This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stock Market Today: Stocks Fluctuate After Last Week's Selloff

NEW YORK (TheStreet) -- U.S. stock indices were mostly flat late Monday morning, failing to hold onto early gains as investors suspected that markets were long overdue for a correction.

The Dow Jones Industrial Average was down 0.12% to 16,472.95. The S&P 500 was flat at 1,926.19. The Nasdaq was trading sideways at 4,354.27.

Read More: Aug. 4 Premarket Briefing: 10 Things You Should Know

Shares of Michael Kors (KORS) were plunging 7.53% to $75.67, losing steam after surging more than 12.5% in premarket trading. The company said that revenue jumped 43.4% to $919.2 million vs. the consensus estimate of $851.7 million on popular demand for its handbags and accessories. Steeper discounts, however, cut into margins. Michael Kors' earnings increased 49.2% to 91 cents a share, beating the average analyst's estimate of 81 cents a share.

On average, a correction of 5% or more usually occurs every 71 days or 3.5 months. It's already been six months since the broader market last saw a 5+% correction, according to Sterne Agee data. The average magnitude of 5% or more corrections has been a pullback of 12.19% over a 41-trading day period. Carter Worth, chief market technician at Sterne Agee, said he's looking for an impending "garden variety" correction that will be very healthy for the market; the market has reached a point where the risk-reward ratio has become "asymmetrical," where the upside is limited and the downside is unknown and potentially outsized.

"The market has been excessively good the past 18 months," Worth explained. "Corrections will expunge complacency ... correct excess."

Read More: Stock Market Today: Another False Start to Long-Awaited Correction

Stocks to watch Monday also include Evercore Partners (EVR), Walmart (WMT), HSBC (HSBC), and Berkshire Hathaway (BRK.A). Investment bank Evercore Partners reached an agreement to buy International Strategy & Investment Group, a financial research firm. Evercore was down 2.71% to $48.77. Walmart was off 0.52% to $73.16 after launching a feature on its Web site that will show shoppers more products they may like based on their previous purchases. HSBC, which operates in 74 countries, said profit in the first half of 2014 fell 5.4% to $9.46 billion amid continuing concerns about economic growth around the world and rising geopolitical tensions. The stock was rising 1.04% to $53.43. Wall Street firms led by Berkshire Hathaway, the conglomerate run by Warren Buffett, reported on Friday better-than-expected second-quarter earnings as sales growth returned, confirming a strengthening recovery in the U.S. economy. Berkshire shares were up 1.72%.

Sixty-six S&P 500 companies are expected to report this week, including 11 consumer discretionary companies and 10 energy companies. This week's calendar will also highlight the Markit PMI services index for July, June factory orders and the ISM non-manufacturing survey for July on Tuesday, and second-quarter nonfarm business productivity figures on Friday.

Read More: European Stocks Nudge Higher on Rescue of Portugal Bank

-- By Andrea Tse in New York

Follow @AndreaTTse

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs