Futures on major U.S. indices point to a slightly higher opening Tuesday ahead of the report on nonmanufacturing composite index and teleconference among G7 leaders.
Futures on the S&P 500 are up 0.10 percent, and Nasdaq 100 futures are up 0.30 percent. Futures on the Dow Jones Industrial Average are up 0.20 percent.
Investors are likely to focus on the nonmanufacturing composite index, to be reported later Tuesday. The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers' Index , which measures the relative levels of business conditions including employment, production, new orders, prices, supplier deliveries and inventories, is expected to stabilize around 53.7 after peaking at 57.3 in February. The data is compiled from a survey of approximately 400 purchasing managers in the nonmanufacturing sector. On the index, a level above 50 indicates expansion and below indicates contraction.
Investor confidence can be affected by the absence of any bad news from the euro zone and anticipation on Tuesday's teleconference among G7 leaders.
On Monday, the U.S. markets were mixed, though investor confidence was dampened by disappointing economic data as the orders for manufactured goods declined 0.6 percent in April. The DJIA fell 0.14 percent, the S&P 500 Index rose 0.14 percent and the Nasdaq Composite Index was up 0.46 percent.
All major European indices were in the green as investors hoped that, during the teleconference, G7 leaders would put more pressure on European policy makers to act. Germany's DAX 30 Index rose by 16.61 points, and France's 50 CAC 40 advanced 22.47 points. London markets are closed Tuesday.
Asian markets rose Tuesday amid hopes that policy makers in Europe would take measures to stem the debt crisis and regain the economic growth momentum. Market sentiment was positive as China's services activity in May grew at the fastest rate in 19 months, according to the HSBC Purchasing Managers Index released Tuesday. The services PMI rose to 54.7 in May compared to 54.1 in April.