US pre-open: Futures point to flat open ahead of bank earnings

At 1220 BST, Dow, Nasdaq and S&P 500 futures were all virtually unchanged. Last week, the Dow surged to new highs after Federal Reserve chairman Jerome Powell hinted that an interest rate cut could be on the horizon.

The main focus for the day will likely be on earnings reports from a number of major US firms, amid a somewhat bleak outlook for the earnings season.

Analysts expect S&P 500 earnings to have fallen 3% in the second quarter.

JP Morgan Chase shares were down 1.68% in pre-market despite beating expectations on the Street with its latest quarterly figures, while Goldman Sachs and Wells Fargo will also report before the open.

Oanda analyst Craig Erlam said: "The US is widely expected to have entered into an earnings recession in the second quarter which makes the outlooks for these firms all the more important.

"Citigroup got us off to an okay start but highlighted a few challenges that will likely be repeated by its peers over the coming days, most notably related to trading revenues and lower interest rates."

Elsewhere, Johnson & Johnson shares advanced ahead of the bell after its quarterly earnings and revenue beat expectations, while Facebook shares were a touch lower ahead of the social media giant's testimony regarding its digital currency venture at a Senate banking committee later in the session.

Netflix, United Airlines and Domino's Pizza were also set to post their second-quarter earnings on Tuesday.

In terms of data, June's import price index, advance retail sales and industrial production figures were all scheduled for publication at 1330 BST, while the NAHB housing market index for July and business inventories for May will be released at 1500 BST.