Dow set to catch its breath after racking up 320-point rally

U.S. stock futures pointed to a muted open Tuesday, setting the Dow up for a breather after its 320-point rally pinned on strong economic data that offset trade-related fears.

Dow Jones Industrial Average futures YMU8, +0.21%edged up by 31 points, or 0.1%, to 24,805, while S&P 500 futures ESU8, +0.13%added 2.35 points, or 0.1%, to 2,789.75. Nasdaq-100 futures NQU8, +0.28%tacked on 10.75 points, or 0.2%, to 7,311.

On Monday, the Dow DJIA, +1.31%closed higher by 320.11 points, or 1.3%, as the S&P 500 SPX, +0.88%and Nasdaq Composite COMP, +0.88%each added 0.9%.

The blue-chip gauge turned positive for the year on Monday, flipping to a 0.2% gain, while the S&P and tech-laden Nasdaq have advanced 4.1% and 12%, respectively, as of Monday’s close.

Investors are bracing for a round of quarterly earnings reports that are expected to show off Corporate America’s health. PepsiCo Inc.’s PEP, -1.64%results are on tap before the open Tuesday, and a trio of giant banks — J.P. Morgan Chase & Co.JPM, +3.09% , Citigroup Inc.C, +2.68%and Wells Fargo & Co.WFC, +1.57% — are due to reveal their performance Friday.

Meanwhile, recent economics reports have been seen as underlining the strength of the American economy at a time when many investors are concerned about worsening relations between the U.S. and its major trading partners.

“With the prospect of a positive earnings season ahead of us, investors seem to have forgotten the threat of further trade tensions,” said Konstantinos Anthis, head of research at ADS Securities, in a note Tuesday.

Twenty-First Century Fox Inc. FOX, +1.34%is preparing to counter Comcast Corp.’s CMCSA, -0.06%latest offer for Sky PLCSKY, +2.01%with a new, higher bid, according to a Financial Times report.

A June report on U.S. small-business confidence is slated to hit at 6 a.m. Eastern Time. At 10 a.m. Eastern, a May reading on job openings is scheduled for release.

Check out: MarketWatch’s Economic Calendar

On the Federal Reserve front, no Fed officials are expected to give speeches on Tuesday.

European stocks SXXP, +0.27%traded mostly higher, while Asian markets largely closed with gains.

Gold futures GCQ8, -0.49%were falling, U.S. oil futures CLQ8, +0.56%were climbing, and the ICE U.S. Dollar Index DXY, +0.26%was roughly flat.

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