Saunders (14-7), who struck out three and allowed no walks, won his fifth straight with no losses since coming off the disabled list last month. His ERA during that span is 2.51.
Kendry Morales hit his 31st home run for the Angels, who reduced their magic number for clinching the AL West to six with 12 games to play. The second-place Texas Rangers beat Oakland Monday 10-3.
The Yankees' loss -- combined with the Rangers' victory -- prevented New York from clinching a spot in the playoffs.
Andy Pettitte (13-7) went six innings for the Yankees, allowing three runs on five hits. New York has lost three of its last four games but maintained its five game lead over second-place Boston in the AL East, as the Red Sox were beaten in Kansas City Monday.
Alex Rodriguez and Hideki Matsui had home runs for the Yankees.
Celebrity Families of 2014 [PHOTOS]