Stocks have had a year to forget so far but U.S. markets may be due a bounce Tuesday.
U.S. stock futures were nudging higher ahead of the opening bell as investors try to recover from last month, when the Dow tumbled more than 5% to log its worst January since 2009.
Meanwhile, world markets suffered another battering Tuesday, taking their cue from Monday's sharp sell-off in U.S. stocks.
Japan's Nikkei index fell 4.2%, extending its losses this year to just over 14%. The slide has put the index well into correction territory, and erased a chunk of last year's stunning 57% gain. Hong Kong's Hang Seng also pushed into a correction, dropping nearly 3%.
"The nature of the sell-off has been sharp and appears to be overdone in the near-term, suggesting that the market could be due a technical bounce, especially if there is a whiff of upbeat macro news flow," said Gerard Lane, an investment strategist at Shore Capital.
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Looking ahead, the U.S. Census Bureau is scheduled to release its monthly report on factory orders at 10 a.m. ET. This could give cause for renewed anxiety after a weak U.S. manufacturing report fueled Monday's market plunge.
On the corporate side, BP (BP) shares declined after the oil and gas firm reported a drop in fourth-quarter earnings.
Shares of UBS (UBS) jumped after the Swiss bank reported better-than-expected quarterly earnings.
ARM Holdings (ARMH)' fourth quarter earnings disappointed some investors, sending shares lower in early trading.
Shares of KFC-owner Yum! Brands (YUM) jumped after it reported better-than-expected earnings.
And Michael Kors (KORS) was a standout. The retailer's stock rallied nearly 13% in premarket trading after a stellar earnings report and upbeat outlook.
