Stock futures pointed to a lower open on Wall Street on Tuesday, after the previous session's strong rally, with futures for the S&P 500 down 0.1 percent, Dow Jones futures flat and Nasdaq 100 futures up 0.2 percent at 5 a.m. EDT.

* Banks will again be in focus. According to a source familiar with official talks between banks and regulators, about 10 of the 19 largest U.S. banks being stress tested will be instructed by regulators to raise more capital.

The banks have been negotiating with the regulators about the depth of their capital needs, should the recession prove to be deeper and longer than anticipated.

* American International Group Inc is expected to post a first-quarter loss on Thursday, but the embattled insurer's results will not trigger a new capital injection from the U.S. government this time, a source familiar with the matter said on Monday.

* The tech sector will be in the spotlight after telecoms gear maker Alcatel-Lucent reported bigger-than-expected first-quarter losses as slowing economic growth hurt demand, sending its shares sharply lower in Paris.

* Shares of HealthSouth jumped 7 percent after the bell on Monday, when the healthcare company posted its first-quarter results.

* Shares of D.R. Horton Inc fell 3.9 percent to $12.97 percent in extended trade on Monday after the homebuilder reported a wider-than-expected loss in the second quarter.

* Shares of MGM Mirage rose 4.3 percent to $9.85 in extended trade on Monday after the casino operator reported first-quarter earnings and said it is evaluating a variety of options, including asset sales, to address liquidity needs.

* Saab Automobile, the Swedish unit of struggling U.S. carmaker General Motors , said on Tuesday it was not in talks with Italian peer Fiat SpA about a takeover.

* A number of companies are due to report results on Tuesday, including Avon Products Inc , CVS Caremark Corp , Electronic Arts , Kraft Foods , Pulte Homes Inc
, Tenet Healthcare , Walt Disney Co and Weyerhaeuser Co .

* On the macroeconomic front, investors will keep an eye on the ISM nonmanufacturing index for April, due at 1400 GMT.

* European stocks rose in early trade, led by buoyant banking shares such as UBS and Barclays , while mining shares such as Rio Tinto surged along with metal prices, a rally fueled by hopes of a recovery in world demand.

* U.S. shares climbed on Monday, driving the S&P 500 into positive territory for the year as investors bet banks' capital shortfalls may be manageable and housing data reignited hopes the economic recession is easing.

* The Dow Jones industrial average <.DJI> rose 214.33 points, or 2.61 percent, to 8,426.74. The Standard & Poor's 500 Index <.SPX> gained 29.72 points, or 3.39 percent, to 907.24 -- its first close above the 900 level since early January. The Nasdaq Composite Index <.IXIC> climbed 44.36 points, or 2.58 percent, to 1,763.56.

On the year, the Dow Jones industrial average is down 4 percent and the S&P 500 is up 0.4 percent.

(Reporting by Blaise Robinson; editing by Karen Foster)