IBT Staff Reporter

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.

The Bank of Canada raised its key interest rate by 25 basis points to 0.75 percent on Tuesday, as expected, but cautioned that the domestic and global recoveries will be slower than previously expected in a hint that any further hikes may be gradual.

Bank of New York Mellon Corp said second-quarter earnings more than tripled as higher stock prices and tighter credit spreads boosted its asset management and custody business.

PepsiCo Inc reported a quarterly profit just above analysts' expectations, helped by strength in international snack and beverage markets and the recent acquisition of its North American bottlers.

Stock index futures trimmed declines on Tuesday after data showed housing starts fell more than expected in June, but applications for building permits rose more than forecast.

Housing starts fell more than expected in June to their lowest level in eight months, a government report showed on Tuesday, supplying further evidence the economy was losing momentum during the second quarter.

PepsiCo Inc reported higher quarterly profit from operations, helped by strength in international snacks and beverage markets and the recent acquisition of its North American bottlers.

The euro fell to a session low against the dollar while Bund futures extended gains on Tuesday after Goldman Sachs (GS.N) released second quarter results. The euro fell to a low of $1.2840 EUR= from just above $1.2870 before the earnings were released, close to 2 cents from the high of $1.3028 reached earlier in the day.

Shares in Nokia jumped 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 Group Inc posted lower second-quarter earnings, hurt by its settlement of U.S. Securities and Exchange Commission fraud charges and the UK tax on bank executive bonuses.

UnitedHealth Group Inc posted a much higher-than-expected second-quarter profit increase on Tuesday, helped by results in its government health insurance plans for elderly and low-income Americans, and the company raised its full-year forecast.

All diamond producing African antions are now rallying behind Zimbabwe threatening to leave the Kimberley Process Certification Scheme if Zimbabwe was not allowed to market its diamonds freely. African countries, led by diamond rich Namibia, has already conveyed this decision to the KP.

Exports from India rose sharply by 32.2% in the first quarter of this fiscal to $ 50.8 billion and growth rate in June alone was 30.4% to US $ 17.75 billion as compared to $ 13.5 billion during June 2009. India's Commerce Secretary, Rahul Khullar stated that the first quarter (April-June 2010-11) exports reached a level of US $ 50.8 billion at a growth of 32.2% while the imports were $ 83 billion with a growth of 34% and a trade deficit of $ 32.2 billion.

Oil was little changed on Tuesday, pressured by declines in European stock markets but supported by expectations that U.S. industry data due later in the day would show a fall in crude inventories. European .FTEU3 shares fell, dragged lower by weakness in bank stocks as investors braced for results from Goldman Sachs (GS.N) due before the opening of the U.S. stock market.

The euro fell on Tuesday, reversing a climb to its highest against the dollar in more than two month, as European shares fell and investors reckoned its gains have been overdone before bank stress test results.

Stock index futures were lower on Tuesday after technology bellwethers International Business Machines and Texas Instruments posted quarterly revenues that fell shy of expectations.

China is satisfied that U.S. Internet giant Google Inc is complying with Chinese laws after it tweaked the way it directs users to an unfiltered search page, a senior official said on Tuesday.

Stock index futures were lower on Tuesday after technology bellwethers International Business Machines and Texas Instruments posted quarterly revenues that fell shy of expectations.

Toyota Motor Corp said on Tuesday it has been subpoenaed by a federal grand jury in New York to turn in documents related to a problem with a component in the steering mechanism in some of its vehicles.

Gold continued its downward journey on Tuesday with the global market witnessing a slump in demand. Gold for August delivery fell $6.30, or 0.5%, to $1,181.90 an ounce on the Comex division of the New York Mercantile Exchange, the lowest price for a most-active contract since May 21. Gold prices are down 6% from June's record highs.

The aviation industry's largest airshow was shifting its focus to military firepower on Tuesday against a backdrop of tighter budgets, while commercial air carriers were still buying planes in bulk.

Gold held above $1,180 an ounce in Europe on Tuesday as lower prices tempted some buyers back to the market after prices slipped to two-month lows in the previous session, but the technical picture remained weak. Gold has been pressured by concerns over deflationary signals from the United States and other economies, analysts said, while a recovery in appetite for assets seen as higher risk has also deflected some investment from the precious metal.

The euro eased a bit after hitting a two-month high against the dollar on Tuesday, but remained supported as weak U.S. economic data hurt the greenback. The euro rose as high as $1.3029 on trading platform EBS, with dealers saying key stop-losses -- closing of positions to cap loss-making trades -- had been taken out around $1.3010, with more above $1.3030. By 0929 GMT (5:29 a.m. EDT), it was up 0.1 percent on the day at $1.2955.

Emerging markets were in high demand in mid July, with bond fund inflows at a record, as investors chose dynamic developing economies over lagging advanced markets, EPFR Global said on Tuesday. Emerging market equity funds tracked by EPFR posted combined inflows of more than $3 billion for the week ended July 14, while emerging market bond funds took in $745 million, bringing their year-to-date inflows to an all-time high of $18.5 billion.

Can white elephants come in green? President Barack Obama flew to Holland, Mich., on Thursday to attend groundbreaking ceremonies for a new lithium-ion battery plant, which the White House advertised as an example of federal stimulus grants at work and a gateway to a clean-energy future.

The chief of Greece's Public Debt Management Agency (PDMA) said on Tuesday he was satisfied with the sale of 1.95 billion euros ($2.53 billion) of 13-week T-bills at a yield of 4.05 percent, the country's second debt sale since a giant EU/IMF emergency loan backstop agreed in May.

The European Bank for Reconstruction and Development warned on Tuesday of contagion risk from a sell-off in Hungary as Budapest appeared unwilling to back down in a disagreement with lenders over fiscal reform and a bank tax.

China on Tuesday denied a report that it had surpassed the United States last year to become the world's largest energy user.

Futures for the S&P 500, Dow Jones and Nasdaq were down 0.2 to 0.3 percent at 900 GMT (5 a.m. EDT), pointing to a lower open on Wall Street on Tuesday.