US STOCKS-Greek bailout optimism lifts futures

* Euro climbs against dollar, oil rises

* Futures up: Dow 100 pts, S&P 10.9 pts, Nasdaq 24.5 pts

* For up-to-the-minute market news see [STXNEWS/US] (Adds quote, updates prices)

By Chuck Mikolajczak

NEW YORK, May 31 (Reuters) - U.S. stock index futures advanced on Tuesday as the euro rose against the dollar and commodity prices jumped on optimism that new aid for Greece from the European Union was on the horizon.

Europe stepped up efforts to draft a second bailout package for Greece, with private sector participation still an option to help relieve the country of its massive debt burden. For details, see [ID:nL3E7GV07I]

Rising expectations of a second aid package for Greece sent U.S. crude futures up 1.5 percent to $102.13 a barrel. Exxon Mobil Corp added 1 percent to $83.49, and Chevron Corp gained 0.6 percent to $103.85 in light premarket trade.

The firming of the euro helped boost metals prices, with copper rising to a four-week high. Mining company Freeport-McMoRan Copper & Gold Inc advanced 1.5 percent to $52.50.

"The news out of Europe is propelling the market higher in pretrading, following the rest of the global markets. News regarding a Greece bailout is basically fueling the optimism," said Peter Cardillo, chief market economist at Avalon Partners in New York.

"It is causing the dollar to go back down, strengthening the euro, so that is inviting risk back into the marketplace."

S&P 500 futures rose 10.9 points and were well above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures jumped 100 points, and Nasdaq 100 futures climbed 24.5 points.

On the economic front, Standard & Poor's releases its S&P/Case-Shiller Home Price Index for March at 9 a.m. (1300 GMT). Economists expect a fall of 0.2 percent, a repeat of the February decline.

The Federal Reserve Bank of Chicago releases its Chicago Fed Midwest Manufacturing Index for April at 8:30 a.m. (1230 GMT). The index read 85.0 in the prior month.

The Institute of Supply Management Chicago reports its May index of manufacturing activity at 9:45 a.m. [1345 GMT]. Economists forecast a reading of 62.6 in the month, compared with 67.6 in April.

At 10 a.m. (1400 GMT), the Conference Board reports May consumer confidence. Economists expect a reading of 66.5, compared with 65.4 in April.

U.S. chemicals maker Ashland Inc said it will buy privately held International Specialty Products for about $3.2 billion in cash to expand in high-growth markets such as personal care, pharmaceutical and energy. [ID:nL3E7GV1RS]

European shares rose 1 percent on optimism over a possible Greece deal, with banks among the biggest gainers. [.EU]

Asian stocks were mostly higher Tuesday, with the Nikkei lifted 2 percent by an upbeat outlook from Japan's manufacturers and a weaker yen, while regional solar stocks gained after Germany said it would phase out nuclear power by 2022. [ID:nDJRV003D8]

The Dow and S&P 500 suffered their fourth week of losses despite a small gain on Friday. (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)