The Dow and S&P 500 were modestly higher on Monday while the Nasdaq was lower, adding to last week's losses on a disappointing May payrolls report.
On a day with little data, the S&P 500 index, off more than 12 percent since its April 23 high for the year, hit 1,060 -- a key support level reached several times in recent weeks -- before briefly bouncing higher.
Stocks have suffered on news that is now broadly known and, therefore, somewhat discounted, Robert W. Baird wrote in a note to clients. The firm forecast a support level for the S&P at 1,045 and resistance at 1,160.
On Friday, indexes slumped more than 3 percent after the May payroll report came in far weaker than expected and on worries over the sovereign debt crisis in some European countries, the latest being Hungary.
You would normally see a bounce following a sell-off like we saw on Friday, but the lack of any real direction today shows the market remains unconvinced that all the issues have been worked out, said Alan Gayle, senior investment strategist at RidgeWorth Investments in Richmond, Virginia.
The Dow Jones industrial average <.DJI> was up 16.86 points, or 0.17 percent, at 9,948.83. The Standard & Poor's 500 Index <.SPX> was up 2.23 points, or 0.21 percent, at 1,067.11. The Nasdaq Composite Index <.IXIC> was down 8.35 points, or 0.38 percent, at 2,210.82.
Financials were lower on Monday, with Bank of America Corp the top percentage decliners among Dow components, off 1.9 percent to $15.06. The company's Countrywide Financial Corp unit agreed to pay $108 million to settle U.S. government charges of misleading and overcharging consumers.
Separately, a government commission investigating the financial crisis has issued a subpoena to Goldman Sachs Group Inc for failing to comply with a request for documents and interviews in a timely manner, and the stock fell 0.6 percent to $141.54.
In the tech sector, Apple Inc slid 0.3 percent to $255.30 ahead of the company's annual developer's conference where Chief Executive Steve Jobs is expected to unveil a new version of the company's popular iPhone product.
On the upside, Amazon.com Inc rose 1.8 percent to $124.83 after Goldman Sachs added the stock to its conviction buy list.
U.S.-listed shares of BP Plc rose 1.2 percent to $37.60 after the company said it made progress in containing the Gulf of Mexico oil spill, but still faced tough questions.
In merger news, Spain's Grifols SA agreed to buy Talecris Biotherapeutics Holdings Corp , which produces plasma-based protein therapies, for $3.4 billion. Talecris surged 25 percent to $19.89.
Bristol-Myers Squibb Co climbed 7.8 percent to $24.18 after a study found its experimental drug extended survival in patients with deadly skin cancer.
(Editing by Kenneth Barry)