U.S. stocks closed down on Monday despite encouraging economic data as the Hong Kong protests weighed on global markets.
"It seems we're willing to ignore what is going on domestically and pay attention to the global macro newsflow," Art Hogan, chief market strategist at Wunderlich Securities, said.
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The Dow and S&P regained ground after falling about 1 percent in the open. In late-morning trade, the Nasdaq also reversed losses to turn positive briefly before trading in the red again.
"Actually I think it's pretty impressive that the market has come back," JJ Kinahan, chief derivatives strategist for TD Ameritrade, said. "One thing to focus on is, although the S&Ps have rallied pretty [well], the bonds have not."
The benchmark 10-year Treasury note yield gained one basis point to 2.49 percent.
Stocks did not move much in reaction to a 1 percent decline in pending home sales for August, and futures were little changed after reports that personal income rose 0.3 percent in August, as expected.
"I expect investors to concentrate on the economic data before we move into earnings season," Peter Cardillo, chief market economist at Rockwell Global Capital, said.
Scheduled tomorrow are purchasing managers' index and consumer confidence, ahead of Friday's important jobs number.
We "need a strong PMI and easing of tension in Hong Kong to turn things around," Jack Ablin, chief investment officer at Harris Private Bank, said.
Earlier, protests in Hong Kong had rattled global markets and U.S. stocks about percent lower, but most analysts said the situation would not have a long-lasting impact on markets.
"I think this is a continuation of a market that is realizing how much the Fed's QE has propelled it" rather than fundamentals, Quincy Krosby, market strategist with Prudential Financial, said. The market is "getting ready to find the equilibrium between the fundamentals and the Fed."
Kim Forrest, senior equity analyst at Fort Pitt Capital in Pittsburgh, also did not think that the Hong Kong protests were the sole driver behind the market.
"I do think we're going to be heading to that volatile time," she said. The Fed is "clear on what it thinks it's going to do. Investors may not agree."