President Barack Obama is scheduled to host a second summit with business leaders at the White House to discuss the country's fiscal problems. Chief executives of Goldman Sachs, Deloitte nd Caterpillar, among others are expected to attend.
Democrat and Republican lawmakers are trying to reach a deal to avoid the convergence of tax increases and spending cuts at the end of the year.
Wall Street lost ground in the last hour of trade on Tuesday after Senate majority leader Harry Reid said there had been little progress in dealing with the issue.
In company news, retailer Costco said it would pay a special dividend of $7 per share after reporting better-than-expected sales. Other companies including Las Vegas Sands, Ethan Allen nd CNH also announced special dividends this week alone, ahead of possible tax increase on dividends next year. (Read More: Do Special Dividends Boost Stocks?)
Microsoft said it sold 40 million Windows 8 licenses in the month since the launch, one of the new co-heads of the unit told Reuters.
European shares declined as optimism over the Greek debt deal was trumped by uncertainty over the exact terms of the agreement. Euro zone governments could be forced to accept losses on their rescue loans to Greece, according to documents seen by the Financial Times.
Meanwhile, the European Commission gave the green light for Spain to overhaul its nationalized banks and opened the door for nearly 40 billion euros in euro zone aid to be disbursed, offering hope for an end to Spain's banking crisis.
On the economic front, new home sales report is due at 10 am ET. Economists expect a reading of 390,000 for October, according to a Reuters poll.
Weekly mortgage applications declined last week, while demand for mortgage purchases gained for a fourth-consecutive week, according to the Mortgage Bankers Association.
The government is scheduled to auction $35 billion in 5-year notes with the results available shortly after 1pm ET.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
WEDNESDAY: New home sales, oil inventories, 5-yr note auction, Fed's Beige Book, Microsoft shareholders mtg; Earnings from Aeropostale, La-Z-Boy, TiVo
THURSDAY: GDP, jobless claims, corporate profits, pending home sales, 7-yr note auction, chain-store sales; Earnings from Kroger, Tiffany, Barnes & Noble
FRIDAY: Personal income & outlays, Chicago PMI, farm prices
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