By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.S. stocks were poised to kick off
September on a high note on Tuesday, with futures moving broadly up
ahead of data expected to show healthy U.S. factory activity in
August.
Futures for the Dow Jones Industrial Average (DJU4) picked up 36
points, or 0.2%, to 17,121, while those for the S&P 500 index
(SPU4) added 3.60 points, or 0.2%, to 2,005. Futures for the Nasdaq
100 index (NDU4) climbed 10.50 points, or 0.3%, to 4,092.50.
On Monday, U.S. stock markets were closed for the Labor Day
holiday. The gains for futures Tuesday came after the S&P ended
with its 32nd record close this year on Friday. It also ended the
month 3.8% higher, representing the benchmark's best August
performance since 2000.
What strategists are saying: The S&P broke above 2,000 for
the first ever last week, and now analysts are already talking
about the next milestone. Morgan Stanley economists and equity
strategists said in a note on Tuesday "a materially higher U.S.
stock market with a S&P peak near 3,000 is possible," if the
U.S. recovery continues.
"The current expansion is more than five years old, and with
little evidence of global synchronicity, there are no signs as yet
that the global economy is overheating," they said.
Data: The highlight on Tuesday is the ISM manufacturing reading,
due shortly after the markets open, at 10 a.m. Eastern Time.
Economists polled by MarketWatch expect the index to come in at
56.6% in August, down from 57.1% in July, which was the strongest
level since April 2011. However, any reading above 50% still
indicates expansion.
"With bullish expectations here, any shortfall could leave
traders scrabbling to lock in profits after Friday's bumper close,"
said Joao Monteiro, analyst at Valutrades, in a note.
Also out at 10 a.m. Eastern Time, construction spending for July
is forecast to have grown by 1%, after falling 1.8% in June.
Markit's manufacturing purchasing managers' index for August is
out at 9:45 a.m. Eastern Time.
Movers and shakers: Apple Inc. (AAPL) picked up 1% in premarket
trade, as buzz builds ahead of a Sept. 9 event for the maker of
iPhones and iPads. The highly anticipated iPhone 6 and possibly
iWatch may be unveiled at the event.
Dollar General Corp. (DG) added 1.7% after the discount retailer
lifted its offer for smaller rival Family Dollar Stores Inc. (FDO)
to $80 a share from $78.50 a share. Family Dollar shares rose 1.5%
premarket.
Tesla Motors Inc. (TSLA) climbed 2.3% ahead of the open, set to
add to gains from last week. On Friday, the electric-car
manufacturer hit an intraday record of $271.40 after reaching an
agreement with China Unicom for charging stations in China.
Shares of Exelixis Inc. (EXEL) tanked 52% in premarket action
after the biotech company late Monday said a clinical trial failed
to meet its goal and that it would cut its workforce by about
70%.
Other markets: Asian markets closed mainly higher, and Europe
followed suit with all major benchmarks in positive territory.
Metals prices declined across the board, while oil prices moved
sharply lower as well. The dollar advanced against most major
currencies. The euro (EURUSD) reached a one-year low against the
dollar amid uncertainty ahead of the European Central Bank meeting
on Thursday. The shared currency traded at $1.3115 at the latest,
down from $1.3129 late Monday.
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