US Stocks Seen Higher Ahead of Earnings Wave

U.S. stock index futures pointed to a slightly higher open on Monday but the mixed bag of earnings thus far threatened to pressure the aggressive July rally.

Dow component McDonald's registered quarterly earnings that missed both for bottom-line profit and top-line revenue.

The fast food chain saw earnings of $1.38 per share against expectations of $1.40 and revenue of $7.08 billion that fell short of estimates for $7.1 billion. Shares dropped about 2.4 percent in initial reaction to the report, sending stock futures well off their morning highs.

Netflix and Texas Instruments are scheduled post numbers after the closing bell.

(Read More: McDonald's finance guide 'insulting' to low-wage workers)

Around 20 percent of S&P 500 companies have already reported, with 65 percent beating earnings estimates and 51 percent beating on revenues, according to Reuters. If all remaining companies post earnings in line with forecasts, earnings will be up 2.9 percent on the year before.

This week will be the busiest in second-quarter earnings season, with about a third of S&P 500 companies due to report, plus eight Dow-listed companies.

European and Asian shares ticked higher, boosted by upbeat earnings and an electoral victory for the Japanese Prime Minister.

In Europe, shares in Julius Baer, UBS and Dutch engineering firm Philips boosted indexes after reporting better-than-expected second quarter results.

(Read More: UBS jumps on deal to settle US mortgage debt lawsuit)

Asian shares eked out modest gains after Japanese Prime Minister Shinzo Abe's coalition won a landslide victory in weekend elections, signaling a green light for future monetary stimulus.

This week will be quieter in terms of economic news. On Monday, existing home sales are out at 10:00 a.m. ET, plus the Chicago Federal Reserve index at 8:30 a.m.

—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

On Tap This Week:

MONDAY: Existing home sales; Earnings from Netflix, Texas Instruments
TUESDAY: FHFA home price index, Richmond Fed mfg index, 2-yr note auction, Silicon Valley innovation summit, new Verizon Droid unveiled; Earnings from Altria, DuPont, Travelers, United Tech, UPS, Apple, AT&T, Broadcom, Discover Financial, Electronic Arts
WEDNESDAY: MBA mortgage applications, PMI mfg index, new home sales, oil inventories, 5-yr note auction, Dell shareholder mtg, Google breakfast; Earnings from Boeing, Caterpillar, Eli Lilly, Ford, GlaxoSmithKline, PepsiCo, Facebook, Qualcomm, Visa, Akamai, Baidu
THURSDAY: Durable goods orders, jobless claims, natural gas inventories, Kansas City Fed mfg index, 7-yr note auction, Fed balance sheet/money supply, weekly rail numbers, USDA food prices outlook; Earnings from Bristol-Myers, GM, 3M, Colcate-Palmolive, Credit Suisse, Sirius XM,, Gilead Sciences, Starbucks, Zynga
FRIDAY: Consumer sentiment, AT&T Next debuts; Earnings from Tyco

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