That said, The Earnings Scout CEO Nick Raich pointed out Tuesday that the overall earnings growth this season is below that of the previous one.
"What's more, based on current expectations and revision trends, growth is likely to decelerate more over the next two quarters," Raich said in a note to clients. "Therefore, we are maintaining our recommendation to underweight global stocks by 5% of your normal strategic allocation."
Earnings season continues Tuesday with tech giant Apple set to report after the close. Athletic apparel firm Under Armour reported better-than-expectedquarterly results before the open, but the company's stock fell 8 percent on weaker-than-expected guidance.
Investors also turned their eyes to a slew of economic data on Tuesday. The IHS Markit manufacturing PMI hit its highest level in four months in July, while U.S. construction spending declined 1.3 percent in June.
U.S. personal income for June remained unchanged, below an expected increase of 0.3 percent.
Later this week, the U.S. Labor Department will release its monthly employment data. The report is often considered the most important economic report of the month.
"Figures on employment and capital spending over the coming month will give us a better sense of what second-quarter profits really mean - beyond whether they beat Wall Street estimates, a dubious distinction at best," Steve Blitz, chief U.S. economist at TS Lombard, said in a note.
Investors will examine every piece of economic data this week for clues about the Federal Reserve's next monetary policy move. Market participants aren't expecting the Fed to raise rates again this year until December, but the central bank has hinted it could start rolling off its massive $4.5 trillion balance sheet in September.
U.S. Treasury yields traded lower Tuesday, with the 10-year yield at 2.257 percent and the two-year yield near 1.347 percent.
The dollar skidded to a six-week low versus the yen, its outlook clouded by U.S. political turmoil and doubts over whether there will be another Federal Reserve rate hike this year.
The dollar slipped to a low of 110.005 yen at one point, its lowest level since June 15. The greenback was last trading at 110.26 yen, flat on the day.
—Reuters contributed to this report.