Before the bell 6-12-07: Another flat open seen

Stock futures indicate a flat opening this morning as rising Treasury yields continue to affect investors. Investors today will also focus on Texas Instruments (NYSE: TXN) tighter earnings expectations reported yesterday after the close and will pay special attention to Lehman Brothers (NYSE:LEH) earnings report this morning as the company should kick off investment banks earnings season.

Yesterday, without any notable economic data released, stocks finished nearly flat after a three-day sell-off last weak and then a day of recovery on Friday. Investors seemed to wait for economic and inflation news before making any more significant moves.

Today, the same bond yields that made investors, continue to rise. The yield on the 10-year benchmark note climbed to nearly 5.20% from around 5.16% last night.
Overseas, inflation was also in the headlines. In China, consumer price inflation had risen to a 27-month-high of 3.4% in May, intensifying speculation of a rate hike. In the U.K., consumer prices rose 2.5% in May, the lowest inflation rate in seven months. Core inflation, however, accelerated to 1.9% from 1.8%, matching the highest level since 1997. Investors expect the Bank of England to increase rates.

While Japanese stocks slipped today, most Asian markets finished higher. European stocks are trading lower mid-day.

In corporate news:

Texas Instruments shares are down 2.5% in pre-market trading (7:22 a.m.) after the chip maker reported after the close yesterday and lowered the mid-point of its second-quarter revenue target. Sales of calculators missed its expectations, the company said.

Yahoo Inc. (NASDAQ: YHOO) is holding its annual shareholders meeting today. As the company is losing market share, its CEO's compensation package remained high. Shareholders are expected to speak out.

According to Reuters Estimates, Lehman Brothers (NYSE: LEH) is expected to report $1.87 earnings per share this quarter, compared with $1.69 a year ago. Investors will want to hear about its subprime mortgage woes.