Stocks recovered from early losses and ended higher on Wall Street.

Investors remain focused on the economy and upcoming reports from retailers this week.

The S&P 500 is up 0.4% Monday after stumbling in early trading. The Dow

Jones Industrial Average and Nasdaq also extended last week's gains.

Oil prices dropped sharply on worries about the global economy. China's central bank cut a key interest rate after acknowledging more needs to be done to shore up the world's second largest economy.

Treasury yields also fell, as manufacturing in New York state unexpectedly shrank.