Before the bell: As oil hits record high, dollar record low, futures slip

A day after markets rallied on rate-cut hopes, U.S. stock futures indicated a weak open this morning as oil prices reached a record high and the dollar found new record lows. Texas Instruments lowering estimates yesterday after the close and Japan PM resigning suddenly only help to agitate investors and add to uncertainty.

Yesterday, U.S. stocks rallied across the board as some good news from General Motors and McDonald's helped Wall Street already hopeful mood -- hopeful for a rate cut by the Federal Reserve. The Dow Jones Industrial Average rose 180 points, or 1.38%, the S&P 500 rose 1.36% and the Nasdaq Composite 1.5%.

Today, without much economic data, investors will continue to eye rising crude prices after they settled at $78.23 a barrel - 2 cents higher than the previous closing record, set July 31. Today, oil prices extended gains ahead of U.S. crude inventories report released today and as many worry about tight supplies. OPEC announcing it would boost output didn't alleviate concerns.

As oil hits records highs, the dollar hits record lows and fell against the euro due to expectations of Fed rate cut causing the U.S. interest-rate advantage over Europe will narrow amid the housing market slump, which also means the U.S. Federal Reserve may be the only central bank to cut rates. The dollar declined for a sixth day, the longest losing streak since April. The dollar declined against the yen too.

Overseas, Asian stocks were mixed with Japan's Nikkei sliding 0.5% after the announcement of Prime Minister Shinzo Abe intention to resign and the ensuing political uncertainty. Honk Kong, however, reached a new high.
European markets were also mixed.

Corporate news:

Texas Instruments (NYSE: TXN) are down 0.7% in premarket trading after the chipmaker raised its third-quarter EPS target, and tightened revenue forecast. The higher EPS numbers include gains from sale of a unit and the revenue numbers matched the Street's.

Burger King Holdings Inc. (NYSE: BKC) announced it has set nutritional guidelines to follow when targeting children under 12 in advertising, and would unveil a healthier kids menu.

Amgen (NASDAQ: AMGN) shares are up 1.5% in premarket trading after a U.S. panel of health experts gave it and Johnson & Johnson (NYSE: JNJ) declined to recommend restrictions on the use of their anti-anemia drugs in kidney disease patients. UBS upgraded Amgen to Neutral from Sell.

More corporate news: Before the bell: GOOG, TWX, MSFT, YHOO, AAPL ...