US pre-open: Futures edge lower as rally eases up ahead of earnings season

US stock futures slid on Tuesday, as the recent rally looked to ease up a little ahead of the third quarter earnings season.

The Dow Jones Industrial Average is expected to open approximately down 21 points, while the S&P 500 and the Nasdaq are set to begin the session four and 11 points lower respectively.

Wall Street rallied on Monday, with the S&P 500 rising for a fifth consecutive session, as a series of economic reports appeared to take a hike in interest rates off the table for this year.

“The US market is catching its breath for the moment, but it is well positioned ahead of the New York open as a marginal decline in the futures market is nothing to be alarmed over,” said IG’s market analyst David Madden.

“US dealers can always fall back on the comfort the Fed are becoming less likely to hike interest rates this year, which will keep the bulls happy.”

Earnings season on the way

In company news, the third quarter earnings season gets unofficially underway when Alcoa reports after the closing bell on Thursday.

Pepsi rose 1.87% in pre-market trading after the soft drinks giant posted better-than-expected earnings per share ahead of the bell, even though its third quarter revenue fell 5% and its net income slumped 73%.

Chemical group Dupont surged 4.10% ahead of the bell after announcing late on Monday that its long-standing chief executive Ellen Kullman will retire on 16 October.

Apple and Facebook declined 0.52% and 0.64% respectively ahead of the bell, after the European Union’s top court suspended a 15-year-old agreement that allowed technology firms to move customer data to the US from Europe.

On a quiet day on the economic front, San Francisco Federal Reserve president John Williams, a voting member of the Federal Open Market Committee, will give a speech on the economic outlook in San Francisco at 2230 BST.

Elsewhere, Asian stocks rallied, boosted by news that the Bank of Japan might further loosen its monetary policy this week, while European stocks moved in tight ranges amid a mixed bag of economic data.

The dollar was broadly flat against the main currencies, while gold futures rose 0.20% to $1,138.06.

Oil prices were mixed, with West Texas Intermediate declining 0.32% to $46.11 a barrel, while Brent crude rose 0.20% to $49.35 a barrel.