. But he also said the housing and labor markets are still not recovering, and that the economic recovery was likely to be uncertain and gradual going forward.

"I'm glad somebody's putting a bit of a reality spin on it, and I think he's managing our expectations very well," said Cranny.

But investors may be nervous ahead of reports from Morgan Stanley (MS, Fortune 500) and Wells Fargo (WFC, Fortune 500). Both companies are due to post results before the market open.

Tech: Stocks to watch include Apple (AAPL, Fortune 500), which posted record third-quarter earnings late Tuesday that blew past analysts' expectations. The company's results were boosted by stellar iPhone sales. The stock edged up about 3% in pre-market trading.

Yahoo (YHOO, Fortune 500) reported a decline in revenue after the market close Tuesday. Its shares fell 3% before hours.

Global markets: Asian stocks extended their rally, with Tokyo's Nikkei index up nearly 1%. European markets dipped in midday trading.

Money and oil: The dollar rose against the euro and the British pound, but slipped versus the yen. The price of oil fell 85 cents a barrel to $64.76.