MARKET SNAPSHOT: U.S. Stocks Fall; S&P 500 Dips Below 2,000

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks moved lower on Monday as investors turned cautious after five straight weeks of gains that sent the main benchmark to record highs.

Monday lived up to its Merger Monday title with a few deals were grabbing attention. On the economic news front, consumer-credit data for July is due at 3 p.m. Eastern Time, but otherwise the data calendar remains largely quiet until Friday's report on retail sales.

The S&P 500 (SPX) lost 12 points, or 0.5%, to drop below 2,000 level at 1,995.99. The Dow Jones Industrial Average (DJI) dropped 42 points, or 0.2%, to 17,096.04. The Nasdaq Composite (RIXF) shed 8 points, or 0.2%, to 4,575.07.

"U.S. indexes have seen rises over the past 5 weeks -- now having digested news that recent China trade data is weak, and that Japanese GDP (gross domestic product) has shrunk at its fastest pace in over 5 years -- the reality is that global economies aren't where they should be," said Brenda Kelly, chief strategist at IG, in emailed comments.

Investors shrugged off Friday's weaker-than-expected U.S. jobs report, and the S&P 500 index (SPX) and Dow industrials (DJU4) logged fifth-straight weekly gains. Also read: Stock-picking gains traction as volatility looms

Stocks to watch: Multimedia Games (MGAM) shares surged 29% after the electronic gaming company announced a $1.2 billion deal to be acquired by Global Cash Access Holdings Inc.(GCA).

Meanwhile, GE (GE) is selling its appliances unit for $3.3 billion to Sweden's Electrolux. GE has been trying to exit its century-old appliance business for several years. GE shares were little changed, while Electrolux shares jumped 8%, making it the biggest mover for the Stoxx Europe 600 .

Shares in Boeing Company (BA) rose 1.6% after the aircraft maker confirmed an order to provide 100 of its 737 MAX airplanes to Ryanair (RYAAY) .

Yahoo! Inc. (YHOO) shares were up 2.8% as China's largest e-commerce Alibaba Group said it would seek $66 per share, hoping to raise $24.3 billion in an IPO. Yahoo own 24% of Alibaba.

Campbell Soup Co. (CPB) shares fell 2.3% after the maker of soups posted a disappointing profit outlook. Also read: See the day's notable stock moves

Pound, oil on the wane: European stocks ended lower after a weekend poll showed pro-Scottish independence voters in the lead ahead of a referendum Sept. 18. The London FTSE 100 index slid 0.3%. The pound(GBPUSD) sank against the dollar to the lowest level since November.

China reported a surprise fall in imports and a widening trade deficit, and Hong Kong shares slipped.

Brent crude for October fell below $100 a barrel on the weak China trade data. Gold prices (GCZ4) fell $11 to 1,255.7.

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