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Futures Hold Gains After Case-Shiller Report

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.

In addition, Eli Lilly posted earnings that plunged 27 percent as its schizophrenia treatment lost patent protection and ran into competition from generic rivals.

RadioShack plunged over 30 percent a day after the electronics retailer warned of a decline in fourth-quarter profit.

Meanwhile, United Parcel Services advanced after the package delivery company reported earnings that beat Wall Street expectations.

And Mattel rallied after the toymaker reported better-than-expected earnings.

In politics, Republican voters in Florida will go to the polls later in the day in the presidential primary election that could determine the direction of the race. The race looks set to take place between former Massachusetts governor Mitt Romney, who holds a firm lead in opinion polls, and former House speaker Newt Gingrich.

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

Coming Up This Week:

TUESDAY: S&P Case-Shiller home price index, Chicago PMI, consumer confidence, Florida GOP Primary vote; Earnings from Amazon.com, Broadcom
WEDNESDAY: Weekly mortgage applications, Challenger job-cut report, ADP employment report, Fed's Plosser speaks, ISM mfg index, construction spending, oil inventories, auto sales; Earnings from Aetna, Marathon Oil, Qualcomm, Electronic Arts
THURSDAY: Jobless claims, productivity and costs, Fed's Fisher speaks, chain-store sales; Earnings from AstraZeneca, Deutsche Bank, Merck, Royal Dutch Shell, Sony, Unilever, beazer Homes
FRIDAY: Employment situation, factory orders, ISM non-mfg index; Earnings from Clorox

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