Stocks cut losses on Monday and the Dow briefly turned positive on gains from McDonald's after the fast-food operator reported July sales results, offsetting declines in retailers such as Wal-Mart .

The Dow Jones industrial average <.DJI> dropped 8.69 points, or 0.09 percent, to 9,361.38. The Standard & Poor's 500 Index <.SPX> fell 1.20 points, or 0.12 percent, to 1,009.28. The Nasdaq Composite Index <.IXIC> shed 1.25 points, or 0.06 percent, to 1,999.00.

(Reporting by Chuck Mikolajczak; Editing by Dan Grebler)