Futures on major U.S. stock indices point to higher opening on Tuesday, the first trading day of February, after Dow recorded its biggest January rally since 1997 in the previous month.

Futures on the S&P 500 are up 0.46 percent, futures on the Dow Jones Industrial Average are up 0.33 percent and Nasdaq100 futures are up 0.64 percent.

On Monday, U.S. stocks ended higher despite ongoing unrest in Egypt as investors took heart in the Suez Canal's continued operation and U.S. economic data that topped expectations.

On the economic front, ISM manufacturing for the month of January will be released after the markets open and is expected to show a slight deterioration in activity Economists are forecasting that ISM manufacturing index for the month of January will be 58.20 against 58.50 in the previous month.

Shares of BP Plc. (NYSE:BP) declined 2.46 percent to $46.30 in pre-market trading session on Tuesday after the company reported a full year loss due to to the impact of last year's oil spill in the Gulf of Mexico.

For 2010, BP reported a pre-tax loss of $3.7 billion, down from a pre-tax profit of $16.6 billion in 2009. The group said that in the full year it took a $40.9 billion hit as a result of the oil spill.

On the earnings front, major companies including Pfizer, C.H. Robinson, Emerson, United Parcel, McGraw Hill and Lexmark International are due to report their quarterly earnings during the day.

The euro declined 0.55 percent to 1.3768 against the dollar and the yen gained 0.64 percent against the greenback.

Crude oil futures declined 0.68 percent to $91.56/barrel and gold futures advanced 0.28 percent.

European stock markets are currently trading higher with FTSE 100 up by 44.17 points, DAX30 up by 68.94 points and CAC 40 down by 34.78 points.