NEW YORK (AP) _ Stocks retreated Monday as investors sifted through a spate of earnings reports and cashed in profits from Friday's big rally.

In early trading, the Dow Jones industrials was down 38.72, or 0.4 percent, at 9,245.85. It gained 1.1 percent last week, largely on Friday's advance of 172.06.

The broader market also was lower. The Nasdaq composite index lost 3.23, or 0.2 percent, to 1,727.47, following a weekly advance of 1.3 percent. The Standard & Poor's 500 index fell 4.23, or 0.4 percent, to 994.45, after last week's 0.5 percent rise.

Stocks have lurched up and down in recent days as investors sift through quarterly earnings reports and look for evidence of a solid economic rebound. Some analysts believe that even if profits remain strong, the market may see pullbacks after surging so much since mid-March.

Investors also were trading cautiously in advance of economic reports due out later this week, including consumer confidence on Tuesday, gross domestic product on Thursday and employment on Friday. All should offer clues as to the economy's health.

Xerox rose 12 cents to $10.85 after the company reported a quarterly drop in profits that still beat Wall Street's expectations.

Kellogg increased 44 cents to $34 after the cereal maker reported a 19 percent increase in quarterly earnings that beat Wall Street's expectations.

The Russell 2000 index, a barometer of smaller company stocks, rose 1.00, or 0.2 percent, to 469.88.

Overseas, Japan's Nikkei stock average finished 2 percent higher Monday. In Europe, France's CAC-40 advanced 1.8 percent, Britain's FTSE 100 gained 0.6 percent and Germany's DAX index climbed 1.7 percent.

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