Stocks struggle after rally

NEW YORK (CNNMoney.com) -- Stocks were mixed Monday morning as investors continued to welcome the Federal Reserve's decision to cut the discount rate, but remained wary after a volatile period on Wall Street.

The Dow Jones industrial average (Charts), the broader S&P 500 (Charts) index and the tech-fueled Nasdaq Composite (Charts) index all hovered in a tight range in the early going.

Stocks jumped Friday after the central bank cut the discount rate - the rate the Fed charges banks for temporary loans - by a half-percentage point to 5.75 percent. Although it did not cut the more widely-watched fed funds rate, which affects consumer loans, the move nonetheless soothed worries about the credit and mortgage markets that have roiled Wall Street for weeks.

Additionally, the move raised bets that the Fed will cut the fed funds rate at the Sept. 18 policy meeting.

However, on the heels of such a rally, investors were more cautious Monday.

In corporate news, Lowe's (up $1.63 to $28.50, Charts, Fortune 500) reported a bigger-than-expected jump in second-quarter profits Monday, sending shares 6 percent higher.

U.S. light crude oil for September delivery fell $1.16 to $70.82 a barrel on the New York Mercantile Exchange, sliding on signs that Hurricane Dean is unlikely to disrupt refining centers in the Gulf of Mexico.

COMEX gold for December delivery fell 60 cents to $666.20 an ounce.

Treasury prices gained, lowering the benchmark 10-year note yield to 4.65 percent from 4.67 percent late Friday. Bond prices and yields move in opposite directions.

In currency trading, the dollar fell versus the euro and gained versus the yen.