* Bank of America to take mortgage settlement charge
* China data eases fears of more monetary tightening
* Futures up: Dow 91 pts, S&P 10.3 pts, Nasdaq 24 pts
* For up-to-the-minute market news see []
NEW YORK, Jan 3 (Reuters) - U.S. stock index futures rose
on Monday on hopes the rally will continue in the new year as
economic conditions continue to improve and as Chinese factory
inflation tempered concerns of more monetary tightening.
Investors awaited the Institute of Supply Management's
manufacturing survey, due at 10 a.m. EST (1500 GMT), for fresh
evidence on the health of the economy. Economists polled by
Reuters forecast the ISM's high-profile measure of U.S. factory
activity edging higher to 56.9 from 56.6.
"The New Year is starting off as expected, with a fresh
surge showing enthusiasm and optimism for a solid market," said
Andre Bakhos, director of market analytics at Lek Securities in
New York.
"This reflects the better economic backdrop that we've
seen, as many look at early January to be a barometer for the
year ahead, and it appears we are starting off on the right
foot."
The official Chinese purchasing managers' index edged down
in December from November and fell short of forecasts, easing
concerns that rising inflation would lead the government to
take more steps to control growth. For details see
[]
S&P 500 futures <SPc1> gained 10.3 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> jumped 91
points, and Nasdaq 100 futures <NDc1> rose 24 points.
U.S. stocks ended the year with double-digit gains, with
the S&P 500 <.SPX> recording its best December since 1991. The
gains marked a recovery to levels before the collapse of Lehman
Brothers in September 2008. For the year, the S&P rose 12.8
percent, the Dow Jones industrial average <> climbed 11
percent, and the Nasdaq <> surged 16.9 percent.
From its July low the S&P has risen 23 percent, boosted by
improving economic data, positive earnings reports and stimulus
measures by the U.S. Federal Reserve. Investors returning from
the holidays will closely watch a host of economic data this
week for signs of improvement in the economy to justify the
gains.
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For factbox on S&P 500 winners and losers in 2010, see
[]
Consumer shares lead S&P, US stocks shine in
2010,[]
Caterpillar leads blue chip advance in 2010, []
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Other data expected at 10 a.m. (1500 GMT) includes
construction spending for November, seen showing an increase of
0.2 percent, according to forecasts.
Bank of America will put aside $3 billion in the fourth
quarter related to poorly underwritten mortgages it sold to
Fannie Mae and Freddie Mac after the bank agreed to settle
claims over the repurchase of those loans. Bank of America
shares were up 4.1 percent to $13.88 in premarket trading.
[]
IPhone users complained of malfunctioning alarms on the
first working day of 2011, even after Apple Inc <AAPL.O>
claimed the phones' built-in clocks will work from Monday.
Apple shares edged up 0.9 percent to $325.47 premarket.
[]
European shares rose on the first trading day of the year,
led by gains in automakers after Porsche <PSHG_p.DE> won a
legal challenge from U.S. hedge fund groups. []
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
