On the economic front, retail sales rose 0.5 percent in December as consumers largely overlooked the threat of higher taxes, according to the Commerce Department. Economists expected sales to edge up 0.2 percent, according to a Reuters poll. Combined, sales climbed 5.2 percent in 2012.
Meanwhile, producer prices declined 0.2 percent in December, slipping for the third-straight month, according to the Labor Department. Economists polled by Reuters had expected a drop of 0.1 percent.
And manufacturing in New York state fell to -7.8, contracting for a sixth-consecutive month in January, according to the New York Federal Reserve. Economists had expected a flat reading, according to a survey by Reuters.
At 10 a.m., the Commerce Department will release November business inventories.
"The impact of the economic data on the financial markets might be rather short lived as the political wrangling over the raising of the debt ceiling is starting to heat up in Washington spreading increasingly uncertainty which could limit any advances to the upside," said Siddiqi.
Dell extended gains a day after sources said the computer hardware company is in talks with private equity firms on a potential buyout.
Facebook dipped ahead of its news event at its headquarters.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
TUESDAY: Business inventories, Fed's Plosser speaks, credit card default rates reported, Facebook event
WEDNESDAY: Weekly mortgage applications, CPI, Treasury int'l capital, industrial production, housing market index, Fed's Kocherlakota speaks, oil inventories, Beige Book, Fed's Fisher speaks, OPEC's monthly market report; Earnings from Goldman Sachs, JPMorgan, Bank of NY Mellon, Ebay
THURSDAY: Housing starts, jobless claims, Philadelphia Fed survey, natural gas inventories, Fed's Lockhart speaks, Fed balance sheet, money supply; Earnings from Bank of America, Citigroup, UnitedHealth, BB&T, BlackRock, American Express, Intel, Capital One
FRIDAY: General Electric, Schlumberger, Morgan Stanley
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