Stocks set to slip at open
Investors manufacturing reports after a sharp runup, show little reaction to lower-than expected inflation report.
NEW YORK (CNNMoney.com) -- U.S. stocks look ready to take a breather on Tuesday, after surging in the prior session, as investors showed little reaction to an lower-than-expected inflation report.
Dow Jones industrial average, S&P 500 and Nasdaq futures were lower before the opening bell.
Futures measure current index values against the perceived future performance, offering guidance on stock performance after the bell, though they're not always an accurate barometer.
Peter Cardillo, chief market economist for Avalon Partners, said the weak dollar has helped to fuel equities "with an influx of cheap money." He said that stocks might back off Monday's peak, but this is probably a temporary glitch in the markets as they continue to trend higher.
Stocks rallied Monday as investors bet on the weak dollar and Federal Reserve Chairman Ben Bernanke said interest rates will remain low amid a slow recovery.
The Dow Jones industrial average jumped 1.3% to close at 10,406.96, the highest level since October 2008; the S&P closed above the important bar of 1,100.
Economy: The government reported that the Producer Price Index, the key measure of inflation for manufacturers, edged up 0.3% in October. Excluding volatile food and energy prices, the core PPI fell 0.6%.
The PPI was expected to have risen 0.5% for the month, according to a consensus of economist opinion from Briefing.com.
The core PPI, which excludes volatile food and energy prices, was expected to have edged up 0.1% in October, according to Briefing.com consensus.
Shortly before the open, the Federal Reserve will release October reports for capacity utilization and industrial production.
Industrial production is expected to have risen 0.4% in October, according to the Briefing.com consensus. That's compared to a increase of 0.7% the prior month.
Companies: Home Depot (HD, Fortune 500) reported a decline in third-quarter earnings to 41 cents per share from 45 cents in the year-ago quarter. But the home improvement retail giant still managed to beat estimates of 36 cents per share, according to a consensus of analyst opinion from Thomson Reuters.
International markets: The Nikkei and the Hang Seng each closed lower, by a fraction of a percent. European markets were also trading lower, albeit slightly, in midday trading.
Other markets: Treasury prices fell, with the yield of the 10-year note rising to 3.36%.
The weak dollar recovered slightly Tuesday, rising against major international currencies, including the euro, the yen and the pound.
Oil prices slipped 12 cents to $78.78 a barrel in electronic trading.
The price of gold, which hit a new record on Monday when not adjusted for inflation, fell $7 an ounce to $1,132.
"Gold is down, but it's coming off a hysteric high," said Cardillo. 
