Futures Edge Higher After Stocks Log Worst Drop in 2013
U.S. stock index futures climbed Tuesday, a day after major averages logged their worst one-day performance in nearly three months, tracking gains in European shares and ahead of a key services sector report.
Stocks tumbled more than 1 percent each on Monday amid renewed worries over Europe and as investors took a pause after the Dow topped 14,000 for the first time since October 2007 last week.
(Read More: Why Investors Should Book Profits Now)
Dell was taken private in a $24.4 billion buyout deal by founder Michael Dell and Silver Lake, in the biggest leveraged buyout since the 2008 financial crisis. Dell shareholders will receive $13.65 a share. Shares were temporarily halted following the announcement.
On the economic front, investors will be looking ahead to the Institute for Supply Management's January non-manufacturing index, which tracks monthly changes in the services sector, out at 10 a.m. New York time. Economists polled by Reuters expect a reading of 55.2 in January, down from 55.7 in December. A reading above 50 still indicates a sector expansion.
(Read More: US Stocks Look 'Very Favorable': Goldman's O'Neill)
Among earnings, Yum Brands beat earnings forecasts for the fourth quarter, but shares tumbled after the parent company of KFC and Pizza Hut said same-store sales in its China division fell 6 percent and it now expects to post a mid-single digit earnings decline for 2013 from the prior year.
Kellogg rose after the cereal maker reported a narrower-than-expected quarterly loss, thanks to improvements in Latin America and stood by its full-year forecast.
BP gained after the British oil company topped earnings expectations, thanks to a strong performance from its refining division. The company also expects four new major upstream projects to begin production by the end of 2013.
And Archer Daniels Midland edged higher after the agribusiness giant posted higher earnings, helped by strong global demand for oilseeds.
Disney, Chipotle Mexican Grill, Panera Bread and Zynga are among notable companies scheduled to post earnings after the closing bell. (Read More: Disney Earnings Preview: All Eyes on ESPN and Theme Parks)
European shares were higher as investor confidence was boosted by a series of earnings releases and positive business activity data released in the euro zone.
President Barack Obama will meet with chief executives from 12 companies including Goldman Sachs's Lloyd Blankfein and Yahoo's Marissa Mayer on Tuesday to discuss deficit reduction and immigration, according to an unnamed White House official.
In addition, the Securities and Exchange Commission (SEC) will meet on Tuesday to review the decimalization of the stock market, which it helped begin in the 1990s.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
TUESDAY: ISM non-mfg index, Blackberry Z10 available in Canada, new Apple 128 GB iPads available; Earnings from Disney, Aflac, Chipotle, Panera Bread, Shutterfly, Take Two Interactive, Zynga
WEDNESDAY: Weekly mortgage apps, oil inventories; Earnings from Arcelor Mittal, GlaxoSmithKline, CVS Caremark, IntercontinentalExchange, Marathon Oil, Ralph Lauren, Time Warner, News Corp, Visa, Akamai, Allstate, Green Mountain Coffee, Yelp
THURSDAY: Bank of England announcement, ECB announcement, jobless claims, productivity and costs, consumer credit, Fed balance sheet/money supply, chain-store sales; Earnings from Credit Suisse, Philip Morris, Sony, Cigna, Noble Energy, Sprint, NYTimes, Activision Blizzard, Hasbro, LinkedIn, Coinstar, Opentable
FRIDAY: International trade, wholesale trade, monthly crop report; Earnings from Nissan, Moody's
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