Stocks set to take cue from Europe events Kevin Caron, Stifel Nicolaus market strategist and Kevin Ferry, Cronus Futures Management, discuss Europe's continued debt contagion and the impact on U.S. stocks. Investors are continuing to digest a bailout plan for Spanish banks. Stocks look set to rebound from Monday's late-day equities sell-off, but trading was expected to be volatile throughout the session, with trading volumes light and Wall Street taking its cue from Europe. On Monday, the first trading day after the Spain bank aid package was announced, shares rallied early in the session before steadily losing ground throughout the session, ending about 1 percent lower. While the plan did ease some concerns about the region, the June 17 election in Greece is still viewed as a major headwind that could result in the country leaving the euro zone. European shares were higher, led by defensive names. U.S. equities have been closely correlated to developments in Europe's financial crisis on concerns about how it might impact global growth prospects. In addition, there have been few domestic factors to serve as possible catalysts. Recent U.S. economic indicators, most notably the May payroll report, have pointed to anemic growth, while data from China has also been sluggish. The S&P 500 is down 7 percent in the second quarter. Financial, material and energy shares are seen by analysts as continuing to be among the most volatile, with the three closely tied to the pace of economic growth and demand. Also influencing financials, JPMorgan Chase & Co has hired an ex-Goldman Sachs energy trader to expand its customer flow business in Asia amid tightening regulation over proprietary trading, a source close to the matter said. According to a report in the Wall Street Journal, some JPMorgan executives and directors were alerted to risky practices by a team of London-based traders two years before botched bets cost the bank over $2 billion. Economic indicators on tap for Tuesday include May federal budget data.