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Dow is set to leap at the open, with earnings and the weak dollar in focus

  • The Dow Jones industrial average and other major indexes were set to open sharply higher Tuesday, as earnings season kicks into high gear.
  • The move came after the dollar fell to a three-year low against the euro.

The Dow Jones industrial average and other major indexes were set to open sharply higher Tuesday, tearing toward fresh record highs as earnings season kicks into high gear.

The Dow Jones industrial average e-mini futures were up nearly 1 percent, or 243 points, ahead of the U.S. markets re-opening for trading after the long Martin Luther King, Jr., Day holiday weekend.

U.S. stocks had soared to a record close in the last session, with the Dow finishing the session at an all-time high following robust corporate earnings reports.

Earnings and corporate news were still in focus during the first trading day of the holiday-shortened week, with Citigroup, UnitedHealth, Comerica, and CSX some other major brands set to publish their latest quarterly results.

Investors were upbeat after earnings at J.P. Morgan Chase and Wells Fargo beat expectations last week. S&P 500 earnings are expected to increase by 11.8 percent for the fourth quarter, according to Thomson Reuters I/B/E/S.

The broader move higher in U.S. index futures also came on the back of dollar weakness in the past week, with the greenback falling to a three-year low against the euro in the last session.

Still, the softer dollar was supportive of U.S. manufacturing and exports, explained Frank Troise, managing partner at SoHo Capital.

He added that the move higher in U.S. stocks more generally was the result of markets "starting to price in expectations of inflation."

The only significant data point Tuesday is the latest Empire State Manufacturing survey, set to be reported at 8:30 a.m. ET.