Amgen, Aflac, Symantec and Take Two Interactive are among notable companies scheduled to report after the closing bell.
But trading volume is likely to be muted again as investors look ahead to the statement from Federal Reserve's policy-setting meeting. In addition, the first reading of second-quarter gross domestic product will be due Wednesday. And the closely-watched July employment report will be reported Friday.
The Fed is expected to maintain its accommodative monetary policy, but investors will be looking for hints on when the central bank might start scaling back on its monthly bond-buying program. In addition, markets will also be eager for hints for who may replace Ben Bernanke next year as Fed Chairman.
(Read more: Fed expectations: will they stay or will they slow?)
"It's a pivotal time for Fed policy, and it would be advantageous to have someone at the helm who had already gone through the analytical process of getting comfortable with the last five years of policy, rather than coming in with a completely clean slate and trying to potentially reinvent it," said Ian Lyngen, senior Treasury strategist at CRT Capital.
(Read more: Fed intrigue, not policy, has market attention)
On the economic front, single-family home prices rose 1 percent in May on a seasonally adjusted basis, according to the S&P/Case-Shiller composite index of 20 metropolitan areas. Economists polled by Reuters expected a gain of 1.5 percent. Meanwhile, consumer confidence slipped slightly to a reading of 80.3 in July from an upwardly revised 82.1 in June, according to the Conference Board. Economists surveyed by Reuters expected a reading of 81.1.
Mosaic plunged nearly 20 percent after Russia's Uralkali pulled out of a venture with its partner in Belarus, a move it expects will cause global prices to plunge by 25 percent. Uralkali and Belarus potash maker Belaruskali were partners for eight years in BPC, which accounts for 43 percent of the global potash export market. Shares of Potash and Agrium also tumbled sharply.
Community Health Systems announced it would acquire smaller Health Management Associates in a $3.9 billion deal. Shares of both company finished in the red following the news.
JPMorgan closed lower after the banking giant said it would pay a total of $410 million to settle allegations of energy market manipulation in California and the Midwest.
The Japanese yen weakened against the dollar to above the 98-level in early trade, leading the export-heavy Nikkei index to rally 1.5 percent. Meanwhile, South Korea's Kospi added 0.9 percent and the Shanghai Composite traded within sight of the 2,000 mark.
European shares rose after an upbeat German consumer confidence report. The Gfk research institute said its forward-looking consumer index hit its highest level since September 2007, thanks to an improving labor market and expectations for more robust economic growth.