Ahead of the Bell: Dow futures are trading down 27 points and S&P futures are trading down 4 points as investors worry that a Greek exit from the euro zone might cause a domino effect, and drag other peripheral countries with it.  Greece's escalating crisis, and fears of contagion to other debt laden EU members, is rattling financial markets, after the ECB said it will temporarily stop lending to some Greek banks to limit risk.         

• On the economic calendar today, initial jobless claims will be out before the market opens and it is expected to be 365K, compared with 367K for the previous week.  Philadelphia Fed Survey for May will be out after the market opens and it is expected to be 10.0, versus 8.5 for April.  The conference board will release leading indicators for April after the opening bell and it is forecasted to be 0.1% compared with 0.3% for March.
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Markets closed down but spent much of the day in positive territory as investors digested positive U.S. housing data and after Germany’s Merkel and newly elected French President Hollande both said they want Greece to stay in the Euro zone.

Markets started to turn course after reports ran that the ECB has halted monetary policy operations to certain Greek banks – though it is unclear if there is just a position to freeze assets until the government accelerates the process of recapitalizing lenders.  Late this evening, International Monetary Fund Managing Director Christine Lagarde was reportedly made the comment that “the best outcome would be for Greece to agree to the bailout terms and stay in the Euro.

European and Asian markets fell as well today after investors sought safer places for assets as Greece’s financial and political situation remains under fire.  After a number of failed attempts to form a government...