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

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)