US pre-open: Futures trade higher ahead of more earnings

Wall Street futures were in the green ahead of the bell on Tuesday ahead of more key earnings reports.

As of 1220 BST, Dow Jones futures were up 0.63%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.80% and 0.82% higher, respectively.

The Dow closed 215.65 points lower on Monday as a busy week of earnings kicked off with updates from some of the nation's biggest banks.

Corporate earnings will again be in focus on Tuesday, with Johnson & Johnson and Hasbro set to report later in the morning, while Netflix will update after the close.

Elsewhere, Bloomberg revealed that Apple will decelerate hiring and spending on growth in 2023 as part of an effort to prep for a potential economic downturn, while IBM lowered cash flow forecasts despite reporting earnings that beat earnings and revenue estimates.

AvaTrade's Naeem Aslam said: "The US and European stock futures are trading cautiously lower as traders react to the employment news from the tech giant Apple which said that it would slow down its hiring and keep a more close eye on its cost.

"When it comes to Apple, it is important that traders pay attention to the bigger picture, which is that the company is set to launch an aggressive line of new products next year which means a slow down in the hiring process is only going to be a very short term game while the future of the company looks solid."

On the macro front, June building permits and housing starts data will be published at 1330 BST, while Federal Reserve vice chair Lael Brainard will deliver a speech at 1935 BST.

Reporting by Iain Gilbert at Sharecast.com