Investors look ahead enthusiastically to August reading on manufacturing, consider Vivendi-NBC talks
September 2, 2003: 7:17 AM EDT
NEW YORK (CNN/Money) - Stocks looked likely to open higher Tuesday after the long holiday weekend and as investors waited for a reading on how the manufacturing sector faired in August.
Just after 7 a.m. ET, S&P and Nasdaq futures edged higher.
Stocks posted modest gains Friday, capping another strong month for the market. The Nasdaq closed at a new 16-month high, and managed gains for a seventh consecutive month. The Dow and S&P, which hit its highest point in two months Friday, each have risen for six straight months. U.S. financial markets were closed for Labor Day Monday. (For more on Friday's market action, click on the chart.)
Some traders said activity could be light Tuesday, though there is some news that could move the market.
On the economic front, investors will get a reading on manufacturing from the Institute for Supply Management, a group of the nation's purchasing managers. ISM's index probably rose to 53.5 in August from 51.8 in the prior month, according to economists surveyed by Briefing.com.
"The U.S. manufacturing ISM index should show a decent gain today, reinforcing the market's conviction that the U.S. recovery is for real," E.TRADE Securities strategist Rupert Thompson told Reuters.
In corporate news, NBC was ready to enter exclusive talks with Vivendi to purchase some of its entertainment units, including, possibly, Universal and USA Networks, according to Reuters. The companies have yet to form a final deal. Shares of NBC parent company General Electric (GE: down $0.11 to $29.57, Research, Estimates) bounced 1 percent in European trading.
Auto parts makers also could get some attention Tuesday. Merrill Lynch downgraded its investment rating on auto-related stocks to "market weight," citing the recent run up in prices.
The firm also upgraded mortgage providers Freddie Mac (FRE: up $0.67 to $53.15, Research, Estimates) and Fannie Mae (FNM: up $0.79 to $64.79, Research, Estimates) to "buy" from "neutral" saying that while the news remains challenging, much of it has already been priced into the stocks.
September, historically, has been a bad month for the markets. It has been the second worst month, after August, for the Dow and S&P, and the worst for the Nasdaq, according to the Hirsch Organization, publishers of the Stock Trader's Almanac.
Overseas, stocks rose in Asia and mostly edged higher in Europe.
Treasury prices fell, pushing the yield on the 10-year note to 4.57 percent from about 4.46 percent late Friday.
The dollar rose against the euro and Japanese yen.
Brent crude oil prices slipped 12 cents to $29.13 a barrel in London. Gold prices eased in Europe.
Due later in the week: August auto sales, data on July construction spending and factory orders, and the big one: Friday's unemployment numbers for August.
In addition, the Federal Reserve is due to release its "beige book" report on regional economic conditions Wednesday.
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