U.S. stocks ended slightly higher on Monday as crude oil prices reversed course, drifting lower after hitting fresh highs, while shares of American International Group helped keep the Dow in positive territory.
Bonds slipped, with the benchmark 10-year note (US10YT=RR: Quote, Profile, Research) sagging 2/32 to a price of 91-11/32 for a yield of 4.46 percent.
The dollar scaled new heights against its major peers. Gold fell as the dollar strengthened.
Earlier, markets were pressured as the price of oil broke $58 a barrel, renewing investor concern that higher energy costs would dent corporate profits and hurt consumer spending. But as crude dropped, markets began to level off.
AIG jumped almost 5 percent after New York Attorney General Eliot Spitzer said he expects to reach a "civil resolution" with the insurer, calming fears that his investigation could lead to criminal charges against the company. Its shares rose $2.35 to $53.30.
The Dow Jones industrial average gained 16.84 points, or 0.16 percent, to 10,421.14. The Standard & Poor's 500 Index rose 3.20 points, or 0.27 percent, to 1,176.12. The technology-laced Nasdaq Composite Index was up 6.26 points, or 0.32 percent, at 1,991.07.
It marked a reversal from earlier in the session, when the Dow touched a new intraday low for 2005, falling to its lowest level since early November.
"The turnaround is mainly on oil," said Neil Massa, senior trader at John Hancock Funds. "It was above $58 this morning ... but now it's turned around and the market has changed direction."
Massa also pointed to some confidence about upcoming earnings announcements.