1. Trade fears ease: Global markets were firmly higher following signs that the United States and China were pulling back from the brink of a potential trade war.
US stock futures were pointing higher on Tuesday.
The Dow spiked 669 points, or 2.8%, on Monday — its third-biggest point gain on record. The Nasdaq gained 3.3% and the S&P 500 climbed 2.7%.
The upbeat mood in the markets marks a sharp reversal from last week, when fears over a trade war caused major losses.
“Trade relationships remain the dominant market driver, with market confidence skating on thin ice,” said Joshua Mahony, a market analyst at IG.
CNNMoney’s Fear & Greed index shows that “extreme fear” continues to drive investors.
2. Big pharma deal:GlaxoSmithKline( will buy Novartis’ stake in a consumer health joint venture the two formed in 2014. The $ 13 billion deal will give GSK 100% ownership of the business. )
The announcement comes less than a week after GSK dropped its bid to buy Pfizer’s consumer healthcare business. Shares in GSK jumped 3.5% in London after the announcement.
Novartis( said divesting from the venture will enable it to focus on the development and growth of its core businesses. Its shares were trading 1.7% higher. )
3. Facebook data scandal: Facebook shares dropped as much as 5% on Monday after the Federal Trade Commission confirmed it is currently investigating the company’s data practices.
A late upswing erased those losses, however.
Facebook( is struggling to cope with the fallout from the Cambridge Analytica data scandal. CEO Mark Zuckerberg is facing calls to testify before Congress. )
Former Cambridge Analytica contractor Christopher Wylie will appear before a British parliamentary committee on Tuesday.
US oil futures were 0.2% higher at $ 65.70 per barrel.
5. Earnings and economics:McCormick( is set to release earnings before the open. )Sonic( will follow after the close. )
Retailer lululemon athletica( will also report after the close. The company could face tough questions: Its CEO resigned in February after Lululemon claimed he “fell short” of its standards of conduct. )
Shares in H&M( declined 6.7% in Stockholm after the Swedish fashion retailer reported a drop in its first quarter profit. The company blamed unusually cold weather for sluggish sales. )
The Confidence Board will publish its US consumer confidence report for March at 10 a.m. ET. Last month it was at the highest level since 2000.
6. Coming this week:
Tuesday — Lululemon earnings; US consumer confidence
Wednesday — Blackberry, Gamestop and Walgreens Boots Alliance earnings; US fourth-quarter GDP final look
Thursday — Constellation Brands earnings;UK fourth-quarter GDP final look; US personal spending and consumer sentiment
Friday — US markets closed for Good Friday