NEW YORK (Reuters) - Stocks fell on Monday as traders cashed in recent gains that lifted the S&P 500 to a five-year high on Friday and awaited Tuesday's start of the fourth-quarter earnings season.
Last week was the best for U.S. stocks in more than a year as a budget deal and economic data boosted investor confidence.
Investors will likely turn their attention to the fourth-quarter earnings season that kicks off this week. Earnings are expected to be only slightly better than the third-quarter's lackluster results and analysts' current estimates are down sharply from what they were in October.
"We have a cautious market entering fourth-quarter earnings season," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. "I think it's going to be a disappointing one this time around."
Financial shares will be in focus a day after global regulators known as the Basel Committee gave banks four more years and greater flexibility to build up cash buffers, scaling back moves that aimed to help prevent another financial crisis.
"Basel giving banks four more years to get their act together will be good" for stocks, Cardillo said.
Bank of America
The bank also entered into agreements with Nationstar Mortgage Holdings
Nationstar rose 16.8 percent to $38.80 and Walter Investment added 7 percent to $47.13.
The Dow Jones industrial average <.dji> fell 63.59 points, or 0.47 percent, to 13,371.62. The S&P 500 <.spx> dropped 6.53 points, or 0.45 percent, to 1,459.94. The Nasdaq Composite <.ixic> lost 12.56 points, or 0.41 percent, to 3,089.09.
Walt Disney Co
Video-streaming service Netflix Inc
Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised its rating on the stock. Shares were up 3.6 percent at $268.50.
Roche's
Major U.S. technology companies could miss estimates for fourth-quarter earnings as budget worries likely led some corporate clients to tighten their belts last month.
(Reporting by Rodrigo Campos; Editing by Kenneth Barry)
Wall Street falls after five-year high, earnings in focus
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Wall Street falls after five-year high, earnings in focus