After last week's beating, markets aren't sure how to act right now. 

After an initial mixed open, stock futures tumbled on Monday. Dow Jones Industrial Average I:DJI futures dropped 101 points Monday as of 3:23 a.m., S&P 500 I:GSPC futures fell 17 points and Nasdaq Composite I:IXIC futures were down 48 points. 

Here's what's on tap in the week ahead.

China Gives Away More Money

Despite years of carrying excessive leverage, China opened up the lending spigots once more on Sunday. 

China's central bank said that starting July 5, it would cut its reserve requirement ratio for commercial banks and other savings institutions by half a percentage point. The move should free up more than $100 billion to be lent to small and medium-sized businesses.

The move may temporarily ease concerns on the country's already slowing growth rate during heightened trade tensions with the U.S.

Tariffs May Start to Take Their Toll on Earnings

Mercedes-Benz maker Daimler may have been the first to issue a profit warning over the U.S.'s brewing trade war with China, but it likely won't be the last. Budget cruise line Carnival Corp. (CCL) - Get Report , auto parts maker Gentherm (THRM) - Get Report , Daimler auto parts supplier Lear (LEA) - Get Report and activewear giant Nike (NKE) - Get Report may follow suit in the coming days.

Carnival, which has been suffering after a scathing Morgan Stanley note earlier this month, will report its earnings Monday. Investors should prepare to be disappointed as the cruise line has 15 percent revenue exposure to Asia and Australia. Gentherm will also update investors Monday in an afternoon strategic announcement that will likely make reference to the tenth of its revenue that was China-related in 2017.

Lear, which gets about 12% of its revenue from China, will hold an investor day Wednesday. Nike, which also gets about 12% of its revenue from China, will report its earnings Thursday after the bell.

Banks Brace for Second Stress Test

Even after all the biggest banks succeeded in passing the first round, a second wave of results from the Fed's annual stress tests on banks may not paint as rosy a picture on Wednesday.

"For banks, DFAST is like a soccer friendly exhibition match," Capital Alpha Partners analyst Ian Katz wrote of the first test in a report. "It's not irrelevant, but the June 28 CCAR results, which determine how much banks can return to shareholders, are the World Cup."

Although all 35 banks passed the exam designed to measure their ability to cope with another financial crisis, their minimum capital levels were lower than expected, according to Deutsche Bank analysts. The results could lead to increased volatility on throughout the week and smaller dividend payouts than previously expected.

Here's what TheStreet's founder Jim Cramer thinks about upcoming bank earnings. Cramer points out he remains bullish Action Alerts PLUS holdings Citigroup (C) - Get Report and Goldman Sachs (GS) - Get Report .

Add to the Economic Calendar

We'll get an in-depth look at the state of the housing market this week as the Census Bureau reports on new home sales on Monday and the Mortgage Banks Association releases mortgage application figures on Wednesday.

On Sunday, EU leaders from Germany, France, Italy, Spain, Austria and Bulgaria will gather in Brussels for an emergency summit on migration that may determine the future of the German Chancellor Angela Merkel's domestic political coalition.

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