S&P 500, Dow futures dip as big banks' earnings roll in ahead of CPI data; IBM slides

JPMorgan Chase and Bank of America declined 2.7% and 0.8% despite reporting higher second-quarter profit.

Investors scrutinized the results for early signals on the health of corporate America as well as cues for market direction. The earnings season could prove pivotal for this year's equity rally, which has lifted the benchmark S&P 500 by about 10%.

At 7:14 a.m. ET, Dow E-minis were down 448 points, or 0.85%, and S&P 500 E-minis were down 13.75 points, or 0.18%. Nasdaq 100 E-minis were up 100.25 points, or 0.35%.

Nasdaq futures gained some ground after the tech-heavy index fell 1.6% on Monday.

Investors were also unsettled by hawkish comments from Fed Governor Christopher Waller, who said on Monday that the central bank may need to raise interest rates "in the near term" if inflation remains well above its 2% target.