By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Greece worries resurface for investors; China rate cut brushed
aside
U.S. stocks were making lackluster moves on Monday, with the
main indexes hovering near previous closing levels as investors
look set to cash in on some of last week's gains.
The S&P 500(SPX) switched between small gains and losses, at
2,114, with six of its 10 main sectors trading lower. The energy
sector led the losses. The Dow Jones Industrial Average (DJI) was
about flat at 18,177.64, and The Nasdaq Composite (RIXF) was
marginally higher, up about 14 points, at 5,017.
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)Earlier
in trading Monday, it looked as if stocks would struggle to build
on its gains from Friday. 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).
Baird raised the rating of both Joy Global Inc.(JOY) and
Caterpillar Inc. (CAT) to outperform from neutral, sending those
shares higher.
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,
while crude-oil prices
(http://www.marketwatch.com/story/crude-oil-futures-struggle-for-direction-after-us-jobs-data-supply-rise-2015-05-11)(CLM5)
reversed earlier gains and were slightly lower.
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