Investors started the week on a cautious note, pulling the Standard & Poor’s 500 index down from the five-year high it reached Friday.
The move lower on Monday is likely the result of traders taking some winnings off the table after the stock market’s surge last week, said Sam Stovall, chief equity strategist at S&P Capital IQ.
Investors are also preparing for corporate America’s seasonal parade of earnings reports, which starts today.
“You can summarize it as profit-taking and preparation,” Stovall said. “Investors are digesting some of those gains from last week and positioning themselves so they’re not too far extended if fourth-quarter earnings slip a bit.”