MARKET SNAPSHOT: U.S. Stocks: Futures Climb Ahead Of ISM Data

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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