Wall Street futures are indicating a positive start to the day, as U.S. traders get back to work after celebrating President’s Day on Monday.

The Buffalo Federal Reserve Bank released the New York Empire State report on manufacturing activity in the New York region this morning showing that manufacturing rose to 42.1 in February, up from last month’s figure of 39.2. This exceeded economist expectations.

So far reaction to the report has been lukewarm. Analyst are hoping the Empire State report will foreshadow an increase in the Philadelphia Fed report — usually a major market mover — due out on Thursday.

The next piece of major economic data is the U.S. industrial production numbers, due out at 9:15 ET.

In business news affecting the markets, mobile phone operator Cingular Wireless won a battle to take over smaller rival AT&T Wireless and fed hopes for a strong comeback in deal-making on Wall Street. Cingular bid US$41 billion in cash for AT&T Wireless and trumped cellphone titan Vodafone. AT&T Wireless surged almost 18% to US$13.90 before the opening bell after ending at US$11.82 on Friday.

Meanwhile, Walt Disney’s board has unanimously rejected Comcast’s unsolicited takeover offer and offered a vote of confidence for Disney Chairman and Chief Executive Michael Eisner.

In Europe at midday, stock markets are higher. London’s FTSE 100 index is up 1.1%, rising 49.4 points to 4,457.5. Frankfurt’s DAX is up 0.5% and Paris’s CAC-40 has advanced 0.8%.

In Asia, Tuesday trading ended mixed. Japan’s Nikkei index rose 1.4% on hopes for strong fourth quarter GDP data, due tomorrow. Hong Kong stocks ended slightly lower, snapping a four-session winning streak. The Hang Seng Index slid 16.09 points, or 0.12%, to 13815.44 points.

On Monday Toronto’s S&P/TSX Composite Index rose 53.05 points to close at 8747.51. The financial services sector led the way, climbing 0.7%. U.S. markets were closed.