Futures are rallying

US stock futures are slightly higher ahead of the market open on Tuesday and after an ugly session yesterday.

Near 7:10 a.m. ET, Dow futures were up 68 points, S&P 500 futures were up 10 points, and Nasdaq futures were up 23 points - all less than 1%.

The Nasdaq closed down more than 3% on Monday, after biotech stocks got clobbered and the iShares Nasdaq Biotechnology index fell 6% for its worst one-day performance in four years. The S&P 500 closed down 2%.

Also yesterday, Goldman Sachs and RBC Capital cut their targets on the S&P 500 for the year.

"The impetus for these reductions is that our models now incorporate a slower pace of economic activity in the US and China and a lower oil price than we had been previously assuming," Goldman's David Kostin wrote in a client note. The firm cut its target to 2,000 from 2,100.

RBC Capital's Jonathan Golub lowered his target to 2,100 from 2,325.

Economic data due today include the S&P/Case Shiller home price index at 9:00 a.m. ET, the Conference Board's consumer confidence report at 10:00 a.m.

Weekly crude oil inventories from the American Petroleum Institute after the closing bell.