MARKET SNAPSHOT: Stock Futures: Dow's Hold On 17,000 Looks Shaky

By Victor Reklaitis and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) --The Dow Jones Industrial Average may battle Tuesday to keep a grip on that key 17,000 level if stock futures are any indication of how the session will go.

Futures pointed to U.S. stocks continuing their retreat from records ahead of the unofficial start of earnings season, marked by Alcoa Inc.'s quarterly release after the market's close. Tuesday is expected to be light on top-tier economic releases, although job openings data and two Federal Reserve speakers are on tap.

Futures for the Dow industrials (DJU4) fell 25 points, or 0.2%, to 16,921, while those for the S&P 500 (SPU4) eased 3.50 points, or 0.2%, to 1,967.50. Futures for the Nasdaq 100 (NDU4) backed off 5.75 points, or 0.2%, to 3,898.50.

On Monday, equities pulled back from record closes achieved at the end of last week, with the Dow industrials (DJI) finishing down 0.3% to 17,024.21. The blue-chip gauge had shot past 17,000 and the S&P 500 (SPX) also nailed a new closing high last Thursday after upbeat jobs data.

A small-business optimism index showed a June dip amid a big fall in those who expect the economy to improve. Job-openings data for May is coming from the Labor Department at 10 a.m. Eastern. Consumer credit data for May is coming at 3 p.m. (Read more: Two of Yellen's favorite jobs indicators are coming Tuesday http://blogs.marketwatch.com/capitolreport/2014/07/07/two-of-yellens-favorite-jobs-indicators-are-coming-tuesday/?link=instory.)

Mixed in with data, Richmond Federal Reserve President Jeffrey Lacker will speak at 1 p.m. Eastern and Minneapolis Fed President Narayana Kocherlakota at 1:45 p.m. Kocherlakota is a voting member of the Fed's policy committee this year, but Lacker is not.

The job market may be recovering, but that isn't helping sales at retailing giant Wal-Mart Stores Inc. (WMT), an executive at that company told Reuters in an interview that published on Monday.

"It's really hard to see in our business today ... that it's gotten any better," said Bill Simon, president and chief executive officer of Wal-Mart U.S., of the improving employment picture.

After the close, Alcoa (AA) is forecast to report per-share earnings of 12 cents on revenue of $5.61 billion for the second quarter. Shares were up 0.3% in premarket action. Check out: What to watch for in Alcoa earnings

Expectations for second-quarter earnings have been "dialed down, so it should be easy for the corporates to impress, although the big figure many will be watching now is whether the Dow can indeed hold on to that 17,000 level," said Joao Monteiro, analyst at Valutrades, in a note.

Among individual stocks, Groupon Inc.(GRPN) jumped nearly 6% premarket after B. Riley upgraded the daily-deals site to buy, while Delta Air Lines Inc.(DAL) was set to open lower again after dropping sharply in two of the past three sessions. (Read more in the Movers & Shakers column http://www.marketwatch.com/story/alcoa-allergan-and-petsmart-are-stocks-to-watch-2014-07-07.)

In other markets, the Nikkei 225 index closed down 0.4%, though the rest of Asia largely held steady. The Stoxx Europe 600 dropped after weak German trade data supported the view that economic activity in the country is slowing.

Gold prices (GCQ4) pushed higher, while crude oil dipped as the market continued to take in reports that Libya will restart crude exports. The British pound (GBPUSD)slipped on unexpectedly weak U.K. factory data.

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