U.S. stock index futures were sharply lower ahead of the open Tuesday after results after the bell on Monday from IBM and Texas Instrumentsdisappointed investors. But a flurry of reports due to be released ahead of trading could shift sentiment.
European shares were broadly lower, but mining firms made gains as metal prices rose on a weakening dollar. Asian indexes ended mixed, but mostly higher, with Chinese shares leading the gains.
Here's what guests on today's Squawk on the Street are watching before the opening bell:
Dog Days Ahead?
Neil Hennessy, portfolio manager and chief investment officer for Hennessy Funds, says he's very bullish on the markets right now, "but not in a way that suggests that we are going back to the very hot/cold markets that we have seen over the last 10 years – What I call the Boom and Bust Markets.
"I think we have entered a slow-growth phase where the market will appreciate approximately 8 to 12 percent a year," he says.
Companies are just as lean, if not more so, than they were in late 2002, he added, saying markets returned 12 to 15 percent on average from 2003 to 2007 depending on which market index you look at.
"One difference now is companies have a lot more cash on the books, i.e. the 30 Dow Jones Industrials have close to $500 billion in cash and short term investments," he says. "Basically, I think we will return to the days that EPS, P/S ratios, return on equity, cash flow and 'dividends'etc. will mean something."
So which stocks does Hennessy like?
The Dogs of the Dow now yield 4.5 percent and are very well diversified, he says, particularly:
Johnson & Johnson
See more of what these and other analysts and money managers have to say, and get the latest financial news. Watch Squawk on the Street every weekday morning starting at 9 a.m. ET.
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Disclosure: Hennessy owns the above-mentioned stocks through Hennessy Funds mutual funds.