Volatile Chinese stocks continue to provide a difficult backdrop for US stocks which are set for a higher open on Tuesday. A slew of corporate earnings will be reported including Big Pharma’s Merck and Pfizer before the bell with more tech-sector fireworks possible after the bell when Twitter reports its latest quarterly update. China markets finished lower again after a volatile day that saw prices oscillate between gains and losses. Chinese stocks continue to look weak but it’s too soon to tell how the weakness will feed into the real economy. For today, markets are just breathing a sigh of relief that the falls in China weren’t as heavy as yesterday. BP shares are trading higher after quarterly results on Tuesday so that could be a catalyst for a recovery amongst US energy companies. Oil stocks especially have been worst performers during the fallout in China that stoked fears of slowing commodity demand. Shares of Baidu are expected to open lower by as much as 6% on Tuesday after guiding lower on its annual revenues projections, despite the Chinese search company beating second quarter profit and revenue estimates. It will be the first the first quarterly earnings report for Twitter without Chief Executive Dick Costello. Interim CEO and company co-founder Jack Dorsey is unlikely to have been able to institute any big turnaround in user growth and engagement since Costello’s exit. This is reflected in the relatively weak expectations for revenue and profit growth. Risks are skewed to the downside for Twitter and given the size of the moves seen in other top-flight Nasdaq stocks this season, Twitter could see new lows by the time it open on Wednesday. The benefit of low expectations however is that it makes a beat easier. Before the open on Tuesday there are quarterly results from DuPont, Ford, LVMH, Merck, Pfizer, UPS and Jet Blue. Twitter, Gilead Sciences and Yelp announce earnings after the bell. Futures suggest the: S&P 500 will open 12 points higher at 2,079 with the Dow Jones expected to open 97 points higher at 17,537 and the Nasdaq 100 24 points higher at 4,543. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.