By Denise Duclaux
New York - Stocks are poised to open a touch lower on Tuesday as investors pause a day after pushing the market to fresh highs for the year and wait for more evidence of an economic rebound.
Major market gauges jumped to close at 18-month highs on Monday, led by industrial stalwarts International Paper Company and Alcoa Incorporated, after a report showed US factories charged ahead in November at their fastest pace since 1983.
The Dow and the Standard & Poor's 500 scored their highest closes since the end of May 2002, while the Nasdaq ended at its highest level since mid-January 2002. Some analysts expect the rally to continue through the end of the year as economic reports come in strong.
"I think it's just a matter of time before we reach some milestones here - Dow 10,000 and Nasdaq 2,000," said Peter Cardillo, chief strategist at Global Partners Securities.
On Monday, the Dow Jones industrial average closed up 116.59 points, or 1.19 percent, at 9,899.05. The Standard & Poor's 500 Index ended up 11.92 points, or 1.13 percent, at 1,070.12. The technology-focused Nasdaq Composite Index finished up 29.56 points, or 1.51 percent, at 1,989.82.
Friday will bring the payrolls report for November, which analysts expect will reveal a fourth straight month of net employment gains. An ailing job market has long been the recovery's weak spot, but recent snapshots of the economy have shown improvement in demand for labor.
Equity futures pointed to a slightly lower open after Monday's rally. Futures eased 1.10 points for the Standard & Poor's 500, shed 14 points for the Dow and nosed down 2 points for the Nasdaq 100.
European stocks hit their highest level this year on Tuesday, boosted by gains on Wall Street overnight and further positive data on the U.S. economy, but investors fretted that a recovery has already been factored in. Asian markets were mixed, with Japan's Nikkei 225 index ending flat.
The dollar remained under pressure from concerns over the U.S. current account deficit and Washington's handling of post-war Iraq.
In corporate news, PepsiCo Inc. said before the open it would cut about 750 jobs as it reorganizes its North American soft drink business and its international operations and closes some Frito Lay plants and manufacturing lines. Shares closed at $48.71.
Stanley Gold, the Walt Disney Co. director who resigned from the board after Monday's close, said it would take time for a shareholder rebellion he and Roy Disney have started to reach its goal of ousting Chairman Michael Eisner. Disney closed at $23.17.
Ingram Micro Inc., the world's largest distributor of computer products, warned after Monday close that its fourth-quarter net results could "differ significantly" from the pro forma results it expects to report due to an ongoing cost cutting and restructuring program. Shares closed at $14.70.