US stock index futures erased their gains to turn negative Tuesday after Greek party leaders failed to agree on a coalition government, trumping earlier euphoria over a batch of better-than-expected economic news.
Greek politicians failed to form a coalition governmentduring their final talks, nine days after an inconclusive election. Conservative party leader Panos Kammenos emerged from the presidential mansion where the talks had been held and said that no deal had been reached.
The euro fell below $1.28following the announcement, while European stocks also turned lower, falling to new 2012 lows.
Futures had previously been higher following news that German GDP grew 0.5 percent in the first quarter in seasonally adjusted terms — five times as fast as expected — as exports helped the economy bounce back from a contraction of 0.2 percent in the fourth quarter.
Consumer prices were flat in April, according to the Labor Department, in line with economists' expectations. The index rose 0.3 percent in March.
Empire State manufacturing index jumped to 17.09 in May after a dismal 6.56 reading in April, according to the New York Federal Reserve.
Retail sales edged up 0.1 percent in April, according to the Commerce Department, as the boost from an unusually warm winter faded. Economists had expected retail sales to rise 0.2 percent.