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Futures rally after China stimulus, earnings eyed

U.S. stock index futures rallied on Monday, with Dow futures up over 100 points, after China's central bank cut the amount of money that banks must hold as reserves.

It comes ahead of a number of major corporate reports, as first-quarter earnings season continues.

Morgan Stanley earned an adjusted 85 cents per share, beating estimates of 78 cents, with revenue also above forecasts. Morgan Stanley's results were helped in part by better-than-expected performance in investment management and fixed income.

Hasbro reported quarterly profit of 21 cents per share, swamping estimates of 8 cents, with revenue also beating forecasts by a wide margin despite the negative impact of the strong dollar. Hasbro saw particularly strong performance in its Transformers and pre-school units.

Halliburton beat estimates by 12 cents with adjusted quarterly profit of 49 cents per share, with revenue scoring a slight beat as well. But Halliburton does say it expects the oil sector to remain "challenged."

IBM is due after the bell.

European markets followed their Asian counterparts higher on Monday after China's central bank on Sunday lowered the reserve requirement ratio (RRR) for all banks by 100 basis points, buoying U.S. futures.

The wider-than-expected cut was the People's Bank of China's (PBOC) second reduction in two months, and marks a continuing effort by the world's second-largest economy to combat slowing growth.

Morgan Stanley
Adam Jeffery | CNBC

The rally follows sharp declines in European and the U.S stocks Friday following a selloff in Chinese futures over news of coming government regulation to expand short-selling and limit over-the-counter margin trading.

On the data front, the coming week will bring mainly housing market indicators.

Read MoreGreece's fate hangs in balance amid contagion fear

Greece also remains in focus for European markets. European Central Bank President, Mario Draghi, said this weekend that the country, which is running out of money and could default on its debts – and potentially leave the euro zone – had to try to save itself.

Meanwhile, Greek Finance Minister, Yanis Varoufakis, said in broadcast interview Sunday that if Greece were to leave the euro zone, there would be an inevitable contagion effect.

—CNBC's Peter Schacknow contributed to this report.