U.S. stocks ended little changed on Monday, with the Dow Jones Industrial Average halting its longest win streak this year.
"The market is a little overbought, but it's had a pretty good run here. The market got a big support last week from Janet Yellen," said Bruce Bittles, chief investment strategist at RW Baird, referring to comments by the Federal Reserve chair, who downplayed concerns about asset-price bubbles and inflation.
"I suspect the markets aren't going to get into any significant trouble unless the Fed has to rethink policy," Bittles added.
Micros Systems gained after Oracle offered to buy the maker of software for restaurants and hotels for $5.3 billion in cash. Integrys Energy Group jumped after Wisconsin Energy said it would pay $5.7 billion to acquire the company. Lululemon Athletica climbed as the founder of the yoga clothing retailer reportedly explored options including a proxy fight or joining a private equity firm in a buyout.
The National Association of Realtors reported the sale of previously-owned homes rose 4.9 percent in May to an annualized rate of 4.9 million, versus a 1.5 percent gain the month before.
"The housing numbers this morning were very good, you may have had a bit of buy the rumor, sell the news. The rally last week might have been in anticipation of this good economic data" that the market is expecting this week, said Phil Orlando, equity market strategist at Federated Investors.
"We're still sitting up here at 1,960 or so," Orlando added of the S&P 500, which finished at 1,962.87, its highest close, on Friday.
U.S. Secretary of State John Kerry traveled to Baghdad on Monday, where he pushed the Iraqi prime minister to form a more inclusive government as it attempts to stem a Sunni insurgency across much of the northern and western parts of the country.