* Investors pause for profits
* Retail stocks down; Best Buy, Wal-Mart weigh
* Indexes dip; S&P 0.2 pct, Dow 0.1 pct, Nasdaq 0.2 pct
* For up-to-the-minute market news click []
(Updates to early morning, adds quote)
By Angela Moon
NEW YORK, Aug 10 (Reuters) - U.S. stocks edged lower on
Monday as a four-week rally encouraged investors to book
profits ahead of a Federal Reserve Board meeting and earnings
from some of the nation's largest retailers later this week.
U.S. stocks rallied on Friday, pushing the Standard &
Poor's 500 Index to a 10-month high as a better-than-expected
July jobs report underpinned hopes that the economy was on the
cusp of a recovery.
Wal-Mart Stores Inc <WMT.N>, a Dow component, fell 0.1
percent to $49.23 after JP Morgan Chase & Co said the retail
giant will not post any growth in second-quarter same-store
sales, weighed down partly by its weak summer seasonal
business.
Warren Buffett's Berkshire Hathaway Inc <BRKa.N> <BRKb.N>
reported its best quarter in nearly two years on Sunday, but
operating earnings for the second quarter fell short of
forecasts, and the shares fell about 6 percent. For details,
see []
"We have a quiet day ... with some profit-taking and data
due later in the week," said Jack Ablin, chief investment
officer at Harris Private Bank in Chicago.
Even with the broader S&P index now up more than 48 percent
from its 12-year closing low in early March, Ablin said the
market is not poised for a pull-back as "buyers are still
waiting to get into the market."
The Dow Jones industrial average <> was down 10.35
points, or 0.11 percent, at 9,359.72. The Standard & Poor's 500
Index <.SPX> was down 1.75 points, or 0.17 percent, at
1,008.73. The Nasdaq Composite Index <> was down 2.08
points, or 0.10 percent, at 1,998.17.
Electronic retailer Best Buy Co Inc <BBY.N> fell nearly 5
percent to $37.91 after Goldman Sachs downgraded the firm to
"neutral" from "buy" and removed it from America's Buy list.
For details, see []
Shares of Freddie Mac <FRE.N>, however, surged 73 percent
to $1.28 after reporting its first quarterly profit in two
years late on Friday. The mortgage-finance company has been
relying on financing from the U.S. Treasury to stay afloat.
McDonald's Corp <MCD.N> shares rose 1.76 percent to $56.17
after the fast-food restaurant operator reported global
comparable sales rose 4.3 percent and U.S. comparable sales
climbed 2.6 percent for July. []
Investors will continue to hunt for signs of economic
improvement from the Fed's two-day meeting that begins Tuesday.
The central bank is expected to hold rates near zero, but
investors are closely watching for signals of an exit strategy
from the Fed's efforts to prop up the financial system.
Also later this week, July retail sales data as well as
quarterly scorecards from major retailers, including Wal-Mart,
J.C. Penney Co <JCP.N> and Macy's Inc <M.N> will give a
snapshot of the industry and how consumer spending is faring in
the recession.
(Editing by Padraic Cassidy)
