US pre-open: Futures point to open in the red as oil prices rebound

US stock futures slid ahead of Tuesday's session, as investors remained cautious about a number of key reports that will be released later this week.

The Dow Jones Industrial Average is expected to open approximately down 27 points, while the S&P 500 and the Nasdaq are set to begin the session four and 11 points lower.

”The Dow has been in decline since May, and now that the US reporting season is coming to an end, and the Fed’s meeting is on traders’ minds, the downward trend is here to stay,” said IG’s analyst David Madden.

“Dealers are very much divided over the possibility of an interest rate hike next month, but those who don’t foresee a rate increase can’t be convinced to buy into the market.”

The economic calendar is likely to grab the headlines on Wednesday and Friday, with the ADP and non-farm payrolls reports respectively on tap, but on Tuesday the only noteworthy data is a report on factory orders for June at 1500 BST.

Earnings in focus

With little on offer in terms of economic data on Tuesday, the earnings season takes centre stage yet again, with a number of Wall Street heavyweights set to report on Tuesday.

Among the companies that published results ahead of the bell, office products supplier Office Depot climbed 1.27% in pre-market trading, even though its second quarter sales missed expectations.

The group added it plans to shut another 175 stores within the end of 2015, with an additional 60 to be closed in 2016.

Oilseeds, corn and wheat processor Archer-Daniels Midland shed 0.12% in pre-market trading after its second revenue and earnings both fell short of estimates.

Healthcare firms CVS Health and Aetna are also on tap ahead of the opening bell, with DreamWorks Animation and Walt Disney set to report after the close.

“Somewhat a dark horse compared to the flashier likes of Google, Amazon, Apple and Netflix, Disney has nevertheless consistently broken its all-time highs this year, and looks set to announce yet another strong quarter,” said Connor Campbell, financial analyst at Spreadex.

Oil prices rebound

Elsewhere in world markets, most indices in Asia continued to fall, although the Shanghai Composite Index jumped 3.7% on news of a regulatory clampdown on short-selling to curb volatility.

European stocks fell, breaking a five-session winning streak, with oil and gas stocks leading the decline as investors sifted through a raft of earnings reports.

The dollar was broadly flat against the yen and retreated 0.12% and 0.29% against the pound and the euro respectively, while gold futures

Oil prices staged a solid rebound after plunging on Monday, with West Texas Intermediate climbing 1.57% to $45.89 a barrel, while Brent gained 1.65% to $50.35 a barrel.