Stocks rebounded on Monday from near 1 percent losses after the open to turn flat in late morning trading.

Consumer stocks led gains, with housing sector stocks ahead after data showed that signed contracts for U.S. home resales rose to a nearly two-year high in January, further evidence of a recovery in the housing market.

The Dow Jones industrial average <.DJI> gained 6.92 points, or 0.05 percent, to 12,989.87. The S&P 500 Index <.INX> gained 0.92 points, or 0.07 percent, to 1,366.66. The Nasdaq Composite <.IXIC> gained 5.11 points, or 0.17 percent, to 2,968.86.

(Reporting by Rodrigo Campos; Editing by James Dalgleish)