US pre-open: Stocks to inch higher as bond yields retreat

US stock futures were pointing to modest gains on Wall Street as bond yields retreated from recent highs, with indices continuing to rebound after heavy losses last week.

In pre-market trade, futures on the S&P 500, Dow Jones and Nasdaq were tracking 0.2% to 0.4% higher. The S&P 500 rose 0.7% on Monday after closing last week out at 4,369.71, its lowest close since 26 June.

The yield on a 10-year Treasury was down 3 basis points at 4.31% ahead of the opening bell, after topping out at 4.35% the previous day – a level not seen since 2007.

On the agenda on Tuesday are speeches from members of the Federal Reserve, which will be closely watched after the minutes from the recent FOMC meeting triggered expectations of further possible rate hikes in the coming months.

Richmond Fed president Tom Barkin, Chicago Fed president Austan Goolsbee and Fed board member Michelle Bowman are all expected to talk later on, as markets start to turn their attention to the Fed’s annual Jackson Hole conference later this week (on Thursday to Saturday).

Housing data is also due for release by the National Association of Realtors, and is expected to show that existing home sales fell by 0.2% in July to a seasonally adjusted annual rate of 4.15m, slowing from the 3.3% decline experienced the previous moth.

A host of big-name corporates were on the bill to report earnings today, including Lowe's, Dicks Sporting, Urban Outfitters and Macy's.