(Reuters) - U.S. stock index futures rose on Tuesday, as focus turned to the U.S. corporate earnings season that kicks off this week, while worries of a trade dispute took a back seat in the wake of encouraging economic data.
Wall Street has gained for three straight days as strong U.S. jobs data and mild inflation numbers helped overshadow an escalation in trade wars after China and the United States last week slapped tariffs on $34 billion worth of each other’s goods.
The Dow Jones Industrial Average .DJI and the S&P 500 .SPX posted their biggest gains in more than a month on Monday.
PepsiCo (PEP.O) reported quarterly revenue and profit that topped analysts’ estimates on strong sales in the Frito-Lay unit. Its shares rose 1.9 percent in premarket trading.
Overall, S&P 500 companies are expected to post second-quarter profit growth of around 21 percent, slightly higher than what was forecast in April, according to Thomson Reuters data.
However, investors and analysts are expected to focus on the impact of trade tensions on corporate profits this earnings season, as companies lay out their strategies to tackle such threats.
China’s tariffs are expected to hurt automakers, industrial companies as well as soybean and other agricultural products producers.
On Tuesday, China’s commerce ministry raised “anti-dumping tariff rates” for some U.S.-made optical fiber products, effective July 11.
At 7:03 a.m. ET, Dow e-minis 1YMc1 were up 40 points, or 0.16 percent. S&P 500 e-minis ESc1 were up 3.5 points, or 0.13 percent and Nasdaq 100 e-minis NQc1 were up 17 points, or 0.23 percent.
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