US STOCKS-Dow futures lackluster after scorching rally; Big Tech earnings in focus

All three indexes kicked off the busy earnings and data week higher in the previous session, with a jump in oil major Chevron helping the Dow log its longest winning streak in over six years. General Electric climbed 4.8% after raising its annual adjusted profit forecast, betting on steady demand for aircraft engine spare parts and services from airlines looking to cash in on surging air travel.

Dow futures were subdued on Tuesday, lagging Wall Street peers, following an 11-day rally by the blue-chip index, while investors awaited quarterly earnings from megacap technology companies.

Results from Google-owner Alphabet and Microsoft , due after the bell, will be a test for their hefty valuations. The megacaps rose 0.5% and 0.8%, respectively, in premarket trading. U.S. tech giants are expected to signal an end to a nearly year-long slowdown in their cloud businesses as signs of economic resilience encourage clients to boost technology spending, while a pickup in digital ads will also aid their profits.

"The results, so far, have been much better than expected. In fact, corporate guidance is pointing to a rosy outlook for Q3 results," said Peter Cardillo, chief market economist at Spartan Capital. "Nonetheless, while we expect the summer rally to continue, investor exuberance is likely to lessen in the near-term, portending a less vigorous rally."

The tech-heavy Nasdaq Composite index has rallied 34.3% this year, helped by outsized gains in rate-sensitive megacap growth companies on optimism over artificial intelligence and hopes of an end to the U.S. Federal Reserve's tightening cycle. With the central bank on track for another 25-basis point interest rate hike this week, policymakers face a choice over how much weight to put on recent economic data.

At 06:58 a.m. ET, Dow e-minis were up 11 points, or 0.03%, S&P 500 e-minis were up 4 points, or 0.09%, and Nasdaq 100 e-minis were up 39.5 points, or 0.25%. All three indexes kicked off the busy earnings and data week higher in the previous session, with a jump in oil major Chevron helping the Dow log its longest winning streak in over six years.

General Electric climbed 4.8% after raising its annual adjusted profit forecast, betting on steady demand for aircraft engine spare parts and services from airlines looking to cash in on surging air travel. General Motors inched up 0.5% after the automaker lifted its full-year profit outlook as it plans to invest less in new products and cut operating costs through the end of next year.

Rivals Tesla and Ford added 1.3% and 0.4%, respectively. U.S.-listed shares of Chinese companies such as Alibaba and Bilibili added 1.3% and 3.6%, respectively, as investors cheered pledges of support in the readout from a Politburo meeting in China.

3M Co rose 2.2% after the industrial conglomerate raised its annual adjusted profit forecast. On tap at 10 a.m. ET is consumer confidence data that is expected to rise to 111.8 in July from 109.7 in June.