By Sue Chang, MarketWatch , Chris Matthews

S&P 500 slides for fourth consecutive day

U.S. stocks closed mostly lower Monday, with the S&P 500 dropping for a fourth day in a row, as investors braced for a deluge of earnings against the backdrop of higher interest rates and concerns about global growth.

How did major indexes fare?

The Dow Jones Industrial Average dropped 126.93 points, or 0.5%, to end at 25,317.41, while the S&P 500 shed 11.90 points, or 0.4%, to close at 2,755.88. The Nasdaq Composite Index , however, rose 19.60 points, or 0.3% to finish at 7,468.63.

Don't miss: Watch out for 'dead cat bounce' in stocks because there's more pain ahead: Morgan Stanley's Wilson (http://www.marketwatch.com/story/watch-out-for-dead-cat-bounce-in-stocks-because-theres-more-pain-ahead-morgan-stanleys-wilson-2018-10-22)

What drove the market?

Investors will be wading through a flood of earnings this week as the third-quarter reporting season hits its stride. More than 150 companies are on tap to announce financial results.

Increased volatility has left investors nervous in what's been a rough October. The S&P 500 is down more than 5% in the month-to-date, while the Dow is off 4.3% and the Nasdaq has shed more than 7%. That has left the S&P 500 roughly 6% off its record high set in late September.

Read: This troubling trend may wreak havoc on the stock market, analysts warn (http://www.marketwatch.com/story/this-troubling-trend-may-wreak-havoc-on-the-stock-market-analysts-warn-2018-10-21)

Aside from earnings, worries about the impact of higher interest rates on the economy linger with the Federal Reserve indicating that it is likely to tighten monetary policy again by the end of the year.

What were analysts saying?

Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management, told MarketWatch that "we have seen the narrative begin to shift," to a more cautious one, citing fears over slowing global growth and whether U.S. companies can maintain their recent strong earnings growth in the quarters to come.

"Investors are anxious for more information," he said, adding that while he believes the current backdrop is supportive of stocks, it will all some down to earnings. "With so many bellwether names across so many industries reporting this week, things should get interesting."

"The rapid decline in stocks over the past two weeks, especially in large U.S. growth names [and] technology will take some time to repair," said Paul Nolte, portfolio manager at Kingsview Asset Management LLC, in a note to clients. "We have raised some cash over the past few weeks and are holding tight for now, but when the dust begins to settle we will move back into more conservative parts of the markets, which have been doing very well of late."

What stocks were in focus?

Shares of Hasbro Inc.(HAS) fell 3.1% after the toy maker missed third-quarter profit and revenue expectations (http://www.marketwatch.com/story/hasbros-stock-set-for-selloff-after-profit-and-revenue-fall-miss-expectations-2018-10-22) and announced a restructuring that will cut jobs.

Shares of Kimberly-Clark Corp. (KMB) declined 3.5% after posting lower profits and announcing a management shuffle (http://www.marketwatch.com/story/kimberly-clark-names-new-ceo-as-earnings-fall-2018-10-22).

(http://www.marketwatch.com/story/kimberly-clark-names-new-ceo-as-earnings-fall-2018-10-22)Energy services company Halliburton Co.(HAL) topped third-quarter profit (http://www.marketwatch.com/story/halliburton-beats-estimates-despite-weak-demand-2018-10-22) and revenue estimates but shares slid 3%.

Shares of Advanced Micro Devices Inc. (AMD) gained 5.8% ahead of its earnings announcement Wednesday (http://www.marketwatch.com/story/amd-earnings-its-all-about-trade-wars-and-bleeding-market-share-from-intel-2018-10-20). The chip maker has posted an impressive 145% return year-to-date, but pulled back in recent days over questions surrounding trade policy and how much more market share the firm can gain from rivals.

Shares of American Railcar Industries Inc.(ARII) soared 51% after the company announced said it would be acquired by a fund managed by investment firm ITE Managment LP. Under the terms of the deal, valued at $1.75 billion, ITE will pay $70 for each share of the company (http://www.marketwatch.com/story/american-railcar-to-by-bought-in-a-175-billion-deal-by-ite-giving-icahn-a-757-million-profit-2018-10-22).

What data were in focus?

In a light day on the economic calendar, the Chicago Fed National Activity Index decreased to +0.17 in September from +0.27 in August.

How were other markets trading?

Chinese stocks surged on reassuring comments by leaders and regulators (http://www.marketwatch.com/story/big-stock-rally-in-china-bolsters-markets-across-asia-2018-10-21) in the wake of last week's market rout and disappointing economic data. The Shanghai closed 4.1% higher, while the smaller Shenzhen Composite soared more than 5%.

Over the weekend, China President Xi Jinping emphasized China's support for the private sector, according to the Xinhua News Agency, following concerted moves Friday by Vice Premier Liu He, Xi's top economic official, and the head of the central bank and financial regulators to reassure investors.

European stock markets closed modestly lower (http://www.marketwatch.com/story/europe-picks-up-on-global-gains-with-italian-stocks-in-the-lead-2018-10-22), with the Stoxx Europe reversing course to finish in negative territory.

Oil futures bounced back from earlier weakness (http://www.marketwatch.com/story/oil-pauses-for-direction-as-traders-monitor-us-saudi-tensions-2018-10-22), while gold prices settled lower. The U.S. dollar traded higher.

--William Watts contributed to this article

(END) Dow Jones Newswires

October 22, 2018 16:36 ET (20:36 GMT)