U.S. stock index futures held their early gains Tuesday as investors seemed unfazed following a report that showed home prices continued to decline. Futures were buoyed by renewed hopes for a deal between Greece and private sector creditors, and after the approval of a new euro zone budget discipline pact.
European stocks reversed sharp two-day declinesfollowing the approval of the budget discipline pact. However, gains were limited by the mounting tension surrounding Portugal's debt woes, with the nation's two-year bond yields hitting a euro-era record above 21 percent.
Meanwhile, Standard & Poor's warned it may downgrade "a number of highly rated" G20 nationsfrom 2015 if their governments fail to enact reforms to curb rising health care spending.
On the economic front, home prices fell 1.3 percent in November 2011, according to S&P/Case-Shiller's 20-city composite index, adding to the 0.7 percent drop seen in October. Economists had expected a decline of 0.5 percent.
Among earnings, oil giant Exxon posted profit that narrowly beat estimates as rising crude oil prices offset declining margins for chemicals, engine lubricants and fuel. Still, shares of the oil giant slipped in pre-market trading.
Pfizer reported sharply lower quarterly earnings, hurt by generic forms of its Lipitor cholesterol drug. In addition, the drugmaker cut its 2012 forecasts.