Stocks ready to claw back

NEW YORK (CNNMoney.com) -- U.S. stocks were poised to kick off the new month on a brighter note Monday as investors consider the release of the Obama administration's new budget, and as Toyota unveiled its plan to fix gas pedals for millions of vehicles.

Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

Wall Street had one of its worst months in nearly a year in January, as bank lending curbs in China, President Obama's plan to limit big banks and debt worries rattled investors.

Mark Luschini, chief investment strategist for Janney Montgomery Scott, said President Obama is helping to influence investor sentiment toward the positive, with his focus on the job creation aspects of the stimulus plan.

"The announcement that's expected to come out [from Obama on Monday] is focused on what's important, which is creating jobs," he said. "He's going to be focused on what the market wants to hear most, which is something directed at the job market."

Economy: President Obama on Monday will reveal a $3.8 trillion budget for 2011 that tries to balance the competing goals of continued government spending to boost the fragile economic recovery and controlling the nation's deficit. The president is due to highlight his budget priorities in a speech at 10:45 a.m. ET.

A report on personal income showed an increase of 0.4% for December. This was more than the 0.3% increase that was expected by a Briefing.com consensus of economists. Also, personal spending edged up 0.2% in December, falling short of the 0.3% increase forecast.

Readings on construction spending and nationwide manufacturing also are on tap.

Companies: Toyota on Monday unveiled details of its plan to fix millions of recalled gas pedals, and said it has already shipped out the new parts.

The automaker has recalled 2.3 million vehicles in the U.S. over a gas pedal that could stick in some circumstances as it becomes worn out.

World markets: In Asia, Japan's Nikkei managed slim gains. Major European indexes were higher in midday trading, reversing course after a slump earlier in the day.

Cash and bonds: The dollar was mixed versus other currencies, slipping against the euro and the yen but rising against the pound. The price of the 10-year note rose, pushing down the yield to 3.61%.

Oil: The price of oil rose 70 cents per barrel to $73.59.