By Sara Sjolin, MarketWatch

Results from Hasbro, Halliburton, Kimberley-Clark on deck; 75% of reports so far have beaten views

U.S. stock futures inched higher on Monday, setting Wall Street on track for a round of fresh records, as traders continued to cheer the prospects for tax reforms and a better-than-expected earnings season.

What are stock indexes doing?

Futures for the Dow Jones Industrial Average gained 15 points, 0.1%, to 23,292, while those for the S&P 500 index rose 0.25 points to 2,574.25. Futures for the Nasdaq 100 index added 3 points, or 0.1%, to 6,114.

The small gains come after the major U.S. stock indexes scored all-time closing highs on Friday, marking the 24th time in 2017 that all three main benchmarks simultaneously closed at records (http://www.marketwatch.com/story/dow-sp-shape-up-for-more-records-after-senate-clears-big-hurdle-to-tax-reform-2017-10-20). The S&P 500 index ended 0.5% higher, the Dow average climbed 0.7%, and the Nasdaq Composite Index advanced 0.4%.

What's driving the market?

Stocks have been lifted by renewed hopes that President Donald Trump's administration will be able to push on with tax reforms, after the Senate passed a budget blueprint for the next fiscal year. Expectations for a major tax overhaul -- including tax cuts -- have been credited with helping spur a rally in U.S. stocks in the wake of Trump's presidential election win in November.

Read:What's next for a tax overhaul after the Senate passed its budget (http://www.marketwatch.com/story/whats-next-for-a-tax-overhaul-after-the-senate-passed-its-budget-2017-10-20)

Corporate results are another market driver right now, as the third-quarter earnings season continues at full steam. On Monday, earnings from Hasbro Inc. (HAS) , Halliburton Co. (HAL), VF Corp. (VFC) and Kimberly-Clark Corp. (KMB) are expected to before the market opens.

See:Tech earnings -- the iPhone X, other new gadgets that will matter this holiday season (http://www.marketwatch.com/story/tech-earnings-the-new-gadgets-that-will-matter-this-holiday-season-2017-10-20)

Earnings from U.S. companies have largely been better than forecasts. Around 75% of the S&P 500 companies that have reported so far have beat earnings expectations, according to FactSet data.

What are strategists saying?

-- "Investors are likely [to] continue ignoring overstretched valuations, and keep driving equities higher for the remainder of the year, if they believe fiscal reforms will be implemented soon," said Hussein Sayed, chief market strategist at FXTM, in a note.

"Although we might continue to see hurdles in the weeks to come, Republicans will put all their efforts into passing a tax reform package, as it is considered the most critical issue of the 2018 mid-term elections," he added.

-- "The dollar bulls have taken another leap forward as Friday's moves higher on Treasury yields have been sustained into the new trading week. Tax reform/fiscal expansion in the U.S. would likely prove to be a game changer on the outlook for inflation and the dollar," said Richard Perry, market analyst at Hantec Markets, in a note.

What are other assets doing?

The Japanese yen fell and the Nikkei 225 index rallied after Prime Minister Shinzo Abe's party easily won a majority in Japan's snap general election (http://www.marketwatch.com/story/japans-abe-wins-by-a-landslide-now-aims-to-change-constitution-2017-10-23) on Sunday. Abe's win raises the prospect for continued accommodative monetary policy, which tends to weaken the yen and boost stocks in the country.

Read:Japan's Nikkei rises for a 15th straight session after Abe's election win (http://www.marketwatch.com/story/japans-nikkei-rises-for-a-15th-straight-session-after-abes-election-win-2017-10-23)

Other Asian markets closed mixed, while European stocks struggled for direction in the early going.

The dollar rose, continuing higher on the prospect of tax cuts. The ICE Dollar Index was up 0.2% at 93.856. Metals were largely lower, pressured by the stronger greenback.

Oil prices climbed after the Organization of the Petroleum Exporting Countries said over the weekend that compliance with its production cuts has reached 120%. The cartel also said "all options are left" for rebalancing the market, seen as reinforcing the view that the output pact will be extended when OPEC meets in November.

Which stocks are in focus?

Shares of Tesla Inc.(TSLA) climbed 1.6% ahead of the bell after the electric-car maker reached an agreement to set up its own manufacturing facility in Shanghai (http://www.marketwatch.com/story/tesla-reaches-deal-to-set-up-a-factory-in-china-2017-10-22), according to people briefed on the plan.

U.S.-listed shares of Royal Philips NV(PHG) fell 0.4% in premarket trade after the Dutch technology giant reported a 15% drop in third-quarter profit (http://www.marketwatch.com/story/philips-profit-down-15-still-backs-guidance-2017-10-23).

Cisco Systems Inc. shares (CSCO) could also move after a Bloomberg News report that the company is nearing a deal to buy (http://www.marketwatch.com/story/cisco-reportedly-close-to-acquiring-broadsoft-2017-10-22) telecommunications-focused software company BroadSoft Inc.(BSFT) .

What data are traders watching?

The Chicago Fed national activity index for September comes out at 8:30 a.m. Eastern Time.

There are no Federal Reserve speakers on deck this week as the central bank has entered its "blackout" period ahead of its Oct. 31-Nov. 1 policy setting meeting.

(END) Dow Jones Newswires

October 23, 2017 05:36 ET (09:36 GMT)