Stock index futures were sharply higher on Monday, building on last month's solid gains, as investors focused on encouraging corporate results.
Wall Street wrapped up its best month in a year on Friday, with the major indexes each posting 7 percent increases for July as markets bounced back from a sell-off through May and June.
Strong results in Europe from big banks BNP Paribas SA
Shares of Coca-Cola Co
On the economic front, manufacturing in China shrank in July for the first time since March 2009, while it perked up in the euro zone. Markets appeared to take the Chinese data as a signal of a desired slowdown rather than an indication of a slump.
Domestic data on tap later in the morning includes ISM manufacturing for July and construction spending for June, both due at 10 a.m. EDT. The ISM reading is expected to come in at 54.1, compared with 56.2 the month before, while construction spending is seen falling 0.5 percent versus a decline of 0.2 the previous month, according to a Reuters poll.
S&P 500 futures gained 13.1 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 jumped 105 points, and Nasdaq 100 futures rose 19.75 points.
Energy shares could get a lift as oil hit a 12-week high near $80 a barrel on optimism over the strength of the recovery and the outlook for energy demand.
(Reporting by Leah Schnurr; editing by Jeffrey Benkoe)