Concerns over Greece also returned amid worries that the IMF may no longer provide financial aid to the debt-ridden nation, according to a report in Germany's Der Spiegel, sparking fears the country could run out of money as early as September. And Greece's Prime Minister Antonis Samaras warned that the country was facing a new “Great Depression.”
Brent crude fell below $103 a barrel, while gold prices dropped almost 1 percent.
JPMorgan rebounded following news that CEO Jamie Dimon bought 500,000 shares last week for $17.1 million. But other financials including Goldman Sachs and Citigroup were lower.
Among earnings, McDonald's dropped after the fast-food giant reported quarterly results that missed expectations. The earnings miss was the Dow component's first since 2004 when it missed estimates by a penny.
Halliburton rebounded after the oilfield services company posted a better-than-expected profit, thanks to higher international drilling activity.
Meanwhile, Hasbro gained after the toymaker reported better-than-expected earnings on better inventory management and market share gains.
Texas Instruments and Baidu are slated to report earnings after the closing bell.
Homebuilders rallied after Goldman Sachs added MDC Holdings to its "conviction buy" list, boosted KBHome to "buy" and Ryland to "neutral." However, NVR was lowered to "sell."
On the M&A front, GenOn Energy surged after NRG Energy said it will buy the power producer for $1.7 billion in stock.
Peet'sCoffee & Tea soared after the specialty coffee roaster and retailer said it struck a deal with Joh. A. Benckiser for about $1 billion.
Canada's Nexen skyrocketed after China's oil producer CNOOC agreed to buy the company in a deal worth about $15 billion.
And RailAmerica jumped after Genesee & Wyoming said it will buy the railroad operator for $1.39 billion in cash.
Wet Seal plunged after the teen retailer fired its CEO Susan McGallawithout naming a replacement amid declining sales.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
TUESDAY: FHFA home price index, Richmond Fed manufacturing index, 2-yr note auction; Earnings from AT&T, DuPont, UPS, UnderArmour, AK Steel, Apple, Aflac, Broadcom
WEDNESDAY: Weekly mortgage apps, new home sales, oil inventories, 5-yr note auction, USDA food prices outlook; Earnings from Arcelor Mittal, Boeing, Bristol-Myers, Caterpillar, ConocoPhillips, Ford, GlaxoSmithKline, PepsiCo, Visa, Symantec, Western Digital, WholeFoods, Zynga
THURSDAY: Durable goods orders, jobless claims, pending home sales, 7-yr note auction, CFTC emergency meeting; Earnings from AstraZeneca, ExxonMobil, 3M, Credit Suisse, Dow Chemical, Pulte, Sprint, Amazon.com, Amgen, Facebook, Expedia, Starbucks
FRIDAY: GDP, consumer sentiment, summer Olympics start, 100 days to election; Earnings from Chevron, Merck, Barclays, DR Horton
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