July's rally appears to be fading. Stocks edged lower as investors awaited economic reports due this week. Also, fewer people signed contracts in June to buy previously owned homes. A string of big-name merger deals (Saks-Hudson's Bay, Elan-Perrigo, Omnicom-Publicis) didn't lift stocks. Seven of 10 S&P 500 sectors fell, led by banks and energy companies. On Wednesday, the US gives its first estimate of second-quarter growth; on Friday, the monthly jobs survey. Those should give signals on the economy's strength, the key to the Fed's next move. Its stimulus plan has been a big factor in a four-year stock rally. The Fed winds up a two-day policy meeting Wednesday.