Stocks set for tepid open

NEW YORK (CNNMoney.com) -- U.S. stocks are expected to open lower Monday, as investors expressed caution following a rally that has pushed stocks to nine-month highs.

"The markets are ripe for a pullback; there's no question about that," said Peter Cardillo, chief market economist for Avalon Partners, noting that stock indexes are "at the highs for the year."

At 6:57 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were all slightly lower.

Futures measure current index values against their perceived future performance and offer an indication of how markets may open when trading begins.

Economy: No major economic reports are on tap Monday, giving investors time to digest the recent rally.

Stocks have gotten a boost lately from upbeat economic news. On Friday, the July jobs report from the U.S. Labor Department showed the smallest number of job cuts in nearly a year.

Cardillo said that trading Monday will probably be "sideways," given the lack of market-movers. He said that trading will be more volatile later in the week, when investors will have fresh economic data to react to.

Earnings: Warren Buffett's Berkshire Hathaway (BRK) posted a 14% rise in quarterly net income after U.S. markets closed Friday.

World markets: Asian stocks finished the session higher. Japan's Nikkei added 1% and the Hang Seng in Hong Kong rallied nearly 3%. Major markets in Europe were lower in morning trading.

Money and oil: The dollar edged up versus the British pound, but eased against the euro and the yen. Oil prices slipped 17 cents a barrel to $70.76.