Coca-Cola, Goldman Sachs, Johnson & Johnson, Intel, Yahoo and CSX are among major companies slated to post earnings on Tuesday . (Read More: 4 Earnings That Will Probably Disappoint )

Market focus this week will be on Federal Reserve Chairman Ben Bernanke as he gives his semi-annual report before the Senate Banking Committee on Tuesday and House Committee on Wednesday. Investors will listen for any hints of further stimulus measures .

"If the market doesn’t get the clear signal it wants tomorrow from Bernanke in reference to QE3, it will stamp its feet (like a toddler that doesn’t get his way) and we could see Friday’s gains evaporate," wrote Elliot Spar, senior vice president at Stifel Nicolaus, in his daily note.

Stocks opened lower after Chinese Premier Wen Jiabao said China's economy has not yet entered a recovery and "economic difficulties may continue for some time," but promised he would use further measures to help struggling sectors. His comments follow China's GDP report that showed economic growth fell to a three-year low in the second quarter.