Futures for the Dow Jones industrial average, the S&P 500 and the Nasdaq 100 fell 0.2-0.3 percent, pointing to a weaker start on Wall Street on Tuesday.

A federal judge rejected Bank of America Corp's $33 million settlement with the U.S. Securities and Exchange Commission over Merrill Lynch & Co bonuses as a contrivance, and New York's top legal officer prepared to sue senior bank executives.

Kraft Foods , North Americas's biggest food group, plans to hold talks in the coming weeks with British bid target Cadbury that may lead to a new bid offer for the second biggest global candy and chocolate maker.

The U.S. Treasury Department is talking to Citigroup Inc about how to sell the roughly one-third stake the government acquired as part of its bailout of the bank, news agency Bloomberg said, citing people familiar with the matter.

China unveiled data on Tuesday that showed tire exports to the United States actually fell in the first half of 2009, rebutting Washington's accusations that it had breached its WTO agreements by flooding the U.S. market.

Both countries moved to allay concerns of a trade war but the row over Washington's decision to impose added duties on Chinese-made tires showed no signs of abating as Beijing said the U.S. move was sending the wrong message to the rest of the world.

President Barack Obama warned financial firms on Monday to heed the lessons of Lehman Brothers' collapse a year ago and get behind a regulatory overhaul he wants Congress to pass this year.

At 1145 GMT (7:45 a.m. EDT) ICSC/Goldman Sachs is scheduled to release chain store sales for the week ended September 12 versus the prior week. In the previous week, sales rose 0.6 percent.

Labor Dept. releases the August Producer Price Index (PPI) at 1230 GMT (8:30 a.m. EDT). Economists in a Reuters survey forecast a 0.8 percent increase compared with a 0.9 percent decrease in July. Excluding volatile food and energy items, PPI is seen up 0.1 percent compared with a 0.1 percent drop the prior month.

At 1230 GMT (8:30 a.m. EDT) the U.S. Commerce Department releases the August retail sales. Economists in a Reuters survey expect a 2.0 percent rise in sales compared with a 0.1 percent fall in July. Excluding automobiles, sales are seen up 0.4 percent compared with a 0.6 percent decrease the prior month.

New York Federal Reserve releases its Empire State Manufacturing Survey for September at 1230 GMT (8:30 a.m. EDT). Economists in a Reuters survey expect a reading of 14.00 compared with 12.08 in August.

At 1255 GMT (8:55 a.m. EDT) Redbook releases its Retail Sales Index of department and chain store sales for two weeks of September versus two weeks of August.

Investor's Business Daily and TechnoMetrica Market Intelligence due to release at 1400 GMT the IBD consumer confidence index for September. The index read 50.3 in August.

At 1400 GMT (10 a.m. EDT), U.S. Commerce Dept. issues Business Inventories for July. Economists in a Reuters survey expect inventories fell 0.9 percent versus a 1.1 percent fall in June.

Federal Reserve Chairman Ben Bernanke speaks at 1400 GMT (10 a.m. EDT) on Reflections on a Year of Crisis before the Brookings Institution A Year of Turmoil Conference.

ABC News releases its consumer comfort index for the week ended September 13 versus the prior week. In the previous week, the index read -48.

Shares in Lubrizol Corp rose in extended trade on Monday after the specialty chemical company raised its full year earnings per diluted share view to a range of $5.87 to $6.17 including items.

Synovus Financial Corp said it will offer up to $350 million of common stock as part of a $500 million capital plan, sending its shares down 6 percent.

(Reporting by Atul Prakash; Editing by Greg Mahlich)