Futures for the S&P 500 were rising 1.89 over fair value to 1,777.5 while futures for the Dow Jones Industrial Average were up50.12 over fair value to 15,823. Futures for the Nasdaq were off 17.32 over fair value to 3,484.
The keenly watched Federal Reserve policy meeting kicks off Tuesday, with strategists split on whether the central bank will continue to wind back bond purchases by $10 billion a month after the recent emerging markets turmoil. Many expect the Fed to stay on course and reduce bond purchases to $65 billion monthly, in a nod to the ongoing US economic recovery.
Markets closed lower Monday, extending a three-day drop on concerns over the outlook for emerging market economies triggered by a poor result for Chinese manufacturing.
Apple (AAPL), saw its shares dive more than 8% in after-hours trading Monday after reporting first-quarter profit of $13.1 billion, flat from a year earlier. Revenue rose to $57.59 billion against expectations for $57.47 billion. Yet shares fell after the iPad maker projected second-quarter sales of $42 billion to $44 billion, below estimates of $46.12 billion.
In earnings Tuesday, Ford (F) is expected to post fourth-quarter earnings of 27 cents a share, while Yahoo! (YHOO) is projected to post earnings of 39 cents a share. American Airlines (AAL), AT&T (T) and Pfizer (PFE) will also report. Chemicals company DuPont (DD) reported a doubling in fourth-quarter net profit and said it would launch a $5 billion share repurchase program. Profit rose to $185 million or 20 cents a share, from $92 million or 9 cents a share from a year earlier.
In global economic news, the U.K. economy expanded at the strongest pace since 2007 last year as gross domestic product rose 1.9%, data from the U.K. Office for National Statistics showed. In the fourth quarter, growth slowed to 0.7% from 0.8% in the prior quarter in line with expectations.
On the domestic front, durable goods orders slumped in December by the most in five months, raising the risk business investment will fall early this year. Durable good orders fell 4.3% after a 2.6% gain in November, a Commerce Department report showed today in Washington.
The S&P/Case-Shiller home price index rose in line with expectations to post its largest increase since February 2006. The house price index rose at an annualized rate of 13.7% in November from a year earlier after a gain of 13.6% in October
Consumer confidence is out at 10 a.m and expected to rise to 79 in January from 78.1 in December.
European markets gained Tuesday, regaining ground from their largest three day fall since June 2013. Germany's DAX was rising 0.23% while the FTSE was 0.27% higher. The Hang Seng closed off 0.07% while the Nikkei was 0.17% lower.