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Nasdaq, S&P 500 retreat from record territory

Adam Shell, and Kevin McCoy
USAToday

Stocks kicked off the week lower Monday as the Nasdaq composite and the S&P 500 retreat from record territory.

The Dow Jones industrial average dropped 42.17 points, or 0.2%, to 18,037.97 and the Standard & Poor's 500 index fell 8.77 points, or 0.4%, to 2108.92. The Nasdaq composite index dropped 31.84 points, or 0.6%, to 5060.25.

The three benchmarks started the day in the black and stayed there practically all morning before turning negative.

The Nasdaq and Standard & Poor's 500 closed at records Friday, the first time both were at new highs since the peak of the dotcom bubble 15 years ago. The Nasdaq ended the session at 5092.08, while the S&P 500 ended up at 2117.69.

On the floor of the New York Stock Exchange.

Earnings season is still in full swing, with the world's most valuable company Apple (AAPL) reporting after the closing bell.

Expectations were high and Apple reported another record quarter as results easily beat Wall Street estimates. Shares rose 1.4% in after-hours trading after rising 1.8% in regular trading.

Burger King's parent company beat the Street as quarterly sales at the fast-food chain increased 9.6%. Restaurant Brands International (QSR), which also includes the Tim Hortons doughnuts-and-coffee chain, is 3% lower.

A three-way takeover battle continues as the board of generic drug maker Mylan (MYL) rejected rival Teva Pharmaceutical Industries' (TEVA) unsolicited merger bid, saying the $40.1 cash and stock offer "grossly undervalues" the company. Britain-based Mylan says it instead remains committed to its own pursuit of Ireland drugmaker Perrigo (PRGO).

On Wednesday, Wall Street will also get the latest from the Federal Reserve on when and if it plans to hike interest rates this year. The Fed will issue its post-meeting policy statement, which could shed light on whether the poor weather and resulting economic soft patch in the first three months of the year, coupled with the negative fallout from the strong dollar, give the Fed enough pause to push out the first rate hike to the fall or later in the year.

European shares finished higher, with Germany's DAX vaulting 1.9%. The FTSE of Britain gained 0.7%, while the CAC 40 of France climbed 1.3%.

Asian stock markets ended mixed Monday after Wall Street gained on strong earnings as investors looked ahead to Apple results — due out after U.S. markets close Monday — and Wednesday's Federal Reserve meeting.

Japan's Nikkei 225 index fell 0.18% and Hong Kong's Hang Seng index rose 1.3%. The Shanghai Composite surged 3%.

Contributing: Ed Brackett, Associated Press.

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