U.S. stock index futures were slightly lower Tuesday as investors looked to take a breather following a seven-day win streak on the Dow and S&P 500.
Major averages finished near session highs on Monday, with the S&P 500 within 1 percent of its 2007 peak and the Dow posting another record closing high. The blue-chip index is up more than 10 percent for the year.
However, Jim O'Neill, the chairman of Goldman Sachs Asset Management, said he was unconvinced by the rally.
"I am not that confident about what happens next and as to whether all these trends are going to continue," O'Neill wrote in a note late on Monday.
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And Thomas Lee, chief U.S. equity strategist at JPMorgan, said U.S. stocks are positioned for a pullback of up to 5 percent.
"There's a chance for the market to consolidate in the short-term," Lee said. "Flat would be a good outcome and I think a 5 percent drop is very possible."
Among earnings, Costco rose after the wholesale retailer posted higher-than-expected earnings, thanks to its membership fee increase and market share gains.
Yum Brands jumped after the parent company of KFC and Pizza Hut said same-store sales in China climbed 2 percent in February, surprising analysts who had expected a decline of 9 percent. The company also posted a 20 percent decline in the first quarter, less than the 25 percent drop the company had previously estimated.
Apple declined after Jefferies cut its target price on the iPhone maker to $420 from $500. Apple spiked in the previous session amid unconfirmed rumors that the next iPhone will include a fingerprint sensor and a near-field communications chip for mobile payments. In addition, traders buzzed about a possible special dividend from the tech giant.
(Read More: Apple Chart Looks 'So Bad That It's Good')
RadioShack slumped after Goldman Sachs downgraded the electronics retailer to "sell" from "neutral," calling the business model "challenged" and saying it sees "minimal equity value."
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The Treasury is slated to auction $32 billion in 3-year notes with the results available shortly after 1pm ET.
And the Treasury Department's monthly budget for February will be issued at 2 pm ET. Economists polled by Reuters forecast a $205 billion deficit, against a January deficit of $238 billion.
Small business optimism gained in February, according to the National Federation of Independent Business as owners seemed to overlook the fiscal policy tightening and made plans to increase capital spending.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
TUESDAY: 3-yr note auction, Treasury budget, Chevron analysts mtg
WEDNESDAY: Mortgage applications, retail sales, import/export prices, business inventories, oil inventories, 10-yr note auction; Earnings from Express
THURSDAY: Jobless claims, PPI, current account, Fed Governor Raskin speaks, natural gas inventories, 30-yr bond auction, Fed balance sheet, money supply, Samsung Galaxy S4 release; Earnings from Aeropostale
FRIDAY: Quadruple witching, CPI, Empire State mfg survey, Treasury int'l capital, industrial production, consumer sentiment, credit card default rates
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