(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

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Futures up: Dow 0.09, S&P 500 0.17%, Nasdaq 0.28%

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Caterpillar ( CAT ) profit falls on weak equipment demand, tariff

hit

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Palantir ( PLTR ) jumps as soaring AI demand powers forecast

upgrade

(Updates with prices, analyst comment before the opening bell)

By Nikhil Sharma and Pranav Kashyap

Aug 5 (Reuters) -

Wall Street futures pointed to a higher open on Tuesday,

supported by ongoing optimism over potential Federal Reserve

interest rate cuts, while investors assessed a fresh batch of

corporate earnings.

At 8:28 a.m. ET, S&P 500 E-minis were up 10.75

points, or 0.17%, Nasdaq 100 E-minis were up 65.75

points, or 0.28%, and Dow E-minis were up 39 points, or

0.09%.

Wall Street roared back to life on Monday by posting its

best session since May 27 and recouping losses from a selloff on

Friday, when disappointing July jobs data and sharp downward

revisions to prior months fueled expectations of a Fed rate cut

in September.

According to CME Group's FedWatch tool, the odds for a

September rate cut now stand at 88.2%, compared with 63.3% a

week earlier. Market participants expect at least two

quarter-point cuts by the end of the year.

Earnings from major names on Tuesday include Advanced Micro

Devices ( AMD ), Snap and Rivian.

Pfizer ( PFE ) gained 2.4% in premarket trading after

raising its annual profit forecast, while Palantir Technologies ( PLTR )

rose 7.1% as it boosted its annual revenue forecast.

Online telehealth company Hims and Hers Health ( HIMS )

crashed 10.2% after missing Street estimates for second-quarter

revenue, as subscribers for its compounded versions of

weight-loss drugs declined.

Meanwhile, President Donald Trump's decision to fire the

head of the Bureau of Labor Statistics, responsible for past

jobs data, stoked investors' fears about the integrity of

economic data.

Federal Reserve Governor Adriana Kugler's surprise

resignation on Friday also opened avenues for Trump to shake up

the Fed's leadership earlier than expected. The U.S. president

has repeatedly criticized Fed Chair Jerome Powell for not

cutting interest rates.

Trump on Tuesday said he would soon announce decisions on an

interim replacement for Fed Governor Kugler, as well as his pick

for the next Fed chair.

"You can announce who the next chair is, but I don't think

that Chair Powell will be going anywhere until the end of his

term. I also don't think that whoever is announced as the new

Fed chair will really be impactful," said Art Hogan, chief

market strategist at B Riley Wealth.

The final July reading of S&P Global's Purchasing Managers'

Index is scheduled for release at 9:45 a.m. ET, followed by the

Institute for Supply Management's non-manufacturing PMI at 10:00

a.m. ET.

Investors also weighed the impact of U.S. tariffs on global

economies and corporate earnings. Trump on Monday threatened to

raise import tariffs on goods from India over its Russian oil

purchases, while New Delhi called the attack "unjustified" and

vowed to protect its economic interests.

Markets were also still watching if Trump will decide to

extend a trade truce with China that expires on August 12, or

potentially let tariffs shoot back up to triple-digits.

Caterpillar ( CAT ) slipped 0.2% after reporting a lower

second-quarter profit, hurt by sluggish demand for construction

equipment and higher costs tied to U.S. tariffs.

KFC ( YUM ) parent Yum Brands ( YUM ) slipped 2.3% after

missing

estimates for second-quarter comparable sales and profit.