With little in the way of corporate or economic news, investors continue to take a step back. The S&P 500 and Dow Jones industrial average closed in the red, while the Nasdaq managed to eke out a modest gain at 0.27%.
"The markets are sort of casting around, looking for direction," said Chris Beauchamp, analyst with IG in London.
He said that investors are still holding back because of anxiety over the Federal Reserve's expected slowdown of bond buying activity.
"It's the thing that continues to worry people," said Beauchamp, who believes that tapering won't start until November at least. "I still think that they're not going to move too soon."
Even a wider-than-expected budget deficit failed to get investors moving.
The markets have been in a bit of a funk for the past few trading days as a summer malaise sets in. August tends to be a month of light trading volumes and muted market movements.
But even with the loss of momentum, stocks have still gained between 18% and 23% in 2013.
Big movers: BlackBerry ( shares surged after the company said it will begin exploring 'strategic alternatives,' including )selling the company. Once a dominant player in the smartphone market, BlackBerry has struggled recently against competitors like Apple and Samsung.
Some traders on StockTwits think BlackBerry already has something brewing.
Investors are also keeping an eye on J.C. Penney (Fortune 500) after activist investor Bill Ackman urged the company to , replace interim CEO Mike Ullman as soon as possible. The struggling retailer fought back, calling Ackman's public comments inaccurate.
George Soros, who owns a 7.9% stake, is reportedly backing J.C. Penney and its board, according to Bloomberg.
Dole Food Company (Fortune 500) shares jumped after it approved a plan by CEO David Murdock to take the company private for $13.50 a share. ,
Tesla ( shares dropped after Lazard Capital downgraded the stock and as investors await Elon Musk's Hyperloop design announcement. The electric car maker's stock is up more than 325% this year. )
OpenTable (, which allows users to make restaurant reservations online, rallied on news that it will expand its partnership with )Facebook (. Users can now book tables on their mobile device via the restaurant's Facebook page. )
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