Stocks: Oil prices in the driver's seat

NEW YORK (CNNMoney) -- U.S. stocks were set for a mixed open Tuesday, following a broad retreat in the previous session, as oil prices eased.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures hovered on either side of breakeven ahead of the opening bell. Futures measure current index values against perceived future performance.

Investors are keeping a close eye on developments out of Libya and oil prices, which have surged lately. Earlier this morning, oil fell after reports said Moammar Gadhafi is trying to strike a deal with opposition leaders to step down and flee the country safely.

"We saw the oil market pull back aggressively on that, but whether it's going to lead to a boost in equities -- it's too soon to tell here," said Phil Streible, senior market strategist with futures broker Lind-Waldock.

Oil prices edged down 16 cents to $105.28 a barrel in electronic trading Tuesday. The modest retreat came a day after prices neared $107 a barrel, as investors remain nervous about the ongoing violence in Libya.

Meanwhile, gold prices rose $1.70 to $1,436.20 an ounce. Gold settled at a fresh record high of $1,434.50 an ounce Monday, as investors sought safety in the precious metal.

With no economic data on the agenda, investors are likely to remain focused on geopolitical developments and oil prices. Traders are worried that growing unrest in North Africa and the Middle East will further undermine oil output from the region, which could drag on the global economic recovery.

Over the long term, however, analysts surveyed by CNNMoney agree that the volatility in oil and gold prices will fade as the crisis in Libya abates.

U.S. stocks fell Monday, amid surging commodity prices and a lagging tech sector. The tech-heavy Nasdaq closed 1.4% lower.

Companies: Urban Outfitters (URBN) shares fell 12% in pre-market trading, after the retailer reported profit that widely missed forecasts, saying its margins were hit by increased markdowns.

Starbucks (SBUX, Fortune 500) begins rolling out its new logo Tuesday, as the coffee company celebrates its 40th anniversary this week. Starbucks shares were unchanged in premarket trading.

Morgan Stanley (MS, Fortune 500) is considering dropping the Smith Barney name from its brokerage business, according to sources cited in the Wall Street Journal.

Morgan Stanley and Citigroup (C, Fortune 500) agreed to create Morgan Stanley Smith Barney in January 2009, as a retail brokerage joint venture between the two banks. Morgan Stanley and Citigroup shares were both unchanged in pre-market trading.

Boston Beer (SAM), the maker of Samuel Adams beer, and retailer J. Crew (JCRW) are scheduled to release quarterly results after the closing bell.

Economy: Investors will be watching developments out of a meeting between Treasury Secretary Tim Geithner, European Central Bank President Jean-Claude Trichet and outgoing German Bundesbank President Axel Weber.

World markets: European stocks fell in morning trading. Britain's FTSE 100 edged lower 0.7% and the DAX in Germany fell 1%, while France's CAC 40 slipped 0.5%.

Asian markets ended the session higher. The Shanghai Composite ticked up 0.1%, the Hang Seng in Hong Kong jumped 1.7% and Japan's Nikkei advanced 0.2%.

Currencies: The dollar gained against the euro, the Japanese yen and the British pound.

Bonds: The price on the benchmark 10-year U.S. Treasury held steady, with the yield unchanged from Monday at 3.50%.