In early trading, the Dow Jones industrial average fell 20.65, or 0.15%, to 13,337.09. The Standard & Poor''s 500 index was down 0.21, or 0.01%, at 1,473.78, and the Nasdaq composite index was up 6.08, or 0.23%, at 2,602.44. Bonds were little changed. The yield on the 10-year Treasury note was at 4.53%, the same as late Friday.


[R]09:00AM U.S. stock futures indicated a lower opening ahead of economic data.[/R]

U.S. stock futures were pointing slightly lower on Tuesday after the long-weekend holiday, with investors awaiting economic reports including data on monthly auto sales. Automakers are expected to release the weakest sales in August since a strike at General Motors about ten years ago.

The Institute of Supply Management is also due to release its manufacturing survey, which is expected to be above the 50% level that indicates economic growth. Merrill Lynch slashed its earnings estimates on 12 stocks, due to a potential possibility of a 65% U.S. recession.

The broker cut its rating on FTI Consulting (FCN: chart) to sell from neutral, Heidrick & Struggles (HSII: chart) to sell from buy, Korn Ferry (KFI: chart) to neutral from sell and Manpower (MAN: chart) to neutral from buy. Merrill Lynch also upgraded Iron Mountain (IRM: chart) to buy from neutral.

Among other stocks driven by analyst comments, Intel (INTC: chart) edged up 0.4% after Banc of America Securities lifted its price target to $31 from $29, boosted by a strong demand for notebook computers. S&P 500 futures fell 3.6 points at 1,473.10 and Nasdaq 100 futures declined 3.75 points at 1,991.00. Dow industrial futures fell 17 points.