Stocks mixed ahead of week's key data

NEW YORK -- Investors are beginning a holiday-shortened week on a cautious note.

Stocks seesawed in light trading Monday, amid mixed moves in overseas markets. Stocks in Asia are lower, while European markets advanced.

Investors were pleased by data showing that European business and consumer confidence rose for a third straight month. Still, the European Commission took a cautious stance, saying the economic rebound in Europe is relatively subdued.

That report echoes the wary outlook in the U.S. As the second quarter comes to a close, investors are at a crossroads. After running up the market more than 30% in three months, investors have become more skeptical of the economy's recovery in recent weeks amid a mixed bag of data. Though the Dow Jones industrial average is still up 28.9% from a 12-year low on March 9, it has fallen 4.1% from a five-month high on June 12.

There is little by way of economic or corporate news scheduled for Monday. However, this week, which is shortened by the Independence Day holiday on Friday, brings key data that will give investors a better sense of where the economy is headed.

Of particular importance is the government's monthly employment report, due Thursday. Though considered a lagging indicator of the country's economic health, the unemployment rate is still one of the most closely watched gauges of the economy. The labor market is intricately tied to many facets of the economy, including consumer spending.

Investors will also get readings on consumer confidence and manufacturing this week.

Last week, the major indexes finished mixed. The Dow Jones industrial average fell 1.2%; the Standard & Poor's 500 index slipped 0.3%; and the Nasdaq composite index rose 0.6%.

One point of interest Monday will be the sentencing of Bernard Madoff, the mastermind behind a multibillion dollar Ponzi scheme.

Madoff pleaded guilty in March to securities fraud and other charges. Prosecutors are seeking a 150-year jail sentence, while his lawyers are insisting that 12 years in prison is sufficient punishment.