Updated from 6:03 a.m. EDT
 
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Here are five things you must know for Tuesday, March 28:

1. -- U.S. stock futures rebounded slightly Tuesday and European shares rose as investors regained some optimism over tax cuts and fiscal stimulus from the Trump administration.

"Markets appear reluctant to take the Trump disappointment too much further at this stage," said Ric Spooner of CMC Markets, in a blog post. "With U.S. economic growth showing signs of improvement and the (Federal Reserve) clearly embarked on a monetary tightening cycle, the significant correction that has already occurred in bonds and the U.S. dollar may already reflect an adequate wind back of the market's Trump exuberance."

The Dow Jones Industrial Average on Monday ended in the red, its eighth day of losses in a row and its longest losing streak since August 2011. Stocks were under pressure for much of the trading day as Wall Street contemplated the way forward for the Trump White House after its defeat on health care reform. The S&P 500 fell 0.10% on Monday, while the Nasdaq gained 0.20%.

The U.S. economic calendar on Tuesday includes International Trade in Goods for February at 8:30 a.m. EDT, the S&P Case-Shiller Home Price Index for January at 9 a.m., and Consumer Confidence for March at 10 a.m.

Kansas City Fed President Esther George will give the keynote speech at a forum for women in banking in Midwest City, Okla., at 12:45 p.m., while Dallas Fed President Dennis Kaplan will take part in a moderated discussion on foreign relations in Dallas, at 1 p.m.

2. -- American Airlines (AAL - Get Report)  will take a $200 million stake in China Southern Airlines  (ZNH) in the second move by a U.S. carrier into the world's fastest-growing commercial aviation market. 

American will own about 2.68% of China Southern's outstanding shares after paying $1.55 billion Hong Kong dollars ($200 million) for a special issue of 270.6 million shares sold Tuesday by China Southern, which is Asia's biggest commercial airline by traffic.

"We are two of the biggest carriers in the world and our networks are highly complementary," said American Airlines President Robert Isom in a statement.

The move marks the second foray into China's growing aviation market, which could overtake the U.S. in terms of passenger volume within the next decade, after Delta Airlines took a 3.55% stake in China Eastern Airlines for around $450 million in 2015.

3. -- Amazon (AMZN - Get Report) said Tuesday it purchased Souq.com, the Middle East's biggest online retailer, for an undisclosed amount.

The announcement comes a day after state-backed firm Emaar Malls disclosed an $800 million counteroffer.

"Amazon and Souq.com share the same DNA -- we're both driven by customers, invention, and long-term thinking," said Russ Grandinetti, a senior vice president at Amazon. "Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We're looking forward to both learning from and supporting them with Amazon technology and global resources. And together, we'll work hard to provide the best possible service for millions of customers in the Middle East."

The acquisition is expected to close in 2017.

4. -- Activist investment firm Red Mountain Capital Partners called on footwear company Deckers Outdoor (DECK) , the owner of the UGG boots brand, to sell itself. 

The fund said it has met with the board and management team of Deckers over the past two years to discuss the business. It added, however, that the value of "a sale to a strategic or financial buyer is substantially higher than the risk-adjusted value of the standalone operating plan" the company's management issued in February.

"This underperformance has been driven largely by management's consistently poor capital allocation decisions," said Red Mountain's managing partner. Willem Mesdag.

Red Mountain owns about 3.3% of Deckers' outstanding shares.

The Red Mountain campaign comes after another activist fund, Marcato Capital Management, last month said it planned to talk to directors and officers at Deckers, adding that discussions might focus on "strategic alternatives" such as a potential sale of the company or its "businesses or assets." Marcato has reported holding a 6% stake in Deckers.

Deckers shares were inactive in premarket trading on Tuesday.

5. -- Shares of Darden Restaurants (DRI - Get Report) rose 3.9% in after-hours trading on Monday after the parent company of restaurant chains Olive Garden and LongHorn Steakhouse topped analysts' earnings expectations. 

Darden also announced Monday it reached a deal to buy Cheddar's Scratch Kitchen, a 165-restaurant chain in Texas, from private-equity stockholders.

FactSet (FDS - Get Report) reported fiscal second-quarter adjusted earnings of $1.81 a share, ahead of estimates of $1.80.

Earnings are also expected Tuesday from Carnival (CCL - Get Report) , Dave & Busters (PLAY - Get Report) , McCormick (MKC - Get Report) , Sonic (SONC) and Verint Systems (VRNT - Get Report) .