The market was also unnerved by word that an American citizen had been arrested for plotting to detonate a radioactive "dirty" bomb. Although the news failed to prompt a selloff, it did limit investors' enthusiasm.

The Dow Jones industrial average closed up 55.73, or 0.6 percent, at 9,645.40, according to preliminary calculations, retreating from a 128-point gain earlier in the session. Last week, the average fell 335.58 points.

Broader stock indicators fluctuated. The Standard & Poor's 500 index rose 3.21, or 0.3 percent, at 1,030.74; and the Nasdaq composite index fell 4.79, or 0.3 percent, at 1,530.69.

Retail stocks were mostly higher. Wal-Mart advanced $1.97 to $56.40 on word its June sales at stores open at least a year should be at the high end of forecasts, while Kohl's rose $1.17 to $75.

Even a report by Goldman Sachs chief investment strategist Abby Joseph Cohen that the Dow and S&P should be trading at levels 20 percent higher than they currently are failed to inspire buying.

Cohen said the Dow should be at 11,300 and the S&P 500 should be at 1,300.

Advancing issues led decliners 8 to 7 on the New York Stock Exchange. Volume came to 1.21 billion shares, compared with 1.80 billion shares Friday.

The Russell 2000 index fell 1.22 to 469.22.