Markets will also be watching industrial production for April at 9:15 a.m., especially since the Empire Manufacturing survey Monday was a surprising negative 9.02, after two months of expansion. Manufacturers in the New York region received fewer orders, but the volatile number does not necessarily signal an ongoing negative trend.
"I'm not overly shaken by that Empire number. I think [industrial production is] going to be a fair-to-middling number," said Tom Simons, money market economist at Jefferies.
Industrial production is expected to rise 0.3 percent in April, after 0.5 percent the month earlier.
On the positive side, there are also housing starts, expected to be up 3.7 percent at 1.26 million, when they are reported at 8:30 a.m. Simons said he expects to see a solid housing number, showing continued strength in the sector.
Stocks bounced Monday, with the S&P 500 closing at a new all-time high of 2,402, up 11. The Nasdaq was also at a high of 6,149, up 28. The Dow was higher at 20,981, up 85 after making a failed pass at 21,000.
Oil's surge higher set a positive tone, with West Texas Intermediate jumping 2.1 percent to $48.85 per barrel. Brent was also higher, trading near $52 per barrel. Oil was not cited as a negative so much when it was falling, but the move higher was
Energy stocks were up 0.6 percent Monday.
Simons said the bond market was also watching the gains in oil, which came after Russia and Saudi Arabia said they would like to see the production deal among OPEC and other producers extended to March 2018.
Citigroup analysts say there's a 60 to 70 percent chance the producers could also increase the 1.8 million barrels a day they are cutting by another 300,000 to 500,000 barrels.
The S&P 500 had met resistance under 2,400, and now that it closed at 2,402, traders are looking for the next leg up.
"A lot of technicians are talking about [S&P 500] 2,440. It would be nice to see a little power come back to the small caps and the banks to validate this move. That's what's missing," said Scott Redler, partner with T3Live.com.
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