Stock futures rose on Tuesday after solid manufacturing data from China eased concerns over the world's second-largest economy.
S&P 500 futures were up 0.21%, Dow Jones Industrial Average futures gained 0.14%, and Nasdaq futures rose 0.15%.
Manufacturing activity in China improved in October to its best level in two years. The official manufacturing purchasing managers index rose to 51.2 in October, up from 50.4 in September, according to the National Bureau of Statistics. The measure has improved for three straight months. Improvement in the sector comes as a relief after stretches of weak growth in the manufacturing-focused economy.
Manufacturing activity in the U.S. will be in the spotlight on Tuesday morning as well. The ISM manufacturing index for October and construction spending for September will be released mid-morning.
Pfizer (PFE - Get Report) fell 3.2% in premarket trading after issuing a disappointing outlook for earnings. The drugmaker said it expects full-year earnings of $2.38 to $2.43 a share, narrowing the upper-range of its guidance from $2.48. Analysts had anticipated full-year earnings of $2.46 a share. Pfizer also missed third-quarter profit, reporting adjusted net income of 61 cents a share, a penny below estimates. Revenue rose 8% and came in roughly in line with consensus.
Gannett (GCI - Get Report) jumped 6% in premarket trading after abandoning its bid to purchase newspaper publisher Tronc (TRNC) . The two had failed to reach an agreement on price after months of talks. Tronc shares slumped 15%.
Coach (COH) shares were under pressure after the fashion accessories retailer missed quarterly sales estimates. The company reported a 1% increase in revenue to $1.04 billion, though coming in short of $1.07 billion consensus. Coach forecasts fiscal 2017 revenue growth in the low-to-mid single digits.
Archer Daniels (ADM - Get Report) rose 3% after earnings topped estimates thanks to a jump in agricultural services revenue. Third-quarter net income improved to 58 cents a share from 41 cents in the year-ago quarter. Adjusted earnings came in at 59 cents a share, above estimates of 46 cents.
Kellogg (K - Get Report) increased 2% as cost cuts and improved margins boosted third-quarter earnings 42%. Adjusted profit jumped to 96 cents a share from 85 cents a year earlier. Analysts had expected earnings of 87 cents a share. Revenue fell 2.2% as currency exchange dragged on topline growth.
Royal Dutch Shell (RDS.A - Get Report) jumped 4% before the bell after swinging to a profit in its third quarter. The oil company reported quarterly profit of $1.4 billion, reversing a loss of $6.1 billion in the year-ago quarter. Shell managed to turn a profit as it focused on cost cutting in the face of a prolonged period of low oil prices.
Angie's List (ANGI - Get Report) climbed more than 10% after announcing it had hired financial advisers to explore a potential sale. A sale would be among a number of strategic options the company could pursue. The home-improvement search engine reported a wider quarterly loss than expected, though new memberships rose.
Three-fifths of S&P 500 companies have reported earnings so far this season. Of those that have reported, 73% have exceeded earnings estimates, while 55% have passed revenue forecasts. Third-quarter earnings are expected to grow 3.1%, according to Thomson Reuters, snapping the longest earnings recession since 2009.
The Federal Open Market Committee will convene on Tuesday morning to discuss monetary policy. The Federal Reserve's policy-making group will conclude the meeting on Wednesday afternoon with a statement, but no press conference is scheduled.
"While the market is widely anticipating the Fed to keep policy unchanged in Wednesday's announcement, the statement itself should hold plenty of clues as to the Fed's objective for rates at the final meeting of 2016," said Lindsey M. Piegza, chief economist at Stifel. "If it's anything like last year, and the Fed intends to follow through with a year-end hike, the language this month will no doubt provide specific guidance; reinforcing expectations for another increase come December."
Valeant Pharmaceuticals (VRX) dropped sharply in the final hour of trading on Monday on reports its former CEO and chief financial officer are the focus of a criminal probe. Ex-CEO Michael Pearson and ex-CFO Howard Schiller are the focus of the U.S. Department of Justice investigation. The probe centers around possible accounting fraud.