Futures climbed Tuesday amid expectations that a solution will be found for Greece to avoid a default and a short-term contagion risk to other euro zone countries could be contained.
Stocks finished higher in thin trading, with the Dow and S&P posting a third straight gain Monday.
Euro zone finance ministers said the Greek government had until July 3 to approve new steps to get the next installment of 110 billion euros. Meanwhile, the market expects a vote of confidencein Greek Prime Minister George Papandreou new cabinet to pass on Tuesday—the first of three hurdles the government must clear to avert the euro zone's first sovereign debt default. The vote is due around 5 p.m. EDT.
On the economic front, U.S. home sales data for May is due at 10 a.m. ET. According to a Reuters poll, analysts expect sales to drop to about 4.8 million, compared with 5.05 million the month before.
The FOMC begins a two-day meeting, with the announcement expected Wednesday afternoon, followed by a new conference from chairman Ben Bernanke. The Fed is expected to cut its growth forecast for 2011, but Bernanke will likely continue to argue the slowdown is temporary.
Research In Motion lost a second marketing executive in the latest bit bad news that has cut the BlackBerry maker's market value in half this year. Meanwhile, Nokia unveiled a new smartphone that uses an old software that the firm had planned to discontinue.
Best Buy jumped after the electronic retailer's board agreed to raise the quarterly dividend by 7 percentand approve a buyback plan for $5 billion in common shares.
On the earnings front, Walgreens reported a higher profit as sales of general merchandise and more profitable generic drugs rose. However, shares tumbled after the drug retailer said it failed to renew an agreement with pharmacy benefits manager Express Scripts .
Barnes & Noble also slipped after the bookstore chain reported a wider-than-expected loss as sales were under pressure from the going-out-of-business sales of bankrupt rival Borders.
Adobe Systems is slated to release its quarterly report after the bell.
Meanwhile, BP advanced after one of the oil company's contractors WeatherfordInternational agreed to pay $75 million to settle all potential claims between the companies from the Gulf of Mexico oil spill.