Stock futures pointed to a rally Tuesday as crude oil bounced on news Russia and several key Organization of Petroleum Exporting Countries agreed to a production freeze.
S&P 500 futures added 1.1%, Dow Jones Industrial Average futures were up 1.1%, and Nasdaq futures jumped 1.5%.
Crude oil spiked after Russia's energy minister said the country had agreed with Saudi Arabia, Qatar and Venezuela to freeze oil production levels if other producers follow suit. The closed-door meeting in Qatar's capital of Doha comes as oil prices plumb new 13-year lows on record production levels, global oversupply, and signs of weaker demand. However, reports suggest Iran will not agree to such production cuts. West Texas Intermediate crude oil rose 1.4% to $29.86 a barrel.
Manufacturing activity in the New York region improved modestly in February. The Empire State Manufacturing Survey narrowed to a reading of negative 16.6 this month after a reading of negative 19.4 in January.
Chinese shares led Asian markets higher on their second day back from a week-long break. The Shanghai Composite closed 3.3% higher on Tuesday. Chinese markets had been closed in celebration of the Lunar New Year. Hong Kong's Hang Seng climbed more than 1%.
Home security company ADT (ADT - Get Report) surged 50% in premarket trading after agreeing to be acquired by private-equity firm Apollo Global Management. The all-cash deal worth $42 a share values ADT at a 56% premium to its closing price last week.
Pfizer (PFE - Get Report) shares were nearly 1% higher in premarket trading despite the company revising its fourth-quarter results lower after settling claims over its Medicaid rebates. The drugmaker said it lost 3 cents a share in its fourth quarter, down from previously reported profit of 10 cents a share.
Groupon (GRPN - Get Report) added more than 7% after a new securities filing from Alibaba (BABA - Get Report) showed the Chinese e-commerce site owning 33 million shares, worth a total stake of $95 million. Investors hope the 5.6% stake leads to possible sale talks.
Hormel Foods (HRL - Get Report) climbed 1.5% in premarket trading after nearly doubling quarterly profit. The food company generated earnings of 43 cents a share, above consensus of 37 cents a share. Hormel also boosted its full-year earnings guidance.
Zoetis (ZTS - Get Report) shares were on watch after the animal-health company reported a better-than-expected fourth quarter. However, the company did cut its sales estimates as a stronger U.S. dollar continues to eat into total revenue.