By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) ? A fresh measure of U.S. job growth will grab next week?s spotlight in the financial markets, but that will compete for investor attention with Greece?s potential exit from the euro zone.
MarketWatch Week Ahead: Key jobs data, auto sales
Coming up next week: the all-important May jobs report, and AllThingsDigital's D10 conference will host Apple CEO Tim Cook. Laura Mandaro has details on Markets Hub. Photo: Getty Images.
?We are hostage again to what goes on in Europe,? said Michael Gayed, chief investment strategist at Pension Partners LLC. ?While better economic data in the U.S. next week might bolster risk sentiment, it likely will not be enough to get rid of the dark clouds forming over the euro zone.?
The technology sector, meanwhile, will also be in the spotlight as some of the market?s biggest names will be gathering at the D10 All Things Digital conference that begins Tuesday. Separately, retailers and the auto industry are scheduled to report their latest sales figures.
European Union leaders failed to come up with a new strategy for Greece during an informal meeting on Wednesday. Dueling views about defusing the Greek crisis as well as the growing economic weakness in Europe have been a rising worry in global markets.
Greece leaving the euro zone ?would erode confidence and lead to bank runs in Greece, Spain and Italy, which could easily explode the world over,? said Keith Springer, president of Springer Financial Advisors in Sacramento, Calif.
U.S. economic data released in the past week were mostly upbeat, however, showing increases in sales of new and existing homes, an unexpected rise in durable-goods orders and a climb in the consumer sentiment index to its highest level since October 2007. Read more on consumer sentiment.
Against that backdrop, the Dow Jones Industrial Average /quotes/zigman/627449 DJIA -0.60% ?closed at 12,454.83, down 0.6% on Friday, but up 0.7% for the week.
The Nasdaq Composite /quotes/zigman/123127 COMP -0.07% ?fell 0.1% to end at 2,837.53, tacking on 2.1% from a week ago. The S&P 500 /quotes/zigman/3870025 SPX -0.22% ?climbed 0.2% to finish at 1,317.82, up 1.7% for the week. Read about Friday?s stock market action.
?There are few safe havens left to absorb scared capital.?
Michael Gayed, Pension Partners LLC
?The biggest issue for markets in the very near-term is addressing whether the fear being expressed in the bond markets will filter through to equities with a lag,? said Gayed. ?While markets have bounced off of deeply oversold levels, the problem is that there is little confirmation in other areas of the investible universe.? Read about Friday?s bond market.
?The euro seems to be unable to catch a bid, emerging markets continue to weaken, 30-year Treasurys remain at panic levels, and sectors which are not cyclically sensitive continue to outperform,? he said.
?There are few safe havens left to absorb scared capital,? Gayed said. And strength in the dollar, which rose Friday to its highest level since 2010, ?is a reflection of European confidence weakness.? Read about Friday?s action in currencies.
?Pageant of uglies?
Overall, the U.S. markets were roiled this past week by what Springer referred to as ?yet another edition of the living Greek tragedy.?
/quotes/zigman/627449
US : DJ-Index
Volume: 93.00M
May 25, 2012 4:30p
/quotes/zigman/123127 US : U.S.: Nasdaq
Volume: 0.00
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/quotes/zigman/3870025 US : S&P Base CME
Volume: 449.80M
May 25, 2012 4:30p
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