NEW YORK - The battered stock market got a respite Monday as the major indexes ended narrowly mixed despite turmoil on global markets in response to last week's slide.
With the major indexes starting at 2005 lows, the Dow Jones Industrial Average fell 16.26 points (0.16 percent) to close at 10,071.25 in a choppy session.
The tech-heavy Nasdaq managed to hold a gain of 4.77 points (0.25 percent) to 1,912.92 while the Standard and Poor's 500 broad-market index climbed 3.36 points (0.29 percent) to 1,145.98.
Global markets were in turmoil following heavy losses last week on Wall Street and tensions between China and Japan, but the market appeared to be stabilizing.
"The action today leads me to believe that some fast money is now buying the dips as opposed to selling into every pullback," said Elliot Spar, market strategist at Ryan Beck and Co.
"We are overdue for a relief rally but it is a long climb back."
A drop in crude oil helped the mood. Futures dipped briefly below 50 dollars a barrel and closed down 12 cents at 50.37.
But a negative factor was a third weekend of anti-Japanese demonstrations in China.
Ties between East Asia's two most powerful nations have rapidly approached a nadir after Japan approved a nationalist textbook that glossed over wartime atrocities. They have been further ruffled by Japan's bid for a permanent seat on the UN Security Council.
Some said the the mood remained cautious on Wall Street after the main indexes slumped to fresh lows for 2005 last week.
"It seems as if we have re-entered the bizarre world in which every piece of news must be interpreted as being bad for equity investors," said market strategist Tobias Levkovich at Smith Barney.
"One can almost feel the growing and increasingly tangible anxiety amongst investors as red ink is spreading across the spectrum of equity asset managers."
Ralph Acampora, technical strategist at Wachovia Securities, said the bull market may be over, and urged investors to sell into any rallies.
"There's an awful lot of bearishness out there. We're making the statement today that most of the averages have made their bull-market peaks ... we're transitioning into a bear market."
Michael Moe at ThinkEquity Partners, said however the near-panic means this is the time to buy.
"Conventional wisdom is that the current environment of rising interest rates and high energy prices will choke growth," he said.
"Investor sentiment is the poorest it's been since March 2003 -- when the current bull market began. It's tough to have courage behind your convictions when stocks are going down in your face and the mob is screaming to 'head to the hills.' That said, we think the exodus from stocks provides an uncrowded opportunity to buy back growth companies at sale prices."
European stock markets fell sharply, taking a cue from Asia in the wake of last week's Wall Street slide that stemmed from fears of a possible economic slowdown in the United States.
The London FTSE 100 index tumbled 1.32 percent to 4,827.10, the Frankfurt DAX 30 dived 2.55 percent to 4,202.20 and in Paris the CAC 40 shed 2.05 percent to 3,949.59.
The DJ Euro Stoxx 50 index of leading eurozone shares plunged 2.19 percent to 2,947.79.
Among active US shares, Dow component 3M tumbled 4.96 or 6.3 percent to 75.90 after the maker of Scotch tape and various industrial products reported earnings better than most forecasts but sales growth that disappointed Wall Street.
Bank of America however climbed 45 cents to 44.73 after it reported a 75 percent jump in net earnings.
IBM, which plunged eight percent Friday after a disappointing earnings report, dipped another five cents to 76.65.
Adobe Systems tumbled 5.89 or 9.7 percent to 54.77 after announcing a 3.4 billion dollar deal to buy rival software maker Macromedia, up 3.27 or 9.8 percent to 36.72.
Intel rose nine cents to 22.21 on a positive research note from Wells Fargo as the world's biggest chipmaker unveiled its new WiMax chip for long-range wireless applications.
Bonds remained well bid amid the caution on stocks. The yield on the 10-year US Treasury bond fell to 4.249 percent from 4.271 percent Friday and that on the 30-year bond dropped to 4.587 percent from 4.626 percent. Bond yields and prices move in opposite directions.

04/18/2005 21:16 GMT