U.S. stock index futures trimmed losses after a report that home prices were up sharply in June, and following weakness in global markets, as the major averages looked set to end the month with the first losing August since 2005.
The Nasdaq is down 6 percent for August so far, with the Dow Jones Industrial Average and the S&P 500 each down more than 4 percent for the month. The Dow had only seven winning sessions since July 28. On Monday, stocks fell across-the-board, with the Dow losing 140.92 points to end at 10,009.73.
European shares were lower across the board as concerns over the economic outlook dented investor sentiment. Asian stocks were mostly lower with the Nikkei 225 slumping 3.6 percent, a new 52-week low.
The S&P/Case-Shiller report on home prices showed home prices were up 1 percent in Junefrom May for the 20-city index; for the year, prices were up 4.2 percent.
At 9:45 am, the Chicago Purchasing Managers index is expected to show a drop to 57.6 for August, compared with last month's 62.3.
The Conference Board's Consumer Confidence Index, out at 10 a.m., is forecast to come in at 51.0 for August, compared to the July reading of 50.4. And at 2 p.m., the Federal Reserve releases the minutes of the most recent Federal Open Market Committee meeting.
Investors will get a snapshot of the banking industry's health at 10 a.m., when Federal Deposit Insurance Corporation Chairman Sheila Bair releases second-quarter industry earnings figures.
In other news, Hurricane Earl is now a Category Four storm with leisure travelers likely to be affected based on Earl's current track. Major cruise lines have already rerouted ships, skipping or changing stops to avoid the storm's path, and the airlines are making plans for possible flight disruptions.
Shares of luxury-retailer Saks soared more than 25 percent in premarket trading after a rumor originating in a British newspaper said a group of private equity firms may bid for the company.
In company news, Dell is reportedly to drop out of the bidding for3Par in the wake of Hewlett-Packard's higher bid. Dell has until Wednesday to match HP's $30 per share offer.
And a study has shown that an experimental drug from Bristol-Myers Squibb and Pfizer is shown to reduce the risk of stroke by more than half compared with aspirin.
In the technology sector, Google is set to roll out a major update to its Gmail service, which will include a new "priority inbox" to separate a user's more important e-mail from other messages.
- Peter Schacknow, Senior Producer, CNBC Breaking News Desk, contributed to this report.
On Tap This Week:
TUESDAY: S&P/Case-Shiller home price index; consumer confidence index, FOMC minutes WEDNESDAY: August auto sales; weekly mortgage applications; Challenger job-cut report; ADP employment report; ISM mfg index; construction spending; weekly oil inventories; Fed's Fisher speaks; Apple event THURSDAY: August chain store sales; weekly jobless claims; productivity and costs; factory orders; pending home sales FRIDAY: August jobs report; Fed's Lockhart speaks; ISM services index
More From CNBC.com: