By Barbara Kollmeyer, MarketWatch

McDonald's among companies set to report results

U.S. stock benchmarks early Tuesday looked set to add to the previous session's rally, as investors focus on the prospect of tax reforms, while investors digest a deluge of corporate earnings from the likes of Dow components McDonald's Corp.

Data on confidence, home prices and home sales are also coming up.

Dow Jones Industrial Average futures jumped 112 points, or 0.6%, to 20,809, while S&P 500 futures added 4.25 points to 2,374.75. Nasdaq-100 futures added 12 points to 5,516.

Analysts said the focus on European politics was being replaced by U.S. concerns. These include the tax reforms promised for Wednesday from President Donald Trump's administration, who will mark his first 100 days in office on Saturday.

Monday's rally (http://www.marketwatch.com/story/us-stocks-poised-to-rally-as-investors-breathe-sigh-of-relief-over-french-vote-2017-04-24) was inspired by centrist Emmanuel Macron's win in the first round of the French presidential election, momentarily calming fears that antiestablishment politicians would challenge the status quo. Shaking off mounting anxieties around political uncertainty, so-called risk assets soared around the globe, highlighted by the best gains for U.S. stocks since March. The Dow soared 216.13 points, or 1.1%, to close at 20,763.89, while the S&P 500 advanced 1.1% to end at 2,374.15.

The Nasdaq Composite finished 1.2% higher at 5,983.82, marking a record finish for the tech-heavy gauge.

Read: Trump seeks corporate tax rate of 15% in plan (http://www.marketwatch.com/story/trump-seeks-corporate-tax-rate-of-15-in-plan-2017-04-24)

Bank stocks gained Monday, with the Financial Select Sector SPDR ETF (XLF), which tracks the S&P 500's financials rose 2.25% and Goldman Sachs Group Inc. (GS), for instance, up nearly 3%.

That positive momentum could continue, "particularly if Trump can kick-start his reform plans around taxation," Chris Beauchamp, chief market analyst at IG, said in a note to clients.

In the back of investors' minds are worries about a potential government shutdown on Saturday. But those may have eased, after Trump backed off on a demand for border-wall funding (http://www.marketwatch.com/story/trump-backs-off-demand-for-immediate-border-wall-funding-2017-04-24) seen as blocking a deal.

See:Should Wall Street fear a government shutdown? How stocks fared in the past (http://www.marketwatch.com/story/should-wall-street-fear-a-government-shutdown-heres-how-stocks-fared-during-past-closures-2017-04-21)

Turning to data, the Case-Shiller U.S. home-price index for February will be released at 9 a.m. Eastern Time. The Conference Board's consumer confidence survey for April and new-home sales for March are both due at 10 a.m. Eastern.

Check out:After 17 years, S&P 500 tech sector finally regains lost ground (http://www.marketwatch.com/story/after-17-years-sp-500-tech-sector-finally-regains-lost-ground-2017-04-24)

Stock movers: An long list of companies are reporting on Tuesday ahead of the bell. Better-than-expected results lifted shares of DuPont (http://www.marketwatch.com/story/dupont-offers-downbeat-outlook-for-current-quarter-2017-04-25)(DD) by 2% and Biogen Inc (http://www.marketwatch.com/story/dupont-offers-downbeat-outlook-for-current-quarter-2017-04-25).(BIIB) by around 5%. Rite Aid Corp.(RAD) jumped 4.6% on an earning beat (http://www.marketwatch.com/story/rite-aid-shares-jump-after-earnings-beat-2017-04-25).

Caterpillar Inc. (CAT)jumped in premarket trade after the industrial giant lifted its full-year revenue to a range of $38 billion to $41 billion, and reported better-than-expected results.

Lockheed Martin Corp.(LMT) saw its shares slide after reporting lower-than-expected revenues.

Shares of Coca-Cola Co (http://www.marketwatch.com/story/coca-cola-misses-first-quarter-earnings-expectations-2017-04-25).(KO)traded lower in premarket trade after the beverage giant missed first-quarter earnings expectations (http://www.marketwatch.com/story/coca-cola-misses-first-quarter-earnings-expectations-2017-04-25). It reported net income of $1.18 billion, or 27 cents per share, down from $1.48 billion, or 34 cents per share in the year-earlier period.

3M Co.(MMM) reported first-quarter results that beat expectations, with profits and sales rising above Street estimates (http://www.marketwatch.com/story/3ms-stock-jumps-after-profit-and-sales-rise-above-expectations-2017-04-25).

Eli Lilly & Co (http://www.marketwatch.com/story/eli-lilly-swings-to-loss-on-higher-sales-cuts-2017-eps-view-2017-04-25).(LLY)swung to a first-quarter loss (http://www.marketwatch.com/story/eli-lilly-swings-to-loss-on-higher-sales-cuts-2017-eps-view-2017-04-25) of $110.8 million, or 10 cents a share, stemming from the drugmaker's purchase of CoLucid Pharmaceuticals Inc.

Looking ahead are reports from McDonald's (MCD),

Straight Path Communications Inc.(STRP) rose nearly 4% in premarket action after the telecommunications company said that AT&T Inc. (T) has five days to match a "superior" buyout bid it has received. (http://www.marketwatch.com/story/straight-path-says-att-has-5-days-to-match-a-superior-buyout-bid-it-received-2017-04-25)

Read:Three infrastructure stocks to buy -- regardless of Trump's spending plans (http://www.marketwatch.com/story/three-infrastructure-stocks-to-buy-regardless-of-trumps-spending-plans-2017-04-25)

Other markets: European stocks rose modestly (http://www.marketwatch.com/story/european-stocks-snag-modest-gains-after-french-election-rally-2017-04-25) after the prior day's French election rally, while in Asia , equities rose across the board (http://www.marketwatch.com/story/asian-stocks-build-on-gains-and-this-time-china-joins-in-2017-04-24).

Investors in Asia kept a close eye on tensions in the Korean Peninsula. North Korea marked the anniversary of the founding its military with a large live-fire exercise, as a U.S. aircraft carrier strike group docked in South Korea as planned, reported Reuters (http://www.marketwatch.com/story/north-korea-reportedly-conducts-live-fire-exercise-as-us-submarine-docks-in-the-south-2017-04-25). There had been concerns that North Korea could mark Tuesday's anniversary with another nuclear test of that of a long-range missile.

See:White House calls in all 100 senators for unusual briefing on North Korea (http://www.marketwatch.com/story/white-house-to-brief-full-senate-as-trump-calls-north-korea-real-threat-to-the-world-2017-04-24)

The dollar rose against the yen, but fell against the euro and British pound .

Oil prices (http://www.marketwatch.com/story/oil-rises-as-bargain-hunters-snap-to-attention-2017-04-25) marked gains after Monday's sharp pullback, while gold prices saw fresh losses, down $5.90 to $1,271.70 an ounce.

 

(END) Dow Jones Newswires

April 25, 2017 07:53 ET (11:53 GMT)

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