Wall Street slips amid mixed U.S. data

U.S. stocks ended lower Monday, recovering from steep losses early in the day, as investors were digesting mixed economic reports at the start of a busy week for economic data.

The Dow Jones Industrial Average fell 41.93 points, or 0.25 percent, to 17,071.22, paring a slump of more than 170 points early in the morning. The S&P 500 dropped 5.05 points, or 0.25 percent, to 1,977.80. The Nasdaq Composite Index dipped 6.34 points, or 0.14 percent, to 4,505.85.

On the economic front, U.S. personal income rose 0.3 percent in August, while personal consumption expenditure gained 0.5 percent, said the U.S. Commerce Department. The increases were generally in line with analysts' expectations and signaled a positive momentum in the U.S. economy.

The U.S. pending home sales index, a forward looking indicator based on contract signings, fell 1.0 percent to 104.7 in August from 105.8 in July, but the index still remained at the second- highest level over the past year, said the National Association of Realtors.

Investors were also expecting a string of major economic data due out later this week, including the closely-watched U.S. nonfarm payroll report for September which is scheduled for Friday.

Moreover, dovish remarks from Chicago Federal Reserve Bank President Charles Evans earlier Monday also provided some support for the market.

"I think there will be quite some time before it becomes appropriate to raise rates," Evans told CNBC in an interview.

However, investors' risk appetite was curbed by protests in Hong Kong, which sent Hong Kong's benchmark Hang Seng Index down 1. 9 percent on Monday.

In corporate news, Japan's SoftBank is reportedly in talks to buy U.S. animation studio DreamWorks Animation SKG, Inc., a deal that would value the latter at approximately 3.4 billion U.S. dollars. DreamWorks shares surged 26.03 percent to end at 28.18 dollars per share.

Last week, the three major stock indices posted weekly losses despite a strong rally on Friday. Traders cited a number of reasons for the selloff, including the Federal Reserve's future policy stance, geopolitical tensions and worries over China's economic slowdown.