U.S. stocks held little moved on Monday, with the Dow industrials coming back from a one-month low, as investors looked to economic reports, earnings and the Federal Reserve's mid-week policy decision.
"The recent trading pattern is when we go down, we tend to come back. Every sell off has been a buying opportunity," said JJ Kinahan, chief strategist at TD Ameritrade.
Dollar Tree rose after saying it would acquire rival Family Dollar Stores; Zillow fell after saying it would acquire rival online real estate site Trulia for $3.5 billion in cash and stock; AcelRx Pharmaceuticals declined after failing to win approval from the Food and Drug Administration for its pain treatment Zalviso; Tesla Motors jumped after the Nikkei newspaper reported the electric-car maker and Panasonic had reached an accord for the latter to invest in a U.S. battery factory.
"We had some recent weakness in economic data, most notably in housing numbers, and also geopolitical risks are causing some problems for the markets in general," said James Liu, global market strategist at J.P. Morgan Funds.
That said, "we still still like stocks for the rest of the year; the economy is going to continue to improve, and earnings growth is actually looking quite strong. About 60 percent of the S&P 500 have reported, and operating earnings growth is about 10 percent year over year," Liu said.
"It's a buy-the-dip market for U.S. stocks," Liu added.