Stocks End Volatile Day With Uneven Gains

Investors on Monday tried to shake off the body blow of the huge stock selloff that ended last week, to mixed effects. Manufacturing data helped boost indexes in early trading, but the rally fizzled at midday.

The Dow Jones Industrial Average closed up 76 points at 9789, buoyed by good news in the latest reading of the Institute for Supply Management's manufacturing index. The Nasdaq eked out a gain of 4 at 2049 and the S&P 500 was 7 at 1042.

Stocks fell on Friday as disappointing economic data and heightened volatility pushed the Dow Jones Industrial Average down nearly 250 points, leaving it up just slightly from its September close of 9712.28.

"The equity rally started to feel its age in the past two weeks and indices have fallen back on a combination of slightly disappointing economic and earnings data," said David Shairp, of J.P. Morgan Asset Management. "The coming weeks will thus be important to see if this pullback is more than just month-end exhaustion."

Asian stocks fell sharply after the losses in U.S. markets Friday. European stock markets rose modestly after a report showed manufacturing activity in Europe increased for the first time in a year and a half.

Investors are hoping a similar report due Monday in the U.S. shows continued improvement.

Crude-oil futures rebounded on the Nymex. As of 4:04 p.m., front-month contracts were up $1.01 to $78.01 a barrel.

Dow Jones Newswires contributed to this report.