Before the bell: Futures higher as UBS, Lehman issue equity

The oil sector is in the news today as executives from Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX) and ConocoPhillips (NYSE: COP) head to Capitol Hill to testify on tax breaks, asking why "the cash-rich industry needs $18 billion in tax breaks over ten years." Instead, some think, this money can be used to subsidize renewable energy projects. In addition, the industry's record profits will likely be questioned. Meanwhile, oil prices were down to $100.94.

Dell (NASDAQ: DELL) plans to close its desktop manufacturing facility in Austin, Texas as it continues to cut costs and lay off workers -- 10% of its workforce -- saying these measures will save as much as $3 billion.

Apparently, Microsoft Corp. (NASDAQ: MSFT) is standing firm on its $44.6 billion bid for Yahoo Inc. (NASDAQ: YHOO) and won't raise it, according to The Wall Street Journal. While many analysts believed the software maker would meet Yahoo! half way and raise its bid, especially as the two met to discuss the bid, it seems Microsoft simply could not find a reason to do so. Or at least so is reported, which could also be a negotiation tactic. YHOO shares are down 1.3% in premarket trading (7:06 a.m.).

International Business Machines (NYSE: IBM) said late Monday it learned it has been temporarily suspended from receiving new business and future contracts while the Environmental Protection Agency is probing possible procurement integrity violations by IBM employees.

Goldman Sachs downgraded PepsiCo Inc. (NYSE: PEP) to Neutral from Buy due to valuation after the stock has gained some 14% this past year, handily beating the S&P 500's 7% decline. Also, Goldman believes Hansen Natural Corp. (NASDAQ: HANS) offers a more attractive upside. HANS shares are up 3.4% in premarket trading (7:30 a.m.).

CNET news interviewed the CEO of Cymbian, the company that has a dominant share of the market for smartphone operating systems. As a company that is threatened by Microsoft, Google (NASDAQ: GOOG), Research in Motion (NASDAQ: RIMM) and Apple (NASDAQ: AAPL), he was asked about the different system and pitched a middle ground between the iPhone and the Android.