Futures Waver Around Flat Line; Nasdaq Gains

Futures pared most of their earlier losses Tuesday, but investors continued to remain on edge over the ongoing European debt concerns and a handful of tepid economic news.

Stocks rebounded to finish near session highs in a volatile session Monday, following an FT report that China was in talks with Italy to purchase its bonds.

Greek Prime Minister George Papandreou is scheduled to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy on Wednesday to focus on developments on Greece's economy.

An auction of Italian 5-year debt saw yields rise, demonstrating there is still concern about Italian sovereign debt.

The euro fellas the news of Chinese buying failed to allay concerns that the euro zone's crisis is still deepening.

The Italian government meets later this week to finalize new budget measures to bring the deficit down, but debt at 120 percent to GDP remains a major concern for the country.

On the economic front, import prices fell 0.4 percent in August due to lower fuel, food and industrial material costs, according to the Labor Department. Economists had expected import prices to fall 0.8 percent, according to a Reuters survey.

In corporate news, Best Buy gained even after the electronics retailer reported a lower-than-expected profit on weak demand for televisions and video game products.

Nintendo's attempt to rescue its failed 3DS handheld games gadget with a raft of new games content fell short of expectations and left investors pessimistic about the outlook for the company.

Toyota will invest $337 million in Indonesia to expand in the fast-growing car market there.

Cisco holds an analyst day on Tuesday amid increasing speculation over if, or when Mark Chambers will cede his job as CEO.

And has extended its offer for takeover offer for British software company Autonomy to Oct.3 after gaining acceptances from only 41.6 percent of shareholders at the first closing date.

On the economic front, the small businesses optimism index fell 1.8 points to 88.1 in August, according to the National Federation of Independent Business (NFIB), due to weaker expectations for retail sales gains and dismal business outlook in the next six months.

—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC

Coming Up This Week:

TUESDAY: Import & export prices, 10-yr note auction, Samsung/MSFT tablet unveiled
WEDNESDAY: Weekly mortgage apps, PPI, retail sales, business inventories, oil inventories, 30-yr bond auction, Microsoft analyst meeting
THURSDAY: CPI, Empire state mfg survey, jobless claims, current account, industrial production, Philadelphia Fed survey, credit card default rates reported; Earnings from Pier 1, Research In Motion
FRIDAY: Treasury international capital, consumer sentiment, quadruple witching

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