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.
Shares of Michael Kors (KORS - Get Report) 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
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