1. Iran and western powers reach historic nuclear deal
Iran and six world powers reached a long-awaited nuclear deal that would end sanctions on Tehran in exchange for curbs on the country's disputed nuclear program after more than two weeks of negotiating in Vienna early on Tuesday.
The accord will allow Iran to resume oil exports, sending crude prices down by more than $1 in New York and London. A deal is viewed as bearish for oil prices, as Iran reportedly hoards 30 million barrels of crude in its reserves ready for export.
An outflow of Iranian oil could depress crude prices in a global market already oversaturated by a glut of oversupply.
2. Big bank earnings
The largest U.S. bank, JP Morgan Chase (NYSE:JPM), will report second-quarter results ahead of the opening bell on Tuesday. Wells Fargo (NYSE:WFC) is also due to release second quarter earnings ahead of the open.
JPM is projected to report earnings of $1.44 a share on revenue of $24.5 billion, compared to earnings of $1.46 a share a year earlier.
Wells Fargo is expected to post second-quarter earnings of $1.03 a share on revenue of $21.7 billion, up from $1.01 a share a year earlier.
Besides bank earnings, Johnson & Johnson (NYSE:JNJ), Yum! Brands (NYSE:YUM) and CSX (NYSE:CSX) also report quarterly results.
3. U.S. data in focus
Market players looked ahead to U.S. retail sales data later in the session for further indications on the strength of the economy and the timing of an interest rate hike.
The Commerce Department is expected to report that retail sales rose by 0.2% in June, after rising 1.2% in May. Core sales are forecast to gain 0.5%, after increasing 1.0% in May.
The U.S. is also to release data on import prices and business inventories later Tuesday.