Utilities closed up 0.9 percent as the greatest advancer in the S&P, while energy fell 1.08 percent and materials closed down 0.88 percent as the only decliners. Both sectors rallied last week as the best performers in the S&P during that time.
"There's really not much going on today. It's really the calm before the earnings storm," said Peter Boockvar, chief market analyst at The Lindsey Group. "I've got my eye on commodity prices."
"The market's extremely overbought. I expect a big pause here," he said.
On Friday, the S&P 500 closed up 3.26 percent for the week, its best week for 2015. The Dow Jones industrial average closed up 3.7 percent for the week, its second-best week of the year so far.
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Oil settled down $2.53, or 5.10 percent, at $47.10 a barrel, giving back more than half of last week's rally of nearly 9 percent. Monday's decline was the worst daily decline since Sept. 1. Brent also declined to hold just above $50 a barrel.
Chevron and IBM were the greatest weights on the Dow Jones industrial average.
"You've got a relatively catalyst-free (session) and I think we'll take our cues from the commodity market," said Art Hogan, chief market strategist at Wunderlich Securities.
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Trade volume was one of the lightest for 2015 due to Columbus Day. The U.S. bond market was closed Monday for the holiday.
The U.S. dollar traded mildly lower against major world currencies, with the euro above $1.13 and the yen at 120.00 yen against the greenback.
"I think what we're seeing is a continuation of some of the trends from last week," said David Kelly, chief global strategist at JPMorgan Funds. "A sense of calm with China a little more stable."
In Asia, the Shanghai Composite surged more than 3 percent and the Hang Seng closed up 1.2 percent. Japanese stock markets were closed for a holiday. European stocks closed mixed, under some pressure from declines in oil prices.
"I wouldn't put too much into this (U.S. trading session) because it's holiday mode trading," said Peter Cardillo, chief market economist at Rockwell Global Capital. "It's all about earnings tomorrow."
JPMorgan Chase is scheduled to report after the close Tuesday, beginning a heavy week of earnings reports from financials, which includes Bank of America and Wells Fargo on Wednesday, and Citigroup and Goldman Sachs on Thursday.
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Earnings estimates for the financial sector are down to growth of 3.0 percent versus expectations of 6.1 percent growth two weeks ago, according to S&P Capital IQ.
"It's been super slow for us. Real quiet," said Phil Quartuccio, CEO of Illustro Trading. "I think the bigger news today was Dell, which should rattle the tech industry a little bit. I think Dell's making a really bold move with the number they're paying."
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Dell announced a $67 billion cash and stock deal with MSD Partners and Silver Lake to buy cloud computing firm EMC.
Eli Lilly fell about 8 percent on news the firm stopped a late-stage trial of its closely watched cholesterol treatment after the drug proved ineffective. Shares of Merck, which is developing a similar medicine, also declined.
Investors also eyed more comments from Federal Reserve speakers. No major economic data was expected.
"I think typically what people are looking for are some hints on when they might raise rates. They keep saying they want to raise this year. I think December is still certainly a possibility," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
Over the weekend, Federal Reserve Vice Chairman Stanley Fischer said U.S. Federal Reserve policymakers are still likely to raise interest rates this year but that is "an expectation, not a commitment," and could change if the global economy pushes the U.S. economy further off course.
On Monday, the Atlanta Fed's Dennis Lockhart said in a Reuters report there could be sufficient economic data for the Fed to consider a rate hike at their meeting later in October but there will be a lot more data on hand in time for the December meeting.
Chicago Fed President Charles Evans reiterated in prepared remarks his view that rate increases should be much more gradual than what most U.S. central bankers anticipate.
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Fed board member Lael Brainard was scheduled to speak later on Monday. On Tuesday, St. Louis Fed President James Bullard is due to present remarks, while the New York Fed's William Dudley speaks Thursday.
The Fed's September meeting minutes released this past Thursday indicated policymakers were further from raising rates last month than many thought, as Federal Open Market Committee members were concerned about reaching their inflation target and the impact of a global economic slowdown. Fed speakers have generally maintained the central bank could still raise rates this year.