Stocks Face Opening Slide

High oil and a selloff in Japan send the futures tumbling.
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Stocks were poised for an opening-bell tumble Tuesday as oil prices soared to a three-month high and Japanese stocks had their worst session since last spring.

Index futures recently showed the

S&P 500

trading 5 points below fair value, while the Nasdaq 100 was set for an 11-point decline. The 10-year Treasury bond was down 3/32 in price to yield 436%, while the dollar rose against the yen and euro.

February crude jumped $1.52 to $65.44 a barrel as markets remained wary of the situation in Iran, where several Western powers want the U.N. to impose sanctions in response to stepped-up nuclear research. Supply disruptions in Nigeria were also bolstering energy bulls.

Overseas markets were uniformly lower, with London's FTSE 100 recently down 0.4% to 5717 and Germany's Xetra DAX losing 1% to 5460. In Asia, Japan's Nikkei fell 2.8% overnight to 15,806, while Hong Kong's Hang Seng shed 1.3% to 15,576. The slide in Japan followed a raid on Internet company Livedoor by prosecutors in Tokyo. Local reports say regulators suspect the company might have misled shareholders about a recent acquisition.

The

Dow Jones Industrial Average

, which spent three of last week's five sessions above 11,000, is now in danger of falling decisively below the marquee level. Two components,

IBM

(IBM) - Get Report

and

Intel

(INTC) - Get Report

, report earnings after the bell Tuesday.

Another component,

Wal-Mart

(WMT) - Get Report

, affirmed guidance for January same-store sales growth of 3% to 5% on Saturday. Gift card redemptions are helping improve January's disappointing 2.2% comps performance.

In other earnings news,

Continental

(CAL) - Get Report

posted a fourth-quarter loss of $43 million, or 53 cents a share, including a gain of about $85 million. The airline lost $128 million, or $1.58 a share, before items on a 17% rise in year-over-year revenue.

The mating dance around

Guidant

(GDT)

went another round late Friday when the medical device company urged shareholders to accept

Johnson & Johnson's

(JNJ) - Get Report

sweetened $71-a-share takeover offer. The stock-and-cash bid is competing with a $72-a-share offer from

Boston Scientific

(BSX) - Get Report

.