* ISM manufacturing, construction spending data on tap
* Delta among suitors for Virgin Atlantic stake- sources
* Futures up: Dow 40 pts, S&P 4.3 pts, Nasdaq 14 pts
NEW YORK, Dec 3 U.S. stock index futures edged
higher on Monday on upbeat factory data from China, but concerns
over budget dealings in Washington are expected to keep traders
* China's economy picked up in November even as a broader
global recovery remains fragile, with factory activity patchy
elsewhere in Asia as demand from the developed world remains
* Markets have focused for weeks on negotiations in
Washington over some $600 billion in spending cuts and tax hikes
scheduled to kick in next year that could tip the U.S. economy
back into recession.
* U.S. Treasury Secretary Timothy Geithner pushed
Republicans on Sunday to offer specific ideas to cut the
deficit, and predicted that they would agree to raise tax rates
on the rich to obtain a year-end deal to avoid the "fiscal
* S&P 500 futures rose 4.3 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures rose 40
points, and Nasdaq 100 futures added 14 points.
* The S&P 500 on Friday closed its fifth positive month in
six and is up 8 percent since the end of May.
* Greece said it would spend 10 billion euros to buy back
bonds in a bid to reduce its ballooning debt and unfreeze
long-delayed aid, setting a price range above market
expectations to ensure sufficient investor interest. The buyback
is central to the efforts of Greece's foreign lenders to put the
near-bankrupt country's debt back on a sustainable footing.
* The Institute for Supply Management releases its November
manufacturing index at 10 a.m. ET (1500 GMT). Economists in a
Reuters survey expect a reading of 51.3 for the main index
versus 51.7 in October.
* Also at 10 a.m. ET, the Commerce Department releases
October construction spending data. Economists forecast a rise
of 0.5 percent compared with a 0.6 percent rise in September.
* Singapore Airlines said it was in talks with
interested parties to sell its 49 percent stake in British
carrier Virgin Atlantic, with sources revealing that Delta Air
Lines was among the potential suitors.