US stocks opened lower Monday as profit taking and caution ahead of the looming earnings season took hold in the wake of the bullish week that opened the new year on the markets.
Forty-five minutes into trade (1515 GMT), the Dow Jones Industrial Average was down by 57.20 points (0.43 percent) at 13,378.01.
The broad-based S&P 500 fell 6.10 points (0.42 percent) to 1,460.37, while the tech-heavy Nasdaq Composite lost 11.10 (0.36 percent) to 3,090.56.
Bank of America shares added 0.4 percent after it announced a comprehensive $11.6 billion deal to settle longstanding claims on soured mortgages with Fannie Mae, as well as the sale of servicing rights on $306 billion worth of mortgages.
Bank of America will pay Fannie Mae $3.6 billion in cash and another $6.75 billion to repurchase often dodgy mortgage loans it sold to the government-controlled Fannie Mae.
It will also pay another $1.3 billion to settle additional Fannie claims on the servicing of mortgages.
Nationstar Mortgage, one of the buyers of the servicing rights, gained 16.0 percent.
Online retail giant Amazon surged 3.5 percent after gaining an upgrade to "overweight" from Morgan Stanley.
Netflix, being challenged by Amazon in online video streaming, added 5.3 percent after it announced a deal to buy content from Warner Brothers Television.
Gene sequencing firm Illumina lost 8.0 percent after Roche Holding's chairman scotched expectations of a Roche takeover in an interview.
Bond prices were flat, with the yield on the 10-year US Treasury steady at 1.91 percent and the 30-year at 3.11 percent. Bond prices and yields move inversely.