Market sentiment improved after Euro zone finance ministers and the International Monetary Fund clinched agreement late on Monday on reducing Greece's debt in a breakthrough to release urgently needed loans to keep the near-bankrupt economy afloat.

The Commerce Department releases October durable goods orders at 8.30 a.m. ET. Economists expect a 0.6 percent fall in orders in October, against a 9.8 percent rise in September.

ConocoPhillips' (COP.N) partners in Kazakhstan's Kashagan field have 60 days to exercise pre-emption rights to prevent India's ONGC Videsh from buying an 8.4 percent stake in the project held by the U.S. company, the Indian firm's managing director said.

ICSC/Goldman Sachs release chain store sales for the week ended November 24 at 7.45 a.m. ET. In the previous week, sales fell 0.3 percent.

Redbook releases its Retail Sales Index of department and chain store sales for November at 8.55 a.m. ET. In the prior period, sales were unchanged.

Standard & Poor's releases its S&P Case/Shiller Home Price Index for September at 9 a.m. ET. Economists expect an adjusted 20 city index to rise 0.4 percent, versus a 0.5 percent increase in the previous month.

Europe is preparing to follow the United States in delaying the introduction of stricter rules on bank capital, while it lobbies for a rethink of the U.S. stance, EU sources said.

However, the head of the Basel Committee at the Bank of International Settlements told Reuters on Tuesday that the introduction of stricter capital rules for banks will go ahead as planned on January 1.

Federal Reserve Bank of Chicago releases its Chicago Fed Midwest Manufacturing Index for October at 8.30 a.m. ET. The index read 93.4 in the prior month.

Conference Board releases November consumer confidence at 10 a.m. ET. Economists expect a reading of 73.0, compared with 72.2 in October.

The Federal Housing Finance Agency issues its Home Price Index for September at 10 a.m. ET. In the prior month, the index rose 0.7 percent.

European stocks .FTEU3 rose 0.5 percent on Tuesday, recovering after weakness in the previous session.

U.S. stocks slipped on Monday after posting their best week in over five months as investors reacted to a lack of visible progress in budget deficit discussions in Washington.

The Dow Jones industrial average .DJI fell 77.92 points, or 0.60 percent, to 12,931.76. The S&P 500 Index .SPX dropped 6.99 points, or 0.50 percent, to 1,402.16. The Nasdaq Composite Index .IXIC shed less than a point at 2,966.75.

(Reporting by Atul Prakash; editing by Patrick Graham)

• A Permanent Economic Emergency