U.S. stock index futures pointed to a higher open on Tuesday, as investors digested inflation data and some key earnings, after a strong close on Monday boosted by a sharp jump in oil prices.
Dow futures held about 80 points higher after the consumer price index rose 0.2 percent in October, matching estimates. Earlier, Dow futures briefly added 100 points.
Treasury yields edged higher after the data release, with the 10-year yield near 2.30 percent and the 2-year around 0.87 percent.
The U.S. dollar continued to trade flat against major world currencies, with the euro at $1.066 and the yen at 123.32 yen against the greenback as of 8:54 a.m.
Oil could keep a tight grip on the stock market Tuesday, as traders scrutinize inflation data for an indication on when the U.S. Federal Reserve may hike interest rates.
Industrial production for October showed a 0.2 percent decline.
The NAHB homebuilders sentiment survey is released at 10 a.m. and Treasury International Capital flow data are disclosed at 4 p.m.
On the earnings front, Home Depot posted better-than-expected earnings and revenue, while Wal-Mart beat earnings per share estimates by 1 cent.
Fed speakers will also be in focus Tuesday, with Fed Governor Jerome Powell at 12:35 p.m. at the Clearing House Annual Conference. Fed Gov. Daniel Tarullo speaks at 3:30 p.m. on the financial system and shadow banking. Meanwhile former Fed Chairman Ben Bernanke speaks at 4:10 p.m. at Brookings on the financial system, post-crisis.
The pan-European Stoxx 600 index was trading 2 percent higher Tuesday.
Stocks and bonds Monday confounded strategists who had expected a flight-to-quality trade, after coordinated terrorist attacks in Paris left at least 129 dead and dozens injured.
Equities were given a lift Monday by a sharp jump in oil prices, which was supported by geopolitical concerns following weekend terror attacks in Paris.
U.S. crude reversed three-straight days of declines to settle up $1.00, or 2.45 percent, at $41.74 a barrel on Monday.
The major U.S. averages also closed more than 1 percent higher, recovering some of last week's sharp losses.