Stocks Take a Step Back

Stocks struggled to reach higher ground on Monday as investors remained cautious ahead of the Federal Reserve's meeting . Fed policy makers aren't expected to make any changes to their target range for the federal-funds rate, but traders are waiting to see what the central bank has to say about the current state of the economy. Market breadth was negative. On the New York Stock Exchange, losers beat winners 8 to 7 on volume of 520 million shares. Financial shares were mostly lower despite shares of Freddie Mac (FRE) surging 78% after the company reported a second-quarter profit. Materials companies' stocks took a big hit. Shares of AK Steel Holding (AKS), Nucor (NUE), and Weyerhaeuser (WY) were some of the biggest decliners. Looking ahead, a plethora of economic data including government figures for monthly retail sales are due this week. Profit reports from Wal-Mart (WMT) and other retailers will also be released this week.

Latest Buzz on the Street

Nortel Networks Corp. is just about done. This morning came the final announcement which we have been expecting for longer than imaginable. Despite this news, the bankrupt telecom equipment maker is still confident it will get bids for all of the company's parts by the end of September. The company also reported better than expected second quarter results.

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Freddie Mac (FRE) followed in the footsteps of American International Group (AIG) and posted its first profit in two years. Shares of the mortgage-finance company surged during morning trading as investors responded to the news.

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Microsoft (MSFT) has finally unhooked Razorfish. Ad giant Publicis Groupe is purchasing the ad agency for $530 million in cash and stock . Rumors of a possible deal between the two have been swirling for months now, so this acquisition was mostly expected. Although this deal appears to be beneficial for both parties involved, investors are still suspicious .

Warren Buffett's investment firm Berkshire Hathaway (BRK.A) is back in the black . Despite reporting an increase in second-quarter profits, analysts at Fox-Pitt Kelton Cochran Caronia still downgraded the stock to "In Line" from "Outperform".

Video - Berkshire Hathaway Q2 Profit Up 14%

Dish Network Corp. (DISH) said that its second-quarter profit slid 81 percent on TiVo Inc. (TIVO) litigation costs and rising expenses . However, the satellite provider surprised investors by reporting that net new subscribers increased by 26,000 during the second-quarter.

Recession or not, people still enjoy a good old fashion hamburger with a side of fries. McDonald's Corp. (MCD) said its same-store sales climbed 4.3 percent in July . The nation's biggest hamburger chain is attributing some of the success to its wide promotion of new coffee drinks . Mickey D's is definitely not helping the growing obesity problem in America.

Nobel Prize-winning economist and author Paul Krugman told an international business forum in Malaysia Monday the world has avoided a second Great Depression but it will take at least two years to recover from the present recession.

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Other Juicy Tidbits

General Motors has come up with another creative way to unload some of the inventory that has been sitting for months now. The automaker has decided to allow some consumers to purchase cars and trucks from California dealers through eBay. You can head over to http://gm.ebay.com if you're interested in making a bid for a particular vehicle.

Video - GM's Henderson on New Strategy

This recession has shaken nearly every corner of the U.S. economy but Trinity Yachts is still turning out custom-built luxury boats, thanks in part to a sagging U.S. dollar . Wealthy overseas clients are purchasing the luxury vessels in record numbers.

Taxes, Cigarettes And George Lucas : What the entertainment and sin industries can teach us about supply-side economics.

What does the former Sherriff of Wall Street think you should do with your money? Stop trying to beat the market and just buy index funds. You can't win, so don't play !

Mark Cuban has been thinking about empire-building. Not his own. In a fascinating blog this weekend, Cuban doled out advice to Newscorp's (NWS) Rupert Murdoch about charging for content at MySpace and other Newscorp websites.