The Dow Jones Industrial Average (DJI) is looking to pare a portion of Monday's losses, with futures on the blue-chip barometer pointed modestly north. With little in the way of economic data to digest today, traders will turn toward Washington, where fiscal-cliff negotiations continue to rage on.

Meanwhile, "Friday's inside day on the S&P 500 Index (SPX) indicated a likely volatility expansion in the near future," said Schaeffer's Senior Options Strategist Tony Venosa. "Monday's action showed a strong upside gap above both Thursday's and Friday's ranges. Unfortunately, selling took over after the ISM manufacturing data, and the market closed near yesterday's low, and below Friday's low. Keep an eye on the consumer discretionary and technology sectors, as they have both been leading the most recent rally."

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Futures on the Dow Jones Industrial Average are more than 22 points above fair value.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 674,368 call contracts traded on Monday, compared to 382,053 put contracts. The resultant single-session put/call ratio fell to 0.57, while the 21-day moving average stayed at 0.68.

Currencies and Commodities

• The U.S. dollar index is down 0.2% in pre-market trading to hover near $79.74.
• Crude oil has pulled back this morning, with the front-month contract 0.4% lower at $88.76 per barrel.
• Gold futures are also pointed south ahead of the bell, with the malleable metal shedding 0.8% to trade at $1,708 an ounce.

Earnings and Economic Data

There are no notable economic reports scheduled for today. However, AeroVironment (AVAV), AutoZone (AZO), Big Lots (BIG), Pandora Media (P), Toll Brothers (TOL), and Vail Resorts (MTN) will each take their respective turns in the earnings confessional.