Traders work on the floor of the New York Stock Exchange January 5, 2012.
Traders work on the floor of the New York Stock Exchange January 5, 2012. Reuters

The U.S. stock index futures point to a slightly higher open Tuesday ahead of the Institute for Supply Management’s (ISM) non-manufacturing Purchasing Managers’ Index (PMI).

The futures on the Dow Jones Industrial Average were up 0.07 percent, the futures on the Standard & Poor's 500 Index were up 0.17 percent and those on the Nasdaq 100 Index were up 0.02 percent.

Investors are likely to focus on the ISM’s non-manufacturing PMI to be reported Tuesday. The index, also known as the ISM Services PMI, which rates the relative level of business conditions, including employment, production, new orders, prices, supplier deliveries and inventories, is expected to fall to 55.2 in January, from 55.7 in December. A level above 50 represents expansion in the industry.

Investors will continue to focus on earnings reports with Cardinal Health Inc. (NYSE:CAH), Arch Coal Inc. (NYSE:ACI), Allergan Inc. (NYSE:AGN), Zynga Inc. (NASDAQ:ZNGA) and The Walt Disney Co. (NYSE:DIS) expected to announce their quarterly results Tuesday.

On Monday, the U.S. stocks dropped as investor sentiment turned negative amid the discouraging political developments in Europe which raised worries about the debt crisis looming over the euro zone. Investors were worried to note that Spain’s Prime Minister Mariano Rajoy and his party were facing corruption allegations. Subsequently the debt burden faced by Spain rose with its 10-year government yields climbing 23 bps to 5.44 percent.

Italy was also faced with political uncertainty as former Prime Minister Silvio Berlusconi’s popularity increased prior to be general election to be held in the country this month. The debt burden faced by Italy rose with its 10-year government yields climbing 14 bps to 4.47 percent.

Meanwhile, according to the data released Monday by the Commerce Department, the factory orders report, which measures the change in the total value of the new purchase orders placed with manufacturers each month, rose to 1.8 percent in December from 0.3 percent decrease in November.

The Dow Jones Industrial Average fell 0.93 percent, the S&P 500 Index was down 1.15 percent and the Nasdaq Composite Index declined 1.51 percent.

European markets rose Tuesday with London's FTSE 100 moving up 7.07 points, Germany's DAX 30 index advancing 2.74 points and France's CAC 40 gaining 10.48 points.

Asian stocks fell Tuesday with Hong Kong’s Hang Seng dropping 475.79 points, Japan’s Nikkei moving down 213.43 points and India’s Sensex declining 76.41 points. Meanwhile, China's service activity expanded in January at a faster pace than in the previous month, according to the HSBC Services Purchasing Managers’ Index released Tuesday. The Services PMI, a measure of nationwide service activity, was 54 in January, up from 51.7 in December.