Futures Waver as Debt Talks Drag; Ford Gains

Futures wavered Tuesday after the S&P/Case-Shiller home price index showed some improvement in May along with strong earnings from Ford, but gains were limited as investors continued to monitor the ongoing debt talks in Washington.

U.S. single-family home prices were unchanged in May, the first time in nearly a year they have not fallen on a monthly basis, though prices were still down compared to a year earlier, a closely watched survey said Tuesday.

The S&P/Case Shiller home price index of home prices in 20 metropolitan areas held steady on a seasonally adjusted basis and in line with economists' expectations, according to a Reuters poll.

Stocks tumbled in the previous sesssion as lawmakers remained deadlocked over a deal to raise the government's debt ceiling to avoid default ahead of the Aug. 2 deadline.

President Obama urged a compromise to raise the debt limitand warned that the American people could not become “collateral damage” to Washington’s politics.

Obama, in a televised address aimed at rallying public support for a package proposed by Democrats, warned that failure to increase the U.S. borrowing limit would severely hurt the nation.

The debt crisis will dominate headlines on Tuesday, when only a handful of economic reports could provide further direction for financial markets.

On the earnings front, Ford Motor gained after the automaker topped earnings estimates, thanks to higher prices and improved sales in North America.

However, 3M slipped after the Dow component eported higher earnings, but said Japan's March earthquake reduced sales and profit margins. Meanwhile, UPS also edged lower after the package delivery company only narrowly beat profit estimates.

And BP reported earnings below expectations. CEO Bob Dudley told CNBC that this year is one in which BP will consolidate and get its strength back.

Amazon.com and Electronic Arts are scheduled to report earnings after the closing bell.

New home sales for June are out at 10 am.

Also at 10 am, the Conference Board releases July consumer confidence. Economists polled by Reuters expect a reading of 56.0 compared with 58.5 in June.

At least eleven companies are scheduled to start trading this week, marking the biggest IPO week since November 2007. Among notable names, Dunkin' Brands plans to sell 22.3 million shares at a price range of $16 to $18 and will trade under the ticker "DNKN."

Meanwhile, U.S. specialty finance company Orchid Island Capital has postponed its IPO due to market conditions.

On Tap This Week:

TUESDAY: Consumer confidence, new home sales, Richmond Fed survey, 2-yr note auction; Earnings from Amazon.com, Electronic Arts
WEDNESDAY: Weekly mortgage apps, durable goods orders, oil inventories, 5-yr note auction, Beige Book; Earnings from Boeing, ConocoPhillips, Aetna, AutoNation, Delta, Dow Chemical, Aflac, Symantec, Visa, WholeFoods
THURSDAY: Weekly jobless claims, pending home sales, Kansas City Fed survey, Richmond Fed Lacker speaks, 7-yr note auction, San Francisco Fed Williams speaks, money supply; Earnings from AstraZeneca, Credit Suisse, DuPont, ExxonMobil, Royal Dutch Shell, Sanofi, Bristol-Myers Squibb, DR Horton, Kellogg, Motorola Solutions, Sprint, Time Warner Cable, Chesapeake Energy, MetLife, Motorola Mobility, Starbucks
FRIDAY: Employment cost index, GDP, Chicago PMI, consumer sentiment, farm prices; Earnings from Chevron, Merck

More on CNBC.com