Stocks fell on Monday as better-than-expected data on consumer spending failed to ease renewed caution about the economy.
Spending edged up 0.2 percent in May after being flat in April, even as savings touched their highest level in eight months, the Commerce Department said.
There is the increased level of caution, fear. Investors need see some solid evidence that there is an improvement coming, especially with the continuing European sovereign debt concerns, said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York. The key monthly jobs report is due out on Friday.
Materials and energy stocks were among the top decliners on the S&P 500 as crude oil futures fell 1 percent on worries about the impact on supply from tropical storm Alex.
The S&P energy index <.GSPE> was down 0.6 percent, and the S&P materials index <.GSPM> was off 1 percent.
The Dow Jones industrial average <.DJI> was down 11.41 points, or 0.11 percent, at 10,132.40. The Standard & Poor's 500 Index <.SPX> was down 1.82 points, or 0.17 percent, at 1,074.94. The Nasdaq Composite Index <.IXIC> was down 5.88 points, or 0.26 percent, at 2,217.60.
At the Group of 20 nations summit in Toronto over the weekend, leaders agreed to take divergent paths as they seek to trim budget deficits while ensuring the global economic recovery remained intact.
The G20 leaders also softened a 2012 deadline for banks to build up higher levels of capital and liquidity. Still, the G20 messages were not enough to boost confidence of investors.
The headlines read well from the G20, and it is certainly a step in the right direction. But it is basically a goodwill event, and we are not going to see a major impact (on stocks), said Peter Cardillo, chief market economics at Avalon Partners in New York.
BP U.S.-listed shares rose 2.5 percent to $27.69 after the beleaguered oil giant was forced to defend its chief executive on Monday. Russia's deputy prime minister said he expected the CEO, Tony Hayward, to resign soon.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)