The major averages stocks closed near session lows after initially attempting slight gains.
Jeremy Klein, chief market strategist at FBN Securities, said asset allocation on the last day of the month contributed to some selling pressure.
"A bad Chicago PMI is not going to alter the Fed whatsoever. The only thing that could alter the Fed is a bad jobs number," Klein said.
"Nothing really matters until Thursday's ECB decision and Friday's jobs report," he said.
Consumer stocks were among the laggards in the S&P 500, with health care trading more than 1 percent lower as the greatest decliner.
"I don't put a lot of stock into the reaction right now because I think investors are looking at Black Friday and Cyber Monday to see if consumers are spending ... or saving," said Paul Nolte, portfolio manager at Kingsview Asset Management.
The SPDR S&P Retail ETF (XRT) closed down about 2.2 percent, giving up the recovery of the last two weeks to close the month nearly 2.9 percent lower.
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"The consumer is spending money. They're just not spending it on things where people like me are looking," said Ike Boruchow, Wells Fargo, managing director, retailing/department stores and specialty softlines.
"The group's in a position where any sign of good news could be very well received but I don't know the likelihood that there's a ton of good news out there right now," he said.
Shares of Target closed down nearly 1.3 percent amid reports the retailer's website temporarily crashed due to high traffic. The stock lost 6 percent in November.
Check out CNBC's retail coverage here
Energy led S&P 500 advancers Monday but closed well off session highs after crude oil gave up intraday gains of more than 1.5 percent to settle down 6 cents, or 0.1 percent, at $41.65 a barrel. WTI crude lost 10.6 percent in November, its worst month since July.
The Organization of the Petroleum Exporting Countries meets Friday and is not expected to change its stance on letting the market set prices.
Nike was the greatest weight on the Dow Jones industrial average. Chevron and IBM contributed the most to gains.
Amazon fell 1.26 percent Monday but held a monthly gain of 6.2 percent.
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The November Chicago PMI came in at 48.7, in contraction territory and down from October's 56.2 print.
The pending home sales figure for October from the National Association of Realtors rose by just 0.2 percent, ending two straight months of declines but far below expectations for a 1.0 percent rebound, Reuters said.
In addition to Friday's key employment report, central banks will take center stage later in the week.
On Thursday, the European Central Bank is expected to expand its easing program and cut its already negative deposit rate.
Fed Chair Janet Yellen will address the Economic Club of Washington on Wednesday and testifies before the congressional Joint Economic Committee on Thursday.
"A very hectic week in terms of economic data, ECB, Yellen testimony," said Peter Cardillo, chief market economist at First Standard Financial. "I think the market is just going to do what it's been doing, which is inching its way higher."
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U.S. stocks ended narrowly mixed in light volume trade Friday, under some pressure from declines in Disney and oil prices as investors eyed Black Friday shopping results.
Treasury yields traded mixed, with the 2-year yield higher near 0.93 percent and the 10-year yield lower at 2.21 percent.
The U.S. dollar index held above 100, just below the 100.39 high of the year hit in March. The euro remained below $1.06 around lows not seen since April and the yen traded near 123.08 yen against the dollar.
Read MoreThe IMF, the SDR and the yuan explained
The U.S. dollar held relatively steady against the Chinese yuan after the International Monetary Fund confirmed Monday it will include China's yuan, or renminbi, in an exclusive group of currencies that make up the basket of the IMF's Special Drawing Rights (SDR). The change, which was widely expected, is set to take effect next October.
"I think this is positive for the currency. I think the inclusion will shift the holdings of reserve managers," said Jason Leinwand, managing director at Riverside Risk Advisors.