5:02 AM
By Chuck Mikolajczak
NEW YORK | Tue Feb 1, 2011 7:44am EST
NEW YORK (Reuters) - U.S. stock index futures rose on Tuesday as investors turned their attention from geopolitical tremors in the Middle East to data they hope will provide insight into the state of the U.S. economic recovery.
The Institute for Supply Management's January manufacturing index is due at 10 a.m. EST. Economists in a Reuters survey expected a reading of 58.0 versus 58.5 in December.
At the same time, the Commerce Department will report on December construction spending. Economists look for construction spending to be unchanged, compared with a 0.4 percent rise the prior month.
Investors appeared to shrug off the tumultuous events in Egypt, as more than 200,000 Egyptians poured into central Cairo in the biggest demonstration so far in an uprising against President Hosni Mubarak's authoritarian rule.
"The market is resuming its on-track performance to its key 1,300 level," said Andre Bakhos, director of market analytics at Lek Securities in New York.
"The situation in Egypt seems to be contained, giving investors renewed optimism that a resolution will be found. For the most part, economically speaking, data has been conducive to further market gains."
S&P 500 futures rose 4.8 points and were 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 gained 25 points, and Nasdaq 100 futures were up 12.25 points.
Pfizer Inc was set to post quarterly earnings Tuesday, and the company's new boss, Ian Read, will likely be asked to defend the company's 2012 forecast.
Archer Daniels Midland jumped 4.1 percent to $34 in premarket trading after the agribusiness group reported stronger-than-expected quarterly earnings on rising grain prices and robust global demand.
Other companies set to report include United Parcel Service Inc and Electronic Arts Inc.
U.S. automakers were set to report January sales, which were expected to increase from a year ago but slip from December. The data was expected to reflect a gradual recovery for the auto industry after the recession and the worst sales performance in nearly three decades.
European shares rose as confidence about the global economy gathered pace following upbeat euro zone manufacturing data while strong earnings from ARM and Infineon lifted technology firms.
Asian stocks advanced 0.8 percent, led by resource shares as strong U.S. factory data and surging commodity prices offset fears about the unrest in Egypt.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
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