Stocks set for weak open

NEW YORK (CNNMoney.com) -- Stocks were poised to fall at Monday's open, as investors await reports expected to show slowing in both the manufacturing sector and the housing market.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were lower ahead of the opening bell. Futures measure current index values against perceived future performance.

Stocks started October on a positive note -- although Friday's advance was mild. And with economic uncertainty continuing to underpin the markets, investors could be in for a rough month.

Stocks will keep churning higher, as the S&P 500 heads toward its next key levels between 1,150 and 1,170, said Frank Longman, a market technician with Brean Murray, Carret & Co. There may be some selling once those levels are breached but the trend remains upward, he said.

Also, more money is likely to flow into the market as investors anticipate the Federal Reserve will soon buy more U.S. Treasurys to stimulate the economy, he said.

"The focus for us is that the data points are secondary to the liquidity injection and how much that excess liquidity is going to shift prices," he said.

Economy: A report from the Commerce Department is expected to show a 0.4% dip in factory orders in August, following a 0.1% increase in July. That could heighten fears that growth in U.S. manufacturing is slowing down.

Also due after the bell, the National Association of Realtors releases its pending home sales index. The report is expected to show a mere 1% uptick in pending home sales in August, down from the 5.2% increase the month before.

Both reports could reignite concerns that the recovery is stalling.

Companies: French pharmaceutical giant Sanofi-Aventis (SNY) launched a hostile takeover of Genzyme (GENZ, Fortune 500). Sanofi said it was taking its $18.5 billion offer for its rival directly to shareholders, after its efforts to work with the board of Genzyme were "blocked at every turn."

Shares of Sara Lee (SLE, Fortune 500) rose more than 18%, after the New York Post reported that the company turned down a $12 billion buyout offer from investment firm KKR & Co.

World markets: European stocks declined in morning trading. The CAC 40 in France and Germany's DAX each were down about 0.9% in mid-day trading. Britain's FTSE 100 fell 0.2%

In Asia, the Hang Seng gained nearly 1.2%. Japan's Nikkei finished the session down 0.3%. The Bank of Japan started a two-day policy meeting. The Shanghai Composite was closed for Golden Week.

Currencies and commodities: The dollar rose against the euro and the Japanese yen, but fell slightly against the British pound.

Gold futures for December delivery fell $2.20 to $1,315.60 an ounce.

The price of crude oil for November delivery rose 2 cents to $81.60 per barrel.

Bonds: Prices for U.S. Treasurys rose, pushing the yield on the 10-year note down to 2.48% from 2.51% late Friday. Bond prices and yields move in opposite directions.