Stocks erased gains that came after a stronger-than-expected ISM manufacturing report on Monday and traded around breakeven as investors continued to focus on Europe's debt crisis.

The Dow Jones industrial average dropped 5.44 points, or 0.05 percent, to 10,907.94. The Standard & Poor's 500 Index fell 0.46 points, or 0.04 percent, to 1,130.96. The Nasdaq Composite Index was off 3.11 points, or 0.13 percent, to 2,412.29.