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Futures down: Dow 0.19%, S&P 0.17%, Nasdaq 0.12%

April 16 (Reuters) - U.S. stock index futures edged

lower on Tuesday, weighed by elevated Treasury yields as

investors remained wary of the conflict in the Middle East,

turning the lens on company earnings to gauge the strength of

the economy.

Wall Street closed sharply lower in the previous session,

pressured by a jump in Treasury yields and concerns about the

rising geopolitical tensions between Iran and Israel.

The yield on the 10-year government bond last

stood at 4.6468%, a day after data showed U.S. retail sales

increased more than expected in March amid a surge in receipts

at online retailers. This was further evidence that the economy

had ended the first quarter on solid ground.

Meanwhile, Israelis awaited word on how Prime Minister

Benjamin Netanyahu would respond to Iran's first-ever direct

attack, as international pressure for restraint grew over fears

the conflict could escalate.

Several policymakers including Federal Reserve Chair Jerome

Powell are slated to speak later in the day, and investors will

be watching for clues on where the central bank stands on policy

easing.

San Francisco Fed President Mary Daly said on Monday that

with the economy and labor market strong and inflation still

above the Fed's 2% target, there was "no urgency" to cut U.S.

interest rates.

Traders see an about 48% chance of the Fed kicking off its

easing cycle in July, according to the CME FedWatch tool.

On the earnings front, financial firms will be in the

spotlight, with Bank of America ( BAC ), Morgan Stanley ( MS )

and BNY Mellon scheduled to report their quarterly

numbers before the opening bell.

Drugmaker Johnson & Johnson is also due to report

before markets open.

U.S. equities have sold off recently as investors sharply

readjusted their expectations of how much the Fed would cut

rates this year, with bets now showing only 43 basis points of

expected easing, according to LSEG data. This is down from about

150 bps seen at the start of the year.

At 5:38 a.m. ET, Dow e-minis were down 72 points,

or 0.19%, S&P 500 e-minis were down 8.75 points, or

0.17%, and Nasdaq 100 e-minis were down 20.75 points, or

0.12%.

Tesla shed 2.1% in premarket trading after falling

over 5% in the last session, when an internal memo seen by

Reuters showed the EV marker was laying off more than 10% of its

global workforce.