Stocks poised to start year higher

NEW YORK (CNNMoney) -- U.S. stocks were poised to kick off the new year with gains Monday, as investors returned from the holidays and awaited a key report on manufacturing.

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

Stocks ended a roller coaster year with a lackluster showing Friday, but all three major indexes logged double-digit percentage gains for the year. The Dow Jones industrial average finished 2010 up 11%, the S&P 500 climbed 13%, and the Nasdaq rose 17%.

While the economy has a long road to recovery, investors are bullish about the upcoming year.

"There's an overall optimism in the market and traders are going to be looking for more good economic data," said Len Blum, managing director at Westwood Capital LLC.

"Stocks are at two-year highs -- and momentum has been helped by the stimulus -- so the real question now is whether this momentum will turn into significant economic growth, which means making a meaningful change in unemployment and dealing with real estate weakness," he added.

Economy: On the first trading day of 2011, traders will be eyeing a report on manufacturing data for signs of economic strength

The Institute for Supply Management's manufacturing index for December is due after the start of trading, and is expected to have edged up to 57.3 from 56.6 in November. Any number above 50 indicates growth in the sector.

A report on construction spending will also be released after the opening bell. Economists are looking for an increase of 0.2% in November, following a 0.7% rise in October.

The most closely watched report of the week will be the government's reading on the labor market, due Friday. Economists expect employers boosted payrolls by 132,000 last month, following a 39,000 gain in November.

Companies: Bank of America (BAC, Fortune 500) announced Monday that it is taking a charge for faulty mortgages sold to Freddie Mac and Fannie Mae. Bank of America expects to take a provision of about $3 billion related to the loans and an impairment charge of $2 billion to fourth-quarter results. The bank has made cash payments of about $1.3 billion to both Freddie Mac and Fannie Mae.

Shares of Bank of America rose more than 5% before the opening bell.

Late Sunday, the New York Times reported Goldman Sachs (GS, Fortune 500) and an anonymous Russian investor have invested $500 million in Facebook. The deal values the social networking giant at $50 billion -- a valuation higher than CNNMoney parent Time Warner (TWX, Fortune 500), as well as other major media companies. Shares of Goldman Sachs jumped 1.5% in pre-market trading.

World markets: European stocks were higher in midday trading. France's CAC 40 rose 1.8% and Germany's DAX gained 1.4%. Britain's market was closed.

Most Asian markets were closed Monday. Tokyo and Shanghai were dark, while the Hang Seng in Hong Kong finished 1.7% higher.

Currencies and commodities: The dollar gained against the euro, the Japanese yen and the British pound.

Oil for February delivery rose 80 cents to $92.18 a barrel.

Gold futures for February delivery rose $1.60 to $1,424.40 -- topping its previous intra-day record of $1,421.20.

Bonds: The price on the benchmark 10-year U.S. Treasury fell Monday, pushing the yield up to 3.34% from 3.30% Friday.