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

A sluggish stock-index futures suggest that Wall Street could struggle to push higher on Monday, 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 over the weekend seemed to impress few.

Futures for the Dow Jones Industrial Average (YMM5) was flat at 18,126, while those for the S&P 500 index (ESM5) added less than a point, at 2,109.50. Futures for the Nasdaq-100 index (NQM5) rose by about a point to 4,452.50.

Friday's jobs report supported the view that the U.S. economy is on solid footing, but the data may not be strong enough to move up the timing of the first rate hike by the Federal Reserve in nearly a decade, 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 is 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 weighing on futures was Greece's bailout talks, which are taking 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. Greece's Athex 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 brokerage firm 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 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. Dish Network Corp. (DISH) said it lost subscribers, but profit doubled (http://www.marketwatch.com/story/dish-profit-doubles-but-still-losing-subscribers-2015-05-11). Sotheby's(BID) profit and revenue topped forecasts (http://www.marketwatch.com/story/sothebys-profit-revenue-tops-estimates-2015-05-11). Dean Foods Co. (DF) posted quarterly results and an outlook that beat expectations (http://www.marketwatch.com/story/dean-foods-stock-surges-after-profit-sales-and-outlook-top-expectations-2015-05-11).

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 (EURUSD) dipping on jitters about Greece. Gold prices (GCM5) were marginally lower, but crude-oil prices (http://www.marketwatch.com/story/crude-oil-futures-struggle-for-direction-after-us-jobs-data-supply-rise-2015-05-11)(CLM5) turned modestly higher.

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