Earnings season picks up Tuesday, with results due before the opening bell from Citigroup(C), Coca-Cola(KO), Domino's Pizza(DPZ) and Johnson & Johnson(JNJ). Yahoo(YHOO) and Intel(INTC) are set to report in the afternoon.
Shares of Burberry(BBRYF) fell by nearly 4% after the company announced its CEO -- Angela Ahrendts -- would be leaving for a job at Apple(AAPL).
"The fact that the European markets are all positive even with the looming deadline" of the U.S. government's debt limit is a "sorry perception on the sorry shenanigans of Washington," said Alastair McCaig, market strategist for IG in London.
Most major Asian markets ended the day with modest gains, also based on hopes for a U.S. deal.