NEW YORK (CNNMoney.com) -- Stocks started out lower Tuesday, following a start-of-the-year runup on economic optimism.

The Dow Jones industrial average was down 33 points, or 0.3%, the Nasdaq composite eased 5 points, or 0.2%, and the S&P-500 dipped 1 point, or 0.1%.

"Pre-market activity is pretty dull and flat this morning," said Derek Hoffman, North Carolina-based chief executive and founder of Wall St. Cheat Sheet, before the opening bell. "I think a lot of traders have kind of a cautious note prior to the economic results later in the week. All eyes are staring at labor data."

Hoffman was referring to the government's payroll figure on Friday, which is expected to be flat for December, according to a Briefing.com consensus of economist opinion.

He said a number showing unexpected growth would "drive the optimism to kick off the markets for the year," while a decline "could deflate the mini-bubble rally that we're experiencing."

Stocks surged Monday to start the new year after a report showed improvement in the manufacturing sector and a weak dollar propelled commodity prices. All three major indexes rose between 1.5% and 1.7% and closed at 15-month highs.

Economy: After the market opens, a National Association of Realtors' report is expected to show pending home sales fell 2% in November, according to a consensus of economists surveyed by Briefing.com.

Also at 10 a.m. ET, a report is expected to show factory orders increased by 0.5% in November, after jumping 0.6% the previous month, according to the Briefing consensus.

Later, December data will be released for auto and truck sales by individual manufacturers.

Companies: Google is expected to unveil its Nexus One on Tuesday, the much anticipated smart phone designed by the Internet search leader. Google shares were slightly higher in premarket trading.

Also, Apple is expected to ship its long-awaited tablet computer in March, after a Jan. 27 unveiling, according to the Wall Street Journal.

Kraft Foods said Tuesday it has agreed to sell its frozen pizza business to the Swiss food company Nestle for $3.7 billion in cash, using the proceeds to raise its previously announced $16 billion bid for British candy maker Cadbury. Kraft's frozen pizza brands include Tombstone, DiGiorno and California Pizza Kitchen.

Kraft also extended the deadline for its Cadbury offer to Feb. 2. Shares of Kraft, a Dow component, were little changed in premarket trading.

World markets: Stocks in Asia closed higher, with Tokyo's Nikkei index up 0.3%. European indexes were mixed in midday trading.

Money and oil: The dollar fell against the euro and yen, but was higher against the U.K. pound.

Crude oil for February delivery was practically unchanged, down 1 cent to $81.50 a barrel. This was after oil closed at its highest level in more than 14 months on Monday over a pricing dispute and disruption in crude exports between Russia and Belarus.

Gold for February delivery gained $2.10 to $1,120.40 an ounce.

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