Stocks ready to claw back

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.

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.

"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 and spending is due out before U.S. markets open. Personal income and spending are both expected to have risen in 0.3% in December, according to a Briefing.com consensus of economists.

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 lower in midday trading.

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

Oil: The price of oil rose 26 cents per barrel to $73.15.