Stocks are expected to start the New Year on a positive note today following better than expected economic news out of Germany and China. The weekend report out of China showed the country’s manufacturing sector back in expansionary territory, offsetting some of the recent anxieties about the country’s growth outlook. We also have a solid labor market reading from Germany this morning, highlighting the continued resilience in Europe’s strongest economy.

The domestic economic calendar is full of market-moving reports this week, with the December manufacturing ISM survey, Construction Spending report for November, and minutes of the Fed’s December 13 meeting on deck today. Going by the trend in the Empire State, Philly Fed, and Chicago PMI readings in recent days, today’s ISM report will likely show a modest improvement over the previous month. The Fed minutes will shed light on the ongoing debate within the FOMC about communications strategy.

The data deluge the rest of this week will be centered on labor market, with Friday bringing the December non-farm payroll report. Ahead of the Friday release, we will get the ADP and Jobless Claims data on Thursday. We also get the Factory Orders report for November on Wednesday and the nonmanufacturing ISM report on Thursday.

In corporate news, ExxonMobil (XOM) received a surprise setback in its legal battle with the government of Venezuela. The company had taken the Venezuelan government to court over the 2007 expropriation of its Cerro Negro project. Instead of the demanded $7 billion in restitution, the international arbitration panel awarded Exxon approximately $908 million in restitution for its nationalized assets. This setback notwithstanding, Exxon still has a pending case against Venezuela at the World Bank. A verdict in that case is expected next month.

In other news, French oil giant Total (TOT) has acquired a joint venture stake in Chesapeake’s (CHK) shale gas acreage in eastern Ohio for $2.32 billion. The deal gives Chesapeake the financial resources to develop this liquids rich resource and bring down its debt load and is in-line with the recent trend of international oil majors making entry in U.S. shale gas assets.

Today’s economic releases include the ISM Manufacturing Index which is expected to increase to 53.3 and Construction Spending, both of which are scheduled for release at 10:00 AM EST.

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