U.S. stocks fall as markets eye Fed, E.Z. talks; Dow Jones down 0.15%

Investing.com - U.S. stocks opened lower on Monday, as investors remained cautious due to dampened hopes for fresh action by the European Central Bank to cap borrowing costs and ahead of the minutes of the Federal Reserve’s latest policy meeting.

During early U.S. trade, the Dow Jones Industrial Average fell 0.15%, the S&P 500 index slipped 0.12%, while the Nasdaq Composite index edged 0.09% lower.

German magazine Der Spiegel reported Sunday that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.

Responding to the report, the EBC said it was "absolutely misleading" to report on decisions that have not yet been taken, and added that it would act "strictly within its mandate".

Meanwhile, investors were looking ahead to a series of euro zone meetings later in the week to discuss measures to ease the debt crisis.

Market participants were also anticipating the minutes of the Fed’s August policy meeting later in the week, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.

In earnings news, Lowe’s saw shares plunge 4.81% after the home-improvement chain posted quarterly results that missed expectations and slashed its earnings outlook for the fiscal year.

Also on the downside, Best Buy dove 7.45% after naming Hubert Joly, former CEO of hospitality and travel company Carlson, as its new chief executive, with hopes of turning around the struggling consumer-electronics retailer.

The company also said founder Richard Schulze rejected an offer from the board to conduct due diligence in connection with his proposal to take the company private at a valuation of more than USD8 billion. Separately, an earnings report was expected on Tuesday.

Facebook also contributed to losses, plummeting 1.47%, after the social media giant last week unlocked 271.1 million shares, in the first of five insider sale restrictions scheduled in its first year as a public company.

Elsewhere, Aetna, the third-biggest U.S. health plan, surged 4.68% amid reports it agreed to buy Coventry Health Care for about USD5.6 billion to increase its share of government business following U.S. President Barack Obama’s health-care overhaul.

Shares in Sirius XM Radio also rallied, gaining 2.54% after Liberty Media said in a filing to the Federal Communications Commission at the end of last week that it can take control of the radio provider within 60 days of receiving approval from the regulator.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 edged down 0.08%, France’s CAC 40 fell 0.23%, Germany's DAX inched 0.09% higher, while Britain's FTSE 100 retreated 0.26%.

During the Asian trading session, Hong Kong's Hang Seng Index eased 0.06%, while Japan’s Nikkei 225 Index added 0.09%.

Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.