By Anora Mahmudova and Sara Sjolin, MarketWatch McDonald's skids after disappointing November sales figures

NEW YORK (MarketWatch) -- The U.S. stock market moved lower on Monday as sharp falls among energy companies, which closely tracked oil's continued price slide, dragged down the key benchmarks. Downbeat economic reports form China, Japan and Europe also dented sentiment.

Losses in the S&P 500 (SPX) were led by energy companies, as the sector dropped nearly 3%. Materials and technology sector stocks were also selling off, while defensive sectors such as utilities, health care and telecoms were still in the positive territory.

The Dow Jones Industrial Average (DJI) edged lower, with McDonad's Corp.(MCD) taking a bite out of the blue-chip stock index following disappointing sales. Oil gians ExxonMobil and Chevron also weighed on the index.

The tech-heavy Nasdaq Composite (RIXF) reversed earlier gains, with declines outpacing other benchmarks. The heaviest-weighted component of the index, Apple Inc fell more than 2%.

The broader market moves are playing out amid the back drop of crude oil's continued slide. Crude oil (CLF5) fell nearly 4% on Monday. Energy companies were among the top ten decliners on the S&P 500, sliding more than 5% on average.

Brian Fenske, head of sales trading at Investment Technology Group, brokerage and technology firm, says a lack of clarity about crude oil prices were dictating trading strategy.

"There is a lot of uncertainty when it comes to crude oil prices, which made the whole energy sector difficult to invest in, which is why we are seeing so much selling in those companies," Fenske said.

Also read: 5 global problems that cheaper oil may fuel

Concerns about the health of the global economy resurfaced on Monday after disappointing Chinese trade numbers and data showing Japan's economy contracted more than initially forecast in the third quarter. Figures from Germany showed industrial production expanded less than expected in October.

Also read: How strong dollar may hurt the global economy

The euro (EURUSD) traded around a 28-month low after Ewald Nowotny, member of the European Central Bank's Governing Council, said the currency union is the weak spot in the world economy. European stock markets were also mostly lower.

Movers and shakers: Cubist Pharmaceuticals Inc.(CBST) soared after drug giant Merck & Co. Inc. (MRK) agreed to buy the smaller antibiotics maker for $8.4 billion. Merck shares were unchanged.

Shares of Celgene Corp (CELG) jumped on news that the biotech company extended its partnership with Agios to work on a cancer drug.

(Read more in today's Movers & Shakers column: http://www.marketwatch.com/story/vail-resorts-hr-block-earnings-in-focus-2014-12-07.)

Other markets: Asian markets got their first chance to react to the solid U.S. jobs report issued Friday, sending indexes in Japan and China higher. China's Shanghai Composite closed above 3,000 for the first time since 2011.

In metals, gold traded mostly higher, while the dollar (DXY) rose against most major currencies.

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