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Futures Turn Lower as Greece Fails to Reach Deal

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.

Home Depot slumped after the Dow component posted weaker-than-expected sales.

Groupon surged, adding to the previous session's sharp rally, after the daily-deal site reported quarterly results that beat Wall Street's expectations.

Saks fell even after the upscale department-store chain reported higher quarterly profit and said it expects sales at stores open at least a year to rise in the mid-single digits this year.

Retailer JCPenney is scheduled to post earnings after-the-bell tonight.

Avon Products tumbled after Cotywithdrew its $10.7 billion takeover bid for the cosmetics company, saying Avon had missed its deadline to begin discussions.

JPMorgan chief executive Jamie Dimon faces shareholdersafter the bank lost billions of dollars on trading and hedging strategies gone wrong.

Facebook increased its IPO range to raise more than $12 billion, valuing the social-network giant at roughly $104 billion. The firm is scheduled to price its shares on Thursday and begin trading on Friday.

Also on the economic front, the National Association of Home Builders publishes its monthly sentiment index at 10 am ET with sentiment forecast to have edged higher by a point in May to 26. And the Commerce Department issues business inventories for March at the same time. Economists in a Reuters survey said the expected a rise of 0.4 percent versus a 0.6 percent rise in the prior month.

—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

Coming Up This Week:

TUESDAY: Business inventories, housing market index, JPMorgan shareholders mtg, Morgan Stanley shareholders mtg, credit-card default rates reported; Earnings from Home JCPenney
WEDNESDAY: Weekly mortgage apps, housing starts, industrial production, oil inventories, FOMC minutes, AIG shareholders mtg, Southwest Air shareholders mtg; Earnings from Target, Abercrombie & Fitch, Deere, Staples, Limited Brands
THURSDAY: Jobless claims, Philadelphia Fed survey, e-commerce retail sales, leading indicators, Facebook pricing, Home Depot shareholders mtg, Intel shareholders mtg; Earnings from Wal-Mart, Dollar Tree, Ross Stores, Aeropostale, Gap, Marvell Tech
FRIDAY: Facebook begins trading, JCPenney shareholders mtg, G8 summit begins; Earnings from Ann

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