In the past week, a European leader summit ended with no clear pathto stem the concerns about Greece. There was discussion but no conclusions about a new euro zone bond. The leaders also supported Greece’s membership in the euro zone, but they emphasized it needs to keep its commitments.

Despite the rising awareness that Greece could opt out of the euro, stocks scored their first positive week in four. The Dow gained 0.7 percent to 12,454, and the S&P 500 was up 1.7 percent to 1,317. The Nasdaq gained 2.1 percent to 2,837.

Meanwhile, Greece’s stock market, in the past week sunk to a 22-year low, losing 11.8 percent for a total 30 percent loss since the beginning of May. “Outside of Greece, the Spanish and Italian stock and bond markets were little changed, (even) with all the noise,” said Boockvar.

The fear is that if Greece leaves the euro zone, there could be bank runs in other weak peripheral countries that would be viewed as candidates to also exit the euro. Even with worries surrounding the capitalization of the Spanish banks, Spanish stocks lost just 0.4 percent for the week. Italy’s market was up 0.8 percent.

The dollar index rose 1.4 percent for the week, while the embattled euro slumped 2 percent against the greenback, dipping below 1.25 on Friday for the first time since July 2010. Treasury yieldswere slightly higher at the long end but still in a new lower range. The 10-year was yielding 1.747 Friday.

Even with the attention on Europe, the jobs report is the big number to watch. Citigroup economist Steven Wieting expects to see just 135,000 nonfarm payrolls were added in May, up from April’s 115,000. “This is still the payback period,” said Wieting, referring to the impact of an unseasonably warm winter which gave an extra boost to hiring in the beginning of the year.

Wieting said the jobless-claims data are improving, and the employment numbers should as well in coming months. For the year, as a whole, he expects to see nonfarm payrolls growing by an average 175,000.

Consumer confidence is reported Tuesday morning and it follows a surprise gain in consumer sentiment Friday. Thomson Reuters/University of Michigan consumer sentiment rose to a four year high of 79.3 form 76.4, above the early May reading of 77.4.

”Consumer confidence is better than investor confidence,” said Stuart Freeman, chief equity strategist at Wells Fargo Advisors. “… For a long time, the market was better than the consumer and now consumers are moving ahead. When you have that, it ends up benefiting the market moving forward.”

Freeman said a stronger consumer could help corporate earnings. “Our work suggests confidence will continue lifting through the end of the year,” he said. “We think by the end of the year, we’ll see a very modest p/e expansion That’s how we got to a 1400/1450 number (on the S&P) by year end.”

What to Watch

Monday

Memorial Day Holiday

U.S. markets closed

Tuesday

0900 am S&P/Case-Shiller home prices

1000 am Consumer confidence

1030 am Dallas Fed survey

Wednesday

1000 am Pending home sales

Thursday

Chain stores sales

0815 am ADP employment

0830 am Initial jobless claims

0830 am Real GDP Q1 (second)

0945 am Chicago PMI

1100 am Kansas City Fed survey

Friday

May auto sales

0830 am Employment report (May)

0830 am Personal Income

1000 am ISM manufacturing

1000 am Construction spending

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