By Sara Sjolin, MarketWatch

Time Warner Cable rallies premarket on takeover news

U.S. stocks-index futures continued to weaken shortly before the opening bell on Tuesday after a report on orders for durable goods that matched expectations.

The headline number for durable-good orders fell 0.5% in April, but orders for core capital goods -- a proxy for business investment -- climbed 1% to mark the second straight gain.

Also read: Signs of revival in business investment seen in April durable-goods report (http://www.marketwatch.com/story/signs-of-revival-in-business-investment-seen-in-april-durable-goods-report-2015-05-26)

Positive readings on recent economic data have been greeted as negative news for markets, as investors fret that the Federal Reserve will have more ammunition to raise interest rates sooner rather than later.

Futures for the Dow Jones Industrial Average (YMM5) pulled back 43 points, or 0.2%, to 18,181, while those for the S&P 500 index (ESM5) lost 7.3 points, or 0.3%, to 2,117.30. Futures for the Nasdaq 100 index (NQM5) gave up 16.5 points, or 0.4%, to 4,512.25.

U.S. markets were closed for Memorial Day on Monday.

The benchmarks were keying off weakness from last week, when Federal Reserve Chairwoman Janet Yellen warned that a rate hike is still in the cards for 2015. Stronger-than-expected inflation data on Friday further added to speculation that the first monetary tightening will come before the end of the year, as growth in consumer prices is moving closer to the Fed's target.

The dollar rallied on the back of the inflation data on Friday and continued its ascent on Tuesday (http://www.marketwatch.com/storyno-meta-for-guid). The ICE dollar index (DXY) jumped 1% to 97, while the greenback climbed to an almost eight-year high against the yen at Yen122.74, up from Yen121.56 on Monday.

Data: Economic figures out on Tuesday will also be scrutinized by investors for any strength or weakness that could play into the timing of a Fed move.

Orders for durable U.S. goods fell a seasonally adjusted 0.5% in April, matching the forecast by economists polled by MarketWatch. Yet orders minus transportation rose 0.5%, the Commerce Department said Tuesday.

"Given that rate hikes will always be 'data dependent', bullish traders won't want to see a meet or beat on April's durable-goods orders," said Brenda Kelly, head analyst at London Capital Group in a note.

"We are back to the heady days where bad news is positive for equities. Assuming we ever left those days," she added.

At 9 a.m. Eastern Time, the Case-Shiller home-price index and FHFA home-price index for March are due, followed by May consumer confidence and new home sales for April at 10 a.m. Eastern.

Fed speakers: Fed Vice Chairman Stanley Fischer speaks on "the Fed and the global economy" in Tel Aviv, Israel at 7:30 p.m. local time or 12:30 p.m. Eastern Time.

In a speech on Monday, Fischer said he saw short-term rate at 3.25%-4% in three to four years (http://www.marketwatch.com/story/feds-fischer-sees-short-term-rate-at-325-4-in-three-to-four-years-2015-05-26)

Richmond Fed President Jeffrey Lacker, who is not a voting member of the Federal Open Market Committee this year, gives a speech on financial stability at Louisiana State University in Baton Rouge, La. at 8:10 p.m. Eastern.

Earnings: Reporting ahead of the bell, AutoZone Inc.(AZO) said third-quarter same-store sales rose 2.3%, while earnings per share climbed 13% to $9.57.

Then after the bell, TiVo Inc.(TIVO) is expected to post first-quarter earnings of 7 cents a share, unchanged from a year earlier.

Movers and shakers: Shares of Time Warner Cable Inc.(TWC) surged 8.5% ahead of the bell, after Charter Communications Inc. (CCMMV) said it will buy the cable-TV company (http://www.marketwatch.com/story/charter-to-merge-with-time-warner-in-55-billion-deal-2015-05-26-61034117) for $55 billion in a cash-and-stock deal. Charter shares were 3.7% higher premarket.

Cerulean Pharma Inc. (CERU) jumped 8.7% ahead of the bell after the biotech company said the U.S. Food and Drug Administration has granted orphan drug designation to its CRLX101 drug, a treatment for ovarian cancer

Other markets: European stock markets were mainly lower as investors continued to track developments in Greece's bailout negotiations (http://www.marketwatch.com/story/greece-wont-meet-imf-repayments-in-june-interior-minister-says-2015-05-24). The euro traded as low as $1.0884 on Tuesday, its lowest level since April 28, down from $1.0978 on Monday

Asian markets closed mixed (http://www.marketwatch.com/storyno-meta-for-guid), while oil (http://www.marketwatch.com/storyno-meta-for-guid)(CLN5) and metals prices were hit by the dollar rally.

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