NEW YORK - US STOCKS opened the holiday-shortened week on Monday on a mixed and cautious note with investors eyeing bargains while winding down their portfolios at the end of the year amid a depressed economy.

The Dow Jones Industrial Average rose 6.21 points (0.07 per cent) to 8,585.32 at the opening bell after ending the previous week down 0.59 per cent.

The tech-rich Nasdaq gave up 2.64 points (0.17 per cent) to 1,561.68 while the Standard & Poor's 500 broad-market index fell 1.57 points (0.18 per cent) to 886.31.

The market opened with more bleak news as Japan's iconic Toyota auto company forecast its first ever operating loss and European stocks plunging on pre-Christmas gloom.

The OECD, a club of rich nations, warned that the global economic crisis could put an extra 25 million people out of work.

With the Christmas holiday Thursday, trading will be shortened amid lower turnover this week and there is no particular catalyst for any upside bias although some investors anticipated a traditional Santa Claus rally.

'The lack of participation can lead to some funny swings in the major indices,' analysts at Briefing.com said.

The so-called 'Santa Claus Rally,' according to The Stock Trader's Almanac, covers the period that includes the last five trading days of the year and the first two trading days of the new year.

'That means Wall Street will officially be on Santa watch beginning this Wednesday,' Briefing.com said. -- AFP