Stock index futures down as Goldman results eyed

IBM will be in focus after the company late on Monday reported a decline in new technology services contracts in the second quarter, while a weaker euro hit revenue more than expected. IBM shares in Frankfurt were down 4.3 percent.

Meanwhile, Texas Instruments said weaker-than-expected orders from one mobile phone customer, identified as Nokia by some analysts, caused second-quarter revenue to miss Wall Street forecasts. Texas Instruments shares traded in Frankfurt were down 3.7 percent.

Investors eagerly awaited quarterly earnings from Goldman Sachs , Johnson & Johnson , Yahoo and Apple , seeking more insight on the outlook for corporate profits. Goldman Sachs shares in Frankfurt were up 0.8 percent.

Shares in Nokia jumped 4.1 percent on Tuesday after the Wall Street Journal reported the world's top cellphone maker has sent out headhunters to find a replacement for Chief Executive Olli-Pekka Kallasvuo.

Goldman Sachs executive Fabrice Tourre denied fraud and other accusations by U.S. regulators for his role in marketing a subprime mortgage product and asked a court on Monday to dismiss the case.

President Barack Obama and British Prime Minister David Cameron will hold talks on Tuesday overshadowed by controversy over BP Plc that could test the vaunted "special relationship" between their countries.

In macro economic news investors will eye U.S. housing starts at 1230 GMT. Economists in a Reuters survey forecast a 580,000 annualized rate versus 593,000 in May, and a total of 570,000 permits in June compared with 574,000 in the prior month.

Other economic news is the release of the Redbook Weekly U.S. Retail Sales at 1255 GMT.

The dollar eased on Tuesday, inching closer to a two-month low versus the euro hit last week as investors continued to cut long positions on more disappointing U.S. economic data.

European shares edged up on Tuesday, supported by gains in miners, but sentiment was fragile ahead of results from Goldman Sachs while Cable & Wireless Worldwide plunged after cutting its forecast.

Oil climbed to $77 on Tuesday as forecasts for a fourth consecutive weekly drop in U.S. crude inventories bolstered the positive influence of rising stock markets in most of Asia.

U.S. stocks rose on Monday, spurred by optimism ahead of earnings from key technology companies and after Dow component Boeing announced strong orders.

The Dow Jones industrial average <.DJI> added 0.6 percent, the Standard & Poor's 500 Index <.SPX> rose 0.6 percent and the Nasdaq Composite Index <.IXIC> gained 0.9 percent.

(Reporting by Joanne Frearson; Editing by Hans Peters)

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