* Futures higher: Dow up 1 pt, S&P up 3.73 pts, Nasdaq up 21.5 pts
By Sweta Singh
July 10 (Reuters) - U.S. stock index futures were slightly higher on Monday as the latest jobs report increased optimism that a tightening labor market would keep the Federal Reserve on course for a third rate hike this year despite benign inflation.
* Fed Reserve Chair Janet Yellen's semi-annual testimony is the key highlight of this week for investors looking for cues on further rate hikes. She will testify on Wednesday and Thursday.
* The Federal Reserve raised its benchmark overnight interest rate in June for the second time this year.
* Nonfarm payrolls increased by 222,000 jobs last month - the second biggest increase this year - and topped economists' expectations for a 179,000 gain.
* The dollar climbed to a two-month high against the Japanese yen on Monday as a robust jobs data propped up U.S. Treasury yields.
* Wall Street stocks closed on a high note on Friday, with the S&P 500 posting its best gain in six sessions on the heels of the payrolls report.
* Investors will be looking at second-quarter earnings reports on Friday from big U.S. banks including JPMorgan Chase , Wells Fargo and Citigroup.
* In a significant victory for the banking industry, the Fed late last month approved capital plans from the 34 largest U.S. banks to use extra capital for stock buybacks, dividends and other purposes.
Futures snapshot at 6:54 a.m. ET (10:54 GMT):
* Dow e-minis were up 1 points, or 0 percent, with 13,650 contracts changing hands.
* S&P 500 e-minis were up 3.75 points, or 0.15 percent, with 87,504 contracts traded.
* Nasdaq 100 e-minis were up 21.5 points, or 0.38 percent, on volume of 18,727 contracts.
Reporting by Sweta Singh in Bengaluru; Editing by Arun Koyyur