Investing.com - U.S. stocks edged lower on Monday as investors applauded an upbeat factory gauge and sold energy companies on concerns that oil prices will stay low for the foreseeable future.
At the close of U.S. trading, the Dow 30 fell 0.14%, the S&P 500 index fell 0.01%, while the NASDAQ Composite index rose 0.18%.
The CBOE Volatility Index index, which measures the outlook for market volatility, was up 4.99% at 14.73.
The Institute of Supply Management reported earlier that its manufacturing purchasing managers' index rose to 59.0 in October from 56.6 in September. Analysts had expected the index to decline to 56.2 in October, and the surprise uptick drew applause in Wall Street earlier on hopes for more robust top and bottom lines to come with an improving economy.
On Friday the Thomson Reuters/University of Michigan final consumer sentiment index rose to a seven-year high of 86.9 in October from 86.4 in September. Analysts had expected the index to remain unchanged.
Also on Friday, industry data showed that the Chicago purchasing managers' index rose to a three-and-a-half year high of 66.2 in October from 60.5 in September, confounding expectations for a reading of 60.0.
Still, lower oil prices pressured down energy and energy-related stocks.
Despite the otherwise bullish effects upbeat U.S. data would have on oil due to prospects for rising demand for fuel and energy, a stronger dollar continues to punish the commodity as the economy improves.
A stronger greenback makes oil a less attractive commodity on dollar-denominated exchanges, especially in the eyes of investors holding other currencies.
OPEC countries are due to meet later this month, though expectations remain firm the cartel won't trim output to boost prices, with the logic being that allowing oil to fall further will prompt U.S. hydraulic fracking operations to hold off on production and stem the flow of oil into the global market.
In corporate news, French advertising company, Publicis Groupe SA (PARIS:PUBP) said it would pay $3.7 billion to buy Sapient Corporation (NASDAQ:SAPE), while medical testing giant Laboratory Corporation of America (NYSE:LH) announced plans to buy medical research supplier Covance Inc (NYSE:CVD) for $6.1 billion.
Leading Dow Jones Industrial Average performers included Merck & Company Inc (NYSE:MRK), up 1.68%, Microsoft Corporation (NASDAQ:MSFT), up 1.03%, and American Express Company (NYSE:AXP), up 0.99%.
The Dow Jones Industrial Average's worst performers included Chevron Corporation (NYSE:CVX), down 2.68%, Exxon Mobil Corporation (NYSE:XOM), down 1.54%, and Home Depot Inc (NYSE:HD), down 1.48%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 0.99%, France's CAC 40 fell 0.92%, while Germany's DAX fell 0.81%. Meanwhile, in the U.K. the FTSE 100 fell 0.89%.
On Tuesday, investors will track data on U.S. factory orders as well as the result of U.S. congressional elections.