US stocks head for lower open with oil near $121 a barrel

Wall Street headed for a lower open Tuesday as investors reacted to downbeat first-quarter results from the financial and homebuilding industries and watched oil prices hit a new record near $121 a barrel.

With oil and other commodities prices at all-time highs, investors are worried that spending by U.S. consumers and companies may be crimped -- even if other economic factors improve later in the year.

Investors were disappointed Tuesday by first-quarter results from homebuilder D.R. Horton Inc., government-sponsored mortgage lender Fannie Mae and Swiss bank UBS.

D.R. Horton reported a quarterly loss of $1.3 billion and halved its dividend to 7.5 cents a share, while Fannie Mae posted a quarterly loss of $2.2 billion and said it would cut its dividend as well. UBS reported a loss of nearly $11 billion and said it is reducing its work force by about 7 percent.

In pre-market trading, D.R. Horton fell 6 percent, Fannie Mae dropped nearly 10 percent, and UBS fell more than 2 percent.

Dow Jones industrial average futures fell 10, or 0.08 percent, to 12,957. Standard & Poor's 500 index futures fell 2.30, or 0.16 percent, to 1,406.00, and Nasdaq composite futures fell 3.50, or 0.18 percent, to 1,977.00.

(Agencies)