Wall Street Seeks Recovery From Bruising Friday

The stock market's best May since 2009 also ended with its biggest losses since April 15,as investors grapple with the potential end – or at least tapering – of the Fed's accommodative monetary policy. The major averages sit at 2-week lows as the market enters the month of June, which saw solid gains a year ago.

The nation's automakers issue their May sales figures throughout the morning, with analysts predicting the biggest year-over-year increase for Ford at 13 percent. GM is seen posting a 1.9 percent rise, with Chrysler up 9 percent, and Toyota down 0.2 percent.

The Institute For Supply Management is out with its monthly manufacturing index for May at 10 a.m. ET, with consensus forecasts calling for a slight increase to 51.0 from April's 50.7.

Also at 10a.m. ET, the government is out with April construction spending, expected torise 0.7 percent after falling 1.7 percent in March.

Only a handful of companies are on today's earnings calendar, with restaurant chain Cracker Barrel (CBRL) out with numbers before the opening bell and defense contractor SAIC (SAI) scheduled to issue quarterly numbers after the closing bell.

The weekend meeting of the American Society of Clinical Oncology puts a number of drugmakers in our stocks to watch list this morning, based on positive announcements about drugs in the development pipeline. Among them: A Merck (MRK) melanoma drug helped shrink tumors in 38 percent of patients with advanced melanoma in an early stage study. Merck will now move directly into a late-stage clinical trial for the drug, known as lambrolizumab.

GlaxoSmithkline's(GSK) Votrient was found to delay relapses in ovarian cancer patients, afinding that may lead to the drug being used as maintenance therapy.

Amgen's(AMGN) melanoma drug T-Vec was shown in an interim trial to improve survival incertain skin cancer patients by 21 percent compared with standardtreatment.

Other stocks to watch: Apple(AAPL) will be in court today, defending itself against charges that it conspired to fix prices of electronic books. Separately, the Wall Street Journal reports Apple is getting closer to debuting a streaming music radio service.

Microsoft(MSFT) is working on what may turn into a significant restructuring of thecompany, according to All Things Digital.

AIG (AIG)is fighting against approval of Bank of America's (BAC) $8.5 billion mortgagesettlement with investors, with the issue headed for a New York State courtthis morning. A judge will decide whether to approve the settlement, butAIG wants Bank of America to pay billions more to settle other claims relatedto mortgage securities.

Rio Tinto (RIO) is drawing suitors for its Canadian iron ore operations, according to the Wall Street Journal. Rio Tinto's stake is valued at about $4 billion,with Glencore Xstrata and Blackstone Group (BX) among the possible bidders.