US pre-open: Futures climb on upbeat earnings

US stock futures pointed to a higher open on Tuesday, as investor awaited the latest reports in the earnings season.

The Dow Jones Industrial Average was expected to open approximately 58 points higher, while the S&P 500 and the Nasdaq were expected to begin the session up seven and 17 points respectively.

US stocks rallied on Monday notching their best one-day gain in three weeks, with investors buoyed by new monetary easing measures from China's central bank and upbeat earnings reports.

Japanese and Chinese stocks closed firmly in positive territory, while European markets followed the same path and posted solid gains in the morning session, as markets continued to benefit from The People’s Bank of China's decision to cut reserve ratio.

"This game-changing move is still working its way through world equities, which are trading higher from Asia through Europe, to an expected higher open in the US," said CMC Markets' analyst Jasper Lawler.

However, Greece’s Athex Composite Index slumped over 3% amid concerns Athens will shortly run out of cash.

The earnings season continues on Tuesday, with a number of Wall Street heavyweights set to report.

Telecoms Verizon Communications Inc. rose 0.42% in pre-market trading after reporting first quarter earnings of $1.02 a share against estimates of 95 cents per share.

Tech group United Technologies Corp. climbed 1.1% ahead of the bell after posting better-than-expected first quarter earnings, but revenue fell short of analysts' expectations as currency headwinds weighed on sales.

Security and aerospace group Lockheed advanced 0.36% before the open after its first quarter profits declined less than expected. The company posted profit of $878 million, or $2.74 a share, against expectations of $2.50 share.

After the bell, Yahoo Inc. is expected to report first-quarter earnings of 18 cents a share.

Despite being billed as a potentially very difficult period for US stocks, the current earnings season has so far exceeded estimates but analysts remained wary of a market characterised by low expectations.

Energy companies, large multi-nationals and retailers were always the ones facing a tough earnings season on account of tumbling energy prices, a strong dollar and weather-related sales declines, respectively," said Craig Erlam, senior market analyst at Oanda.

"With many of these still to report in the coming weeks, we’ll see a lot of pessimism yet and the consensus is still that overall profits will decline."

The dollar rose 0.5% against the euro and climbed 0.1% against both the pound and the yen, while gold futures climbed 0.39% to $1,198.30.

Oil prices fell, with West Texas Intermediate losing 0.9% to $57.35 a barrel, while Brent crude shed 1% to $62.72 a barrel.