U.S. stocks declined on Monday, extending a two-week slide, as worries about the falling price of oil took hold before the start of quarterly earnings.
"We had a great run last year and a little bit of indigestion now based upon the decline in energy prices and the perceived impact on fourth-quarter earnings," Phil Orlando, equity market strategist at Federated Investors, said.
Oilfield-services provider Schlumberger declined after Goldman Sachs Group downgraded its shares to neutral from buy, while also cutting its outlook for benchmark oil prices.
"Goldman's negative outlook on oil is putting oil on its knees; we're at a new low here for the year," Peter Cardillo, chief market economist at Rockwell Global Capital, said.
Bristol-Myers Squibb jumped after the drug developer reported upbeat results on a potential treatment for a common form of lung cancer; Lululemon Athletica rose after the maker of yoga clothes hiked its outlook for fourth-quarter revenue and profit; SanDisk dropped after the supplier of memory chips for Apple's phones projected lower quarterly revenue than previously forecast; Tiffany tumbled after the upscale jeweler cut its full-year earnings outlook.
NPS Pharmaceuticals surged after Shire said it would pay about $5.2 billion to purchase the developer of medicines to treat rare disease; Roche Holding said it would pay more than $ billion for a majority stake in genomic-test maker Foundation Medicine.