NEW YORK (TheStreet) -- U.S. stock futures traded higher Tuesday as investors cling to hope that an 11th-hour deal will be made between Greece and its creditors. The debt-laden country has a $1.71 billion payment due to the International Monetary Fund on Tuesday and reports are that Greece won't make the payment.
S&P 500 futures rose 0.77%, Dow Jones Industrial Average futures added 0.62% and Nasdaq futures increased 0.62%, following a major selloff on Monday. The Dow lost 350 points on Monday and entered negative territory for the year.
While no deal is in place for Greece and a default looks likely, Greek Finance Minister Yanis Varoufakis told Reuters he is hopeful a last-minute agreement will be made. Greece announced over the weekend that it will hold a referendum on July 5 to allow citizens to decide if the country should remain in the 19-country eurozone. A "Grexit" would mean a return to Greece's old drachma currency.
Investors in Europe weren't feeling as hopeful, with London's FTSE down 0.4%, Frankfurt's DAX up 0.02% and Paris's CAC to the downside by 0.10%. The euro lost 0.36% against the dollar.
"Unless there is a last ditch agreement [Tuesday] between Athens and the creditors to extend the bailout program by five-months (with partial debt relief or a commitment hereto), [Monday's] recovery in euro assets is likely to prove fleeting," wrote Societe Generale's Kenneth Broux in a note. "The probability of a deal happening is low and means Greece will fall in arrears with the IMF today if it does not honor the repayment."
Investors in the U.S. braced for a busy economic calendar on Tuesday with the S&P/Case-Shiller Home Price Index to be released at 9 a.m. EDT, along with the Chicago Purchasing Manager Index at 9:45 a.m. and consumer confidence data at 10 a.m.
Apple's (AAPL) streaming music service begins on Tuesday for $9.99 ar month, following a 90-day free trial. The service will include music from Taylor Swift, who removed her songs from competitor streaming service Spotify. Apple's service is also set to compete with Pandora (P).
Shares of Apollo Education Group (APOL) slumped 11.5% in premarket trading after the company reported third-quarter earnings per share of 53 cents, on an adjusted basis, down from 78 cents a year earlier.
Celgene (CELG) shares weretrading lower after saying it will spend $1 billion over the next decade in a partnership with Juno Therapeutics (JUNO) to develop treatments for various immune system diseases.
ConAgra Foods (CAG) reported adjusted quarterly earnings per share of 59 cents, in line with estimates. Shares edged up more than 3% after it announced that it expects to exit its private label operations.