Stocks indexes pared losses on Monday as European bank shares recovered, and the Nasdaq turned positive, boosted by semiconductors after Broadcom Corp (BRCM.O) agreed to acquire NetLogic Microsystems Inc (NETL.O).

The Dow Jones industrial average .DJI dropped 16.87 points, or 0.15 percent, to 10,975.26. The Standard & Poor's 500 Index .SPX shed 0.06 points, or 0.01 percent, to 1,154.17. The Nasdaq Composite Index .IXIC gained 12.13 points, or 0.49 percent, to 2,480.12.

(Reporting by Chuck Mikolajczak; Editing by Padraic Cassidy)