Stocks: Eurozone political uncertainty reigns

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NEW YORK (CNNMoney) -- U.S. stocks headed for a lower open Wednesday as more political developments in the eurozone kept investors on their toes.

The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were down ahead of the opening bell Wednesday morning. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

Mario Monti assumed the position of Italy's prime minister Wednesday, and he was scheduled to present his new government later in the day. In Greece, Prime Minister Lucas Papademos faced a vote of confidence for his new government.

Ahead of these developments, the same uncertainty over whether the new governments will help the eurozone dig itself out of debt continued to hang over the market.

"It's Groundhog Day, you wake up and it's the same thing over and over again," said Mark Luschini. "Markets remain very skeptical that Greece and Italy aren't going to be able to institute the reforms necessary to right their fiscal ship."

But economic data out of the U.S. on inflation and industrial production Wednesday may offer investors a temporary reprieve from eurozone worries.

Teetering on the edge of recession

"Domestic news is helping to influence stock prices -- it has been unspectacular, but it's accumulating to the point of where we're going to skirt another recession," Luschini said. "As long as nothing significant comes forward from Europe, investors may get a chance to chew on some domestic news today."

U.S. stocks closed higher Tuesday, as a batch of better-than-expected U.S. economic data temporarily overshadowed ongoing fears about the eurozone debt crisis.

Italy's 10-year bond yield topped 7% Tuesday, following a lackluster reading on third-quarter eurozone economic growth. That level -- which Italian bonds breached for the first time last week -- is a benchmark that makes traders nervous, because Greece, Portugal and Ireland passed it shortly before receiving bailouts.

Meanwhile, the 10-year bond yield for Spain, another of the troubled economies in Europe, jumped as high as 6.3%. French yields also rose, raising concerns that the debt crisis is spreading to the eurozone's core.

World markets: European stocks were mixed in midday trading. Britain's FTSE 100 (UKX) slipped 0.3%, the DAX (DAX) in Germany fell 0.3% while France's CAC 40 (CAC40) climbed 0.3%.

Asian markets ended lower. The Shanghai Composite (SHCOMP) sank 2.5%, the Hang Seng (HSI) in Hong Kong dropped 2% and Japan's Nikkei (N225) lost 0.9%.

Economy: Inflation crept lower in October, the government reported Wednesday. Consumer prices rose at a 3.5% annual rate in October, due to declines in energy costs. Analysts expected inflation for the month to stay flat.

Core inflation, excluding volatile food and energy prices, ticked up 0.1% in October, after rising the same amount in September. The increase was in line with expectations.

Federal Reserve still divided on the economy

October industrial production, which comes out at 9:15 a.m., is projected to increase by 0.4%, following a 0.2% increase in September.

Companies: Target (TGT, Fortune 500) reported quarterly earnings before the opening bell that blew past expectations, with same-store sales rising 4.3%. Shares of the retailer jumped more than 3% in premarket trading.

Shares of Abercrombie & Fitch (ANF) slid more than 9% in premarket trading after the apparel retailer posted an increase in quarterly earnings that widely missed expectations. The company said its results were impacted by higher costs and economic uncertainty.

After the market close Tuesday, Dell (DELL, Fortune 500) reported solid profits but poor sales results for the previous quarter. Shares fell 2% Wednesday morning.

Currencies and commodities: The dollar rose against the euro and British pound, but lost ground versus the Japanese yen.

Oil for December delivery slipped 26 cents to $99.11 a barrel.

Gold futures for December delivery fell $8 to $1,774.20 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.03% from 2.06% late Tuesday.