U.S. Stocks May Give Back Ground In Early Trading

After moving sharply higher over the two previous sessions, stocks may give back ground in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 101 points.

Traders may look to cash in on the recent strength in the markets amid lingering concerns about the outlook for interest rates and the economy.

The notable two-day rally seen last Friday and Monday lifted the Nasdaq and the S&P 500 to their best closing levels in over a month.

A steep drop by shares of 3M (MMM) may weigh on the Dow, with the diversified manufacturer plunging by 4.5 percent in premarket trading.

3M is under pressure after reporting weaker than expected fourth quarter earnings and providing disappointing guidance. The company also announced plans to cut 2,500 jobs.

Fellow Dow component Verizon (VZ) may also move to the downside after reporting mixed fourth quarter results and forecasting 2023 earnings below analyst estimates.