MARKET SNAPSHOT: U.S. Stocks: Wall Street May Struggle As Investors Cash In On Gains

By Barbara Kollmeyer, MarketWatch

Greece worries resurface for investors; China rate cut brushed aside

Stock futures dipped on Monday, indicating Wall Street could struggle to push higher, as investors look set to cash in on some of last week's gains and fret over Greece's debt problems.

Meanwhile, interest-rate cuts out of China seemed to impress few.

Futures for the Dow Jones Industrial Average (YMM5) slipped 14 points to 18,107, while those for the S&P 500 index (ESM5) eased 1.7 points to 2,106.75. Futures for the Nasdaq-100 index (NQM5) fell 1.5. points to 4,447.25.

Friday's jobs report suggested the economy was on a solid footing, but it wasn't strong enough to move up the timing of the first rate hike by the Federal Reserve, said analysts. That "Goldilocks" report triggered the biggest one-day point gain for the Dow industrials (DJI) in more than a week. Friday's gains (http://www.marketwatch.com/story/us-stocks-a-cautious-move-higher-as-big-jobs-data-looms-2015-05-08) helped both the Dow and the S&P 500 finish a turbulent week modestly higher.

Read: "Earnings recession" on hold as quarter shows fractional gain (http://www.marketwatch.com/story/earnings-recession-on-hold-as-quarter-showing-fractional-gain-2015-05-10)

(http://www.marketwatch.com/story/earnings-recession-on-hold-as-quarter-showing-fractional-gain-2015-05-10) (http://www.marketwatch.com/story/earnings-recession-on-hold-as-quarter-showing-fractional-gain-2015-05-10)But early Monday, it looked like stocks would struggle to build on those gains. Craig Erlam, senior market analyst at OANDA, said some investors will be cashing in as the S&P 500 trades near all-time highs, especially as there's little reason for levels to be broken right now.

"The U.S. has just been through a very difficult first quarter, and the Fed is contemplating raising rates. Neither of these are consistent with equity markets breaking into uncharted territory," he said in a note.

Another factor for futures was a negative lead out of Europe (http://www.marketwatch.com/story/european-stocks-edge-higher-but-greek-worries-limit-gains-2015-05-11), where key talks on Greece's bailout take place in Brussels Monday. Little progress is expected, as Greece's 750-million-euro ($837 million) loan repayment to the International Monetary Fund due Tuesday looms. The Greece ASE Composite index was down nearly 3%.

Read: 'Groundhog week for Greece'--analysts downbeat on Eurogroup outcome (http://www.marketwatch.com/story/groundhog-week-for-greece-analysts-downbeat-on-eurogroup-outcome-2015-05-11)

No boost from China: The People's Bank of China on Sunday cut its benchmark lending and deposit rates by a quarter of a percentage point (http://www.marketwatch.com/story/china-cuts-rates-as-economic-slowdown-deepens-2015-05-10) (http://www.marketwatch.com/story/china-cuts-rates-as-economic-slowdown-deepens-2015-05-10), but neither the U.S. nor Europe markets seemed to get much benefit from the signs of more stimulus.

The third rate cut in six months is "creating fears that Chinese growth will have to be manufactured by policy changes rather than built on more-robust growth foundations, limiting the feel-good factor for Western markets", said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, in a note.

Read: Don't buy into this jobs-fueled rally, market timer warns (http://www.marketwatch.com/story/dont-buy-into-this-jobs-fueled-rally-market-timer-warns-2015-05-08)

(http://www.marketwatch.com/story/dont-buy-into-this-jobs-fueled-rally-market-timer-warns-2015-05-08)The only data of note for Monday is the labor-market conditions index for April, due around 10 a.m. Eastern Time.

Earnings season is doing a slow wind-down, with only 14 S&P 500 companies due to report this week. Dean Foods Co. (DF), Dish Network Corp. (DISH) and Sotheby's (BID) are all scheduled to post earnings ahead of the opening bell for Monday.

Other markets: Chinese stocks (http://www.marketwatch.com/story/chinese-stocks-rally-as-pboc-cuts-interest-rates-again-2015-05-11) rose for a second session on the heels of those rate cuts, with the Shanghai Composite Index gaining 3%. The Nikkei 225 index rose 1.3%, to its best close since late April.

The dollar (http://www.marketwatch.com/story/euro-lower-on-greek-fears-ahead-of-eu-ministers-meeting-2015-05-11)(DXY) moved higher across the board, with the euro dipping on jitters about Greece. Gold prices(GCM5) were marginally lower, along with crude-oil prices (http://www.marketwatch.com/story/crude-oil-futures-struggle-for-direction-after-us-jobs-data-supply-rise-2015-05-11)(CLM5).

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