The economic calendar in the U.S. Tuesday includes the Institute for Supply Management's manufacturing index for August. Economists surveyed by Reuters expect a reading of 50.0, versus 49.8 in July.
U.S. stocks on Friday finished with modest gains after Federal Reserve Chairman Ben Bernanke made clear he's open to another round of quantitative easing in remarks at the global economic symposium in Jackson Hole, Wyo. The Dow Jones Industrial Average closed up 90 points, or 0.69%, at 13,091. The Dow gained 0.63% gain in August. The index is up 7.2% year to date.
European Central Bank President Mario Draghi indicated Monday the bank would be open to buying government bonds that mature in less than three years of troubled eurozone countries. Draghi's comments came during a closed hearing at the European Parliament, according to a report from The Wall Street Journal.
Valeant Pharmaceuticals ( VRX) said Monday it agreed to buy dermatology products maker Medicis Pharmaceutical ( MRX) for about $2.6 billion in cash. Canada's Valeant will pay $44 a share for Medicis, which represents a 39% premium over Medicis' closing price Friday of $31.87. The companies expect the merger to close early next year.
Campbell Soup ( CPB) is expected by analysts Tuesday to post fiscal fourth-quarter earnings of 39 cents a share on revenue of $1.59 billion. Pork processor Smithfield Foods ( SFD) is expected by analysts to post fiscal first-quarter profit of 45 cents a share on revenue of $3.16 billion.
Automakers such as General Motors ( GM) and Ford ( F) report monthly sales results for August on Tuesday.
The Democratic National Convention opens Tuesday in Charlotte, N.C. President Obama will formally accept his party's nomination at Bank of America Stadium on Thursday. -- Written by Joseph Woelfel >To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: firstname.lastname@example.org.