Markets end the day mixed as investors take calming breath

Calm returned to the stock market Monday after a spasm of fearful selling last week. Major indexes closed mixed after trading modestly lower for most of the day.

The Dow Jones industrial average opened at its lowest level since December after a 275-point sell-off on Friday ignited by grim economic signals, especially a dismal report on the U.S. labor market.

The Dow closed down 17.11 points, or 0.1%, at 12,101.46. The Standard & Poor’s 500 index rose 0.14 points to 1278.18. The Nasdaq composite index rose 12.53 points, or 0.5%, to 2760.01.

Randy Frederick, managing director of active trading and derivatives at brokerage Charles Schwab, expects trading to remain slow and steady unless traders are moved by positive news, such as a surprisingly strong economic report, or fresh fears about Europe’s financial stability.

“You’ve got to find a catalyst for people to enter the market, and frankly, I just don’t see one right now,” Frederick says.

In Europe, bond investors appeared less concerned about the finances of some of the region’s financially troubled countries. Bond yields fell for Italy and Spain, meaning that they appear less likely to default. Lower bond yields translate into

decreased borrowing costs for those debtstrapped nations.

The price of the 10-year U.S. Treasury note fell, lifting its yield to 1.52%. The yield hit a record low of 1.44% on Friday as fears of a global slowdown increased demand for safe investments.

Among the 10 industry groups in the S&P 500, only three fell: energy companies, whose revenue will be hurt by falling oil prices; industrials, hit by fears of a global economic slowdown; and financial stocks, which would likely bear the brunt if Europe’s problems worsened.

Highlights:

Caterpillar, which exports heavy machinery, fell $2.26 to $83.26 on fears that slower building in China and Europe will reduce demand for construction equipment.

-Chesapeake Energy, the second-biggest U.S. natural gas producer, rose 94 cents to $ 16.52, a 6% gain that was the most in the S&P 500. The company said it will replace four board members, bowing to pressure from activist shareholder Carl Icahn.

-Aside from banks, home builders had the biggest declines in the S&P 500. PulteGroup lost 56 cents to $7.70; Lennar, $1.34 to 23.68; and D.R. Horton, 73 cents to $14.48. In two sessions, they have lost about a third of the huge gains that they posted in the first three months of the year.