Focus on Jackson Hole
Markets still have no greater clarity on when the Federal Reserve may begin to curtail its $85 billion in monthly bond purchases following Friday's economic data. Sales of new single-family homes fell 13.4 percent to a 394,000 annual rate in July, their lowest level in nine months.
"We've had a strong run in housing like we've had in the stock market and some correction was inevitable in the face of the spike in mortgage rates," Dan Greenhaus of BTIG said.
Home builder stocks slumped after the data.
On Thursday, global manufacturing data painted a more encouraging picture of the world economy.
With the data mixed, Fed officials speaking with CNBC from the annual central bank conference in Jackson Hole, Wyo. also offered few clues as to what the Fed may do at its September meeting.
James Bullard of the St. Louis Fed, meanwhile, told CNBC the central bank should take its time. "Inflation is running low, you've got mixed data on the economy, so I'd be cautious and I wouldn't want to pre-judge the meeting," he said.
Atlanta Fed president Dennis Lockhart and San Francisco Fed president John Williams told CNBC that the Fed's actions will depend on the incoming economic data. "Any tapering I think we would do would be in gradual steps over time," Williams said.
(Read more: Fed's Lockhart: I could get comfortable with a move in September of some kind)