US STOCKS-Wall St set for higher open on strong China data

* Manufacturing, construction spending data due

* Investors look ahead to Fed meeting, mid-term elections

* Futures up: S&P 6 pts, Dow 53 pts, Nasdaq 8 pts

* For up-to-the-minute market news see [STXNEWS/US]
(Updates with personal income data)

By Angela Moon

NEW YORK, Nov 1 (BestGrowthStock) – Wall Street was set for a
higher open on Monday after strong Chinese factory data gave a
green light to risk-taking, sending resources-related stocks
higher.

Chinese manufacturing expanded at the fastest pace in six
months in October, giving a boost to commodity shares,
including Freeport-McMoRan Copper & Gold Inc (FCX.N: ), which
rose 1.7 percent $96.40 in premarket trade. Oil futures rose
2.5 percent.

Key base metals prices also rose on expectations the U.S.
Federal Reserve will add monetary stimulus this week, prompting
further weakness in the dollar.

Investors also eyed U.S. manufacturing and construction
spending reports due after the opening bell.

“The futures are pointing to a stronger open now, and we
are likely to see some gains, but that could turn as we go
through the day and see more volatility ahead of the elections
and Fed events,” said Peter Cardillo, chief market economist at
Avalon Partners in New York.

S&P 500 futures (SPc1: ) rose 6 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 (DJc1: ) gained 53
points, and Nasdaq 100 futures (NDc1: ) rose 8 points.

Futures briefly trimmed gains after data showed U.S.
consumer spending rose by less than expected in September as
income fell for the first time in 14 months, while inflation
remained muted. But the futures rose back to initial levels as
the data reinforced expectations of more monetary stimulus from
Fed later this week. For details, see [ID:nN01234661]

At 10 a.m. EDT (1400 GMT), the Institute for Supply
Management releases its October manufacturing index. Economists
in a Reuters survey expected a reading of 54.0 versus 54.4 in
September. The Commerce Department reports on September
construction spending. Economists forecast a drop of 0.5
percent, compared with a 0.4 percent rise in the prior month.

The Fed looks likely to announce it will relaunch heavy
bond buying after two days of meetings end on Wednesday. Most
analysts expect the size and the scope of asset purchases to be
about $100 billion a month, starting with a plan to buy $500
billion in bonds between now and early 2011.

In Tuesday’s mid-term congressional elections, Republicans
look set to take control of the U.S. House of Representatives,
while Democrats are expected to retain control of the Senate,
setting up the prospect of legislative gridlock. [ID:nUSVOTE]

U.S. stocks (Read more about the stock market today. ) ended flat Friday, but wrapped up another
strong month as hopes of a new round of quantitative easing
have weakened the dollar while giving a boost to risky assets
such as equities and commodities.

The dollar index (Read more about the global trade. ) (.DXY: ) dipped 0.3 percent.

Financial stocks were expected to be pressured by merger
and bankruptcy news.

Wilmington Trust Corp (WL.N: ) fell 45.9 percent to $3.85 in
premarket trade after the company said it will merge with M&T
Bank Corp (MTB.N: ), a deal worth $351 million.

Ambac Financial Group Inc (ABK.N: ) was off 44.3 percent to
45 cents after the bond insurer, once the largest in the United
States, said it may file for bankruptcy protection this year.
[ID:nN01129385]
(Reporting by Angela Moon; editing by Jeffrey Benkoe)

US STOCKS-Wall St set for higher open on strong China data