In economic news, the government will report May factory orders just after the markets open. Economists expect a 1.5 percent increase after a 3 percent decline in April.
The markets will close early Tuesday ahead of the July Fourth weekend--at 1 p.m. EDT.
Stocks to watch
Internet Security Systems could get some negative attention after announcing that second-quarter results will miss estimates. The maker of computer-security software and services said its second-quarter loss, excluding acquisition costs, would be around 2 cents a share to break even on revenue of $50 million to $52 million. According to First Call, the company was expected to have profit of 15 cents a share on revenue of $65.7 million.
Rational Software also reduced its projections. The software maker said it now expects earnings for the fiscal first quarter ended June 30, excluding unusual costs, to come in between 7 cents or 8 cents per share on revenues of $172 million to $176 million. First Call had been predicting a profit of 8 cents a share on revenue of $185 million.
Flextronics International said it's deal with Motorola has unraveled. The contract manufacturer had agreed to make more than $30 billion of Motorola products.
Flextronics also said it will repurchase an equity stake that was part of last year's deal. Wireless technology giant Motorola bought a stake in the company at a discount for an initial payment of $100 million that was convertible over time into 11 million shares of Flextronics stock, or a 5 percent stake.
Sybase, a maker of database software, said its second-quarter earnings would be in line expectations. First Call predicted the company would earn about 23 cents a share.
Sybase also said its full year 2001 pro forma operating earnings would come in around between $1.10 and $1.20 a share. First Call was expecting Sybase to post a profit of $1.13 as share. Second-quarter revenue will be approximately $232 million, slightly lower than the $265 million predicted by First Call.
At the bell
The Dow Jones industrial average may open 16 points higher. The Standard & Poor's 500 index for June futures contracts was off 1.9 points to 1,244 at 7:10 a.m. EDT in 24-hour electronic trading.
Reuters contributed to this report.