Wall Street was set for a lower open on Tuesday after a flood of quarterly earnings reports showed disappointed revenues and more evidence of a struggling housing market.
Goldman Sachs Group Inc lost 2.5 percent to $142.10 in premarket trading after posting lower second-quarter earnings and revenue.
International Business Machines Corp fell 4.5 percent to $123.90 a day after reporting second-quarter revenues rose 2 percent but still missed estimates as new technology services contracts declined.
Fellow Dow component Johnson & Johnson dropped 1.7 percent to $58.56 premarket after the diversified healthcare company said revenue fell far short of expectations and cut its full-year profit forecast for the second time this year.
Texas Instruments Inc also missed revenue expectations, caused by weaker-than-expected orders from one mobile phone customer, identified by analysts as Nokia . Its shares slumped 5.7 percent to $24.09.
Last night's earnings didn't impress. Clearly this morning's numbers don't impress. But they do speak in a very clear way to the fact that risk is being repriced and any kind of a robust rebound is in jeopardy, said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
There is this growing sense that we could be in for a very, very soft second half.
S&P 500 futures dropped 10.1 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 88 points, and Nasdaq 100 futures fell 16.5 points.
The latest quarterly results compounded disappointing revenues from General Electric and two big banks last week. Investors have keyed in on the top-line numbers for any signs of growth in the economy.
Adding to the dour tone on Wall Street, U.S. housing starts fell more than expected in June to their lowest level in eight months, supplying further evidence the economy lost momentum in the second quarter.
Apple Inc , Yahoo Inc , Altera Corp and Gilead Sciences Inc are among companies expected to report later Tuesday.
Among the bright spots, U.S. motorcycle maker Harley-Davidson Inc climbed 5 percent to $24.80 premarket after recording better-than-expected results, lifted by a return to profitability at its in-house finance arm.
In mergers and acquisition news, Blackstone Group LP and TPG Capital LP are unlikely to pursue a bid for RadioShack Corp , two sources said. RadioShack tumbled 8 percent to $19.75.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)