NEW YORK (CNN/Money) - U.S. stock indexes closed little changed Monday, amid volatile trade and weak volume, as investors took profits on a variety of issues on the last day of what was Wall Street's strongest quarter in years.

Stocks have rallied sharply for more than three months on bets of an economic recovery in the second half of the year, despite only mixed evidence to support such gains. Analysts say that for the markets to continue to rise, economic reports are going to need to show that pick-up. (For more details on what's in store for the second half, click here.)

The week is a holiday-shortened one and is likely to suffer increased volatility amid the weak volume. The market will close Thursday at 1 p.m. ET ahead of the Fourth of July holiday weekend and will be closed Friday.

"This week is going to be fairly volatile, with the shortened trading week, and I would expect to see a correction over the next few weeks," said John Hughes, a market analyst at Shields & Co.

Tuesday is fairly heavy on economic data.

Tuesday brings auto and truck sales for June, both forecast to be fairly flat compared with May. Tuesday also brings the Institute for Supply Management's (ISM) June index on manufacturing, which is forecast to have risen to 50.5 from May's 49.4. The report is often a market mover and could be significant if it does come in above 50, which is often seen as a barometer for expansion in the sector.

The report was preceded by Monday morning's regional reading on manufacturing, the Chicago Purchasing Managers index, which showed only a modest pickup in the sector in June. The index came in at 52.5, up only slightly from May's 52.2 and below the 53 economists were expecting.

On Monday, the Dow Jones industrial average (down 3.61 to 8985.44, Charts), the S&P 500 index (down 1.72 to 974.50, Charts) and the Nasdaq composite (down 2.46 to 1622.80, Charts) all closed near unchanged. All the major indexes closed up for the quarter and are up for the year.

For the second quarter, the Dow gained 12.5 percent, the S&P 500 gained 14.9 percent, and the Nasdaq composite gained 21 percent. The quarter was the Dow's best performance since the fourth quarter of 2001, the S&P's best performance since the fourth quarter of 1998 and the Nasdaq's best performance since the fourth quarter of 2001.

Among the best-performing sectors in the quarter were airlines, up almost 70 percent, and Internet content, up 53 percent, according to Investor's Business Daily. The biggest losers, according to IBD, were fertilizers, which fell 7.8 percent, and hospitals, which fell 6.9 percent.

For the first and second quarters combined, or the first half of the year, the Dow is up 7.7 percent, the S&P 500 is up 11 percent, and the Nasdaq is up 21.5 percent.

Due to the strong nature of the quarter, the last few weeks suffered from some profit taking. The same trend was true Monday, with investors cashing out, particularly in the sectors that have surged the most, such as technology. Rotational buying into stocks that haven't been performing as well lately benefited select blue chips.

Alternately, some portfolio managers also were engaging in end-of-quarter "window dressing," in which money managers sell some of the quarter's big losers and buy some of the winners to make their portfolios look a little better.

Monday also brought the annual rebalancing of the Russell 2000 index, which consists of the bottom 2,000 of the top 3,000 stocks. The rebalancing reflects things like the addition of new IPOs, and stocks whose value has fallen so much or gained so much that they need to be removed from the list. It can often lead to volatility as index fund managers rush to buy stocks that have been added and ditch stocks that have been removed.

All of this caused a great deal of volatility throughout the session.

Analysts said that, absent any significant and unexpected news, trade was likely to remain fairly skittish for at least a few weeks amid the summer's weak volume.

"I think you're going to see some sideways consolidation throughout the summer," added Hughes. "It's not that there's necessarily anything negative out there, but after the kind of quarter we've seen, some of these stocks that have had such a run up are going to need time to adjust to those gains, and you're going to see some declines.

Bellwether Intel (INTC: up $0.24 to $20.81, Research, Estimates) rose after Smith Barney upgraded the stock to "outperform" from "neutral," saying it's fairly inexpensive compared to its competitors. The company also introduced a new Itanium 2 server chip. The stock rose 1.2 percent and was the Nasdaq's most-active issue. Intel is a member of the Dow industrials and is heavily weighted on the Nasdaq.

Troubled energy services company Mirant (MIR: up $0.40 to $2.90, Research, Estimates) saw its share rise 16 percent after the company said it has the support of about two-thirds of its bondholders for a debt exchange offer that would help it avoid filing for bankruptcy. The company is trying to refinance $4.9 billion of debt.

Walt Disney (DIS: up $0.41 to $19.75, Research, Estimates) gained 2.1 percent and was the Dow's biggest advancer on a percentage basis after a portfolio manager in this weekend's Barron's said Disney's growth prospects could be underestimated. The company's stock also continued to benefit, along with Pixar (PIXR: up $2.16 to $60.58, Research, Estimates), due to the continued success of the two companies' successful film, "Finding Nemo."

On the downside, airline stocks retreated after rising over the last few sessions, with AMR (AMR: down $0.32 to $11.00, Research, Estimates) and Delta Air Lines (DAL: down $0.31 to $14.68, Research, Estimates) both edging lower.

Shares of Oracle (ORCL: down $0.42 to $12.01, Research, Estimates) lost more than 3 percent after the Department of Justice requested additional information on the firm's hostile bid for PeopleSoft (PSFT: down $0.12 to $17.56, Research, Estimates).

Market breadth was positive on the New York Stock Exchange, where advancers just narrowly edged decliners on volume of 1.56 billion shares. On the Nasdaq, losers edged winners, with some 1.68 billion shares changing hands.

Treasury bonds were higher, with the 10-year note up 1/4 of a point in price, for a yield of 3.51 percent. The dollar was little changed against the euro and up slightly against the yen.

NYMEX light sweet crude oil futures rose 92 cents to $30.19 a barrel. COMEX gold gained 80 cents to trade at $346.30 an ounce.