Intel (INTC.O), the world's largest chipmaker, late on Tuesday forecast gross margins for the current quarter below expectations, while IBM (IBM.N) posted a quarterly revenue miss.

Bank of America (BAC.N), the No. 2 U.S. bank by assets, is scheduled to announce its results and is expected to provide an update on its cost-cutting efforts. Other major companies announcing results include PepsiCo (PEP.N), BNY Mellon (BK.N), BlackRock (BLK.N) and Halliburton (HAL.N).

ASML (ASML.AS), the world's top chip equipment maker, is to buy U.S. group Cymer (CYMI.O), a supplier of lithography light sources, for 1.95 billion euros ($2.5 billion) to speed up the development of a new chip manufacturing technology.

The Mortgage Bankers Association releases Weekly Mortgage Market Index for the week ended October 12 at 1100 GMT. The mortgage market index was at 1,008.1 and the refinancing index was 5,772.6 in the previous week.

Starbucks (SBUX.O) may face an inquiry into its British tax affairs after a senior member of parliament called for an investigation into how the company could avoid paying tax on 1.2 billion pounds ($1.93 billion) of sales since 2009.

The Commerce Department releases housing starts and permits numbers for September at 1230 GMT. Economists forecast a total of 810,000 permits in September, against 801,000 in the prior month.

Visa Inc (V.N) is set to name a new chief executive officer by the end of this month as a successor to current CEO Joseph Saunders, the Wall Street Journal reported, citing sources familiar with the process.

Shares in Intuitive Surgical Inc (ISRG.O) were down 4 percent after the bell on Tuesday following the release of its results.

European shares .FTEU3 rose 0.1 percent, led by Spanish banks and the broader financial sector after a decision by ratings agency Moody's to refrain from depriving Spain of its investment grade credit rating.

U.S. stocks rallied on Tuesday, giving the S&P 500 its best two-day advance in a month as strong earnings from Johnson & Johnson and other bellwether companies raised hopes for the rest of the U.S. reporting season.

The Dow Jones industrial average .DJI jumped 127.55 points, or 0.95 percent, to close at 13,551.78. The Standard & Poor's 500 Index .SPX advanced 14.79 points, or 1.03 percent, to finish at 1,454.92. The Nasdaq Composite Index .IXIC rose 36.99 points, or 1.21 percent, to end at 3,101.17.

(Reporting by Atul Prakash; editing by Patrick Graham)

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