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Futures hold higher amid data

U.S. stock index futures pointed to a narrowly higher open Tuesday, as traders eyed data for hints on whether the Federal Reserve will hike interest rates in June.

Will the Fed raise rates in June or July?

Personal spending increased 1 percent in April, the biggest gain in more than six years. Personal income rose 0.4 percent.

The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, rose 0.2 percent last month after edging up 0.1 percent increase in March. In the 12 months through April the core PCE rose 1.6 percent after a similar increase in March.

The S&P/Case Shiller composite index of 20 metropolitan areas rose 5.4 percent year-over-year in March, matching the increase the month before and beating the 5.2 percent estimate from a Reuters poll of economists.

Treasury yields edged higher, while the U.S. dollar index held mildly higher. The euro was near $1.116 and the yen around 111.2 yen against the greenback as of 9:02 a.m. ET.

The Chicago purchasing managers' index (PMI) for May and consumer confidence for May are due later in the morning.

These reports come ahead of the all-important non-farm payrolls report on Friday, at the end of a shortened trading week on Wall Street because of the U.S. Memorial Day holiday on Monday.

"We expect a gain of only 120,000 in non-farm payrolls in May (Friday), partly owing to the strike by Verizon workers. Even putting the temporary distortions aside, employment growth could be weak enough to leave the Fed's decision next month on a knife edge, " Paul Ashworth, chief North American economist at Capital Economics, said in a report on Friday.

"Otherwise, April's personal spending data (Tuesday) should confirm that consumption growth got off to a much better start in (the second quarter)" he added.

Companies reporting quarterly earnings on Tuesday include Workday and TiVo. Medtronic posted results that beat expectations on both the top and bottom line.

WTI and remained above $49 per barrel on Tuesday, but below the $50-plus peaks hit on Thursday. An OPEC meeting this week will be closely watched, but is not expected to result in any production freeze.

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Correction: This story was updated to correct the next possible Fed hike is in June.