Futures edged lower Tuesday after the S&P/Case-Shiller home price index showed a broad-based decline in the fourth quarter.
Investors have been hoping for a Santa Claus rally as the S&P remains slightly in positive territory for 2011.
On the economic front, home prices declined in most major citiesfor the second straight month in October according to the Standard & Poor's/Case-Shiller index.
Investors will also be focusing on retail sales, as a day off on Monday sent many Americans out, with shops relying on bargains to lure shoppers.
Sears Holdingsannounced it would close down 100 to 120 Kmart and Sears stores due to a combination of lower sales, continued margin pressure and increased expenses.
MetLife gained after the life insurer said it plans to sell almost $7.5 billion of its banking unit depositsto GE Capital Financial as the firm looks to exit the banking business.
Trading volume is expected to remain light throughout the shortened holiday week.
Also on the economic front, the Conference Board's consumer confidence index for December will be released at 10am ET, with analysts expecting it to climb to 58 from November's 56.
—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC—
On Tap This Week:
TUESDAY: S&P Case-Shiller home price index, consumer confidence, Richmond Fed business activity survey, Dallas Fed mfg survey
WEDNESDAY: Weekly mortgage applications
THURSDAY: Jobless claims, Chicago PMI, oil inventories, Fed balance sheet/money supply
FRIDAY: Farm prices
More From CNBC.com: