After moving notably higher last week, stocks may move back to the downside in early trading on Monday. The major index futures are currently pointing to a moderately lower open for the markets, with the Dow futures down by 37 points.
Lingering concerns about the looming fiscal cliff may generate selling pressure as U.S. lawmakers get back to work following the Thanksgiving recess.
While leaders of both parties have called for compromise, the issues of taxes on the wealthy and entitlement reform are likely to remain major sticking points.
Peter Boockvar, managing director at Miller Tabak, said, "On the most pressing issue for the markets into year end, that of the tax and spending issues in the U.S., the Sunday morning talk shows didn't reveal that we're on the cusp of a deal as more horse trading will go on in the weeks to come."
Traders are also keeping an eye on developments in Europe, where finance ministers are holding another meeting regarding another round of financing for Greece.
A final agreement on providing more aid for Greece has been pushed back a number of times, and worries about another delay may weigh on the markets.
Some negative sentiment has also been generated by the results of elections in the Spanish region of Catalonia, which have raised concerns about Spain's ability to push through reforms.
Retailers may be in focus after the National Retail Federation said about 247 million shoppers visited retail stores this Black Friday weekend, up over 9 percent from last year.
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The average spending by a shopper also increased to $423 from $398. Total spending reached an estimated $59.1 billion, up 13 percent year-over-year.
With technology stocks helping to lead the way higher, U.S. stocks saw significant strength during trading on Friday. The substantial gains on the day extended the strong upward move seen earlier in the holiday-interrupted week.
The major averages saw further upside going into the close, ending the session near their best levels of the day. The Dow jumped 172.79 points or 1.4 percent to 13,009.68, the Nasdaq soared 40.30 points or 1.4 percent to 2,966.85 and the S&P 500 surged up 18.12 points or 1.3 percent to 1,409.15.
For the week, the major averages all posted notable gains. The Dow advanced by 3.3 percent, while the Nasdaq and the S&P 500 rose by 4 percent and 3.6 percent, respectively.
