U.S. futures edge lower with fiscal cliff, data in focus; Dow down 0.2%

Investing.com - U.S. stock futures pointed to a lower open on Tuesday, as initial optimism over news of a deal on financial aid for Greece gave way to concerns over the looming “fiscal cliff” in the U.S.

Market players also looked ahead to key data on U.S. durable goods orders for October, as well as reports on home prices and consumer confidence.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a loss of 0.2%, S&P 500 futures signaled a 0.15% decline, while the Nasdaq 100 futures indicated a 0.1% drop.

Euro zone finance ministers, the European Central Bank and the International Monetary Fund reached an agreement in a meeting that wrapped up early Tuesday in Brussels to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.

Other measures included an extension of loan maturities, a cut in the interest rates that Greece is paying on the loans from its international partners, as well as a debt buyback.

Athens was also cleared to receive a much-needed EUR34.4 billion loan installment in December, easing fears over a messy near-term default and potential exit from the euro zone.

Eurogroup Chairman Jean-Claude Juncker said euro zone ministers would formally approve the release of the aid payment on December 13.

However, market players remained cautious as the latest agreement does not offer a fundamental resolution to the euro zone's debt crisis.

Meanwhile, markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.

Republicans in the U.S. Congress on Monday called on President Barack Obama to detail long-term spending cuts to help solve the country's fiscal crisis, while holding firm against the income tax rate increases for the wealthy that Democrats seek.

There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.

Later in the day, the U.S. was to release official data on durable goods orders, as well as industry data on house price inflation.

In addition, the Conference Board was to publish data on U.S. consumer confidence, while Federal Reserve Chairman Ben Bernanke was to deliver brief remarks at the National College Fed Challenge Finals, in Washington D.C.

Shares in discount retailer Dollar General rallied 3.6% ahead of the open after Standard & Poor’s said the largest U.S. dollar-store chain will replace Cooper Industries in the S&P 500 Index.

Cooper Industries is being purchased by Eaton Corporation in a deal that may be completed around that time, S&P said.

In earnings news, Green Mountain Coffee Roasters was due to release quarterly results after Tuesday’s closing bell.

Across the Atlantic, European stock markets were higher, as appetite for riskier assets improved after euro zone finance ministers reached a deal to release the next tranche of bailout funds to Greece.

The EURO STOXX 50 rose 0.3%, France’s CAC 40 added 0.25%, Germany's DAX advanced 0.4%, while Britain's FTSE 100 tacked on 0.35%.

During the Asian trading session, Hong Kong's Hang Seng Index dipped 0.1%, while Japan’s Nikkei 225 Index added 0.4%.