US equity futures were edging lower pre-bell Tuesday as prospects for a peace agreement in the Middle East dimmed with the US not seeking to extend the ceasefire agreement with Iran that expired Monday.
Dow Jones Industrial Average futures were 0.1% lower, S&P 500 futures were down 0.4%, and Nasdaq futures were 1.2% lower.
Iran would shift to a "fully offensive" military posture to break the US naval blockade if diplomatic efforts to end the war fail, Reuters reported Tuesday, citing a senior Iranian official. Asked by reporters if the US was seeking to extend the ceasefire, President Donald Trump said no, according to Reuters.
Traders digested the latest round of earnings, with Home Depot (HD) reporting higher fiscal Q2 adjusted earnings and net sales.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.3% at $91.10 per barrel and US West Texas Intermediate crude 0.7% higher at $84.33 per barrel.
Housing starts for July, slated for 8:30 am ET, are expected at 1.345 million units annually, down from 1.427 million, according to estimates compiled by Bloomberg. The July import price index is expected to show a 0.1% month-over-month gain after a 0.3% increase previously. The export price index is projected to hold steady, compared with a decrease of 0.6% previously.
The July industrial production report, due at 9:15 am ET, is forecast to show a 0.3% gain following a 0.1% increase in the prior month. Pending home sales for July, slated for 10 a.m. ET, are expected to hold steady after a drop of 5.4% in the prior month.