-- US equity futures were higher pre-bell Tuesday as traders kept a close watch on the potential re-escalation of hostilities in the Middle East.
Dow Jones Industrial Average futures were 0.3% higher, S&P 500 futures were up 0.4%, and Nasdaq futures were 0.6% higher.
The UAE said that it was attacked by Iranian drones and missiles, while the US said it sank Iranian boats in the Strait of Hormuz.
President Donald Trump had said that the US would help guide vessels stranded in the Persian Gulf. In a post Monday on Truth Social, he said that a South Korean cargo ship had been damaged by Iran, but the US had shot down seven Iranian small boats.
"Other than the South Korean Ship, there has been, at this moment, no damage going through the Strait," Trump said.
Traders digested the latest round of earnings, with Palantir Technologies (PLTR) and Vertex Pharmaceuticals (VRTX) reporting higher Q1 adjusted earnings and revenue. HSBC (HSBC) also posted a Q1 increase in earnings and revenue.
Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.6% at $112.67 per barrel and US West Texas Intermediate crude 2.4% lower at $103.94 per barrel.
The international trade in goods report, scheduled for release at 8:30 am ET, is expected to post a deficit widening to $61 billion from $57.3 billion in the prior month, according to estimates compiled by Bloomberg. The purchasing managers' index composite final report for April, due at 9:45 am ET, i is seen coming in at 52.1 versus 52.0 previously.
March new home sales, due at 10 am ET, is seen coming in at a 652,000 annual rate. The April Institute for Supply Management's services index is projected at 53.7 versus 54.0 previously. March job openings from the Department of Labor's Job Openings and Labor Turnover Survey are expected to come in at 6.850 million compared with 6.882 million in the prior month.
Federal Reserve Vice Chair for Supervision Michelle Bowman is slated to speak at 10 am, while Fed Governor Michael Barr speaks at 12:30 pm.