By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market closed higher on Monday, while quarterly performance for the main indexes was mixed. The benchmark S&P 500 showed resilience this quarter despite geopolitical uncertainties and the curtailing of monetary stimulus.

On Monday, investors welcomed news that the European Central Bank may start quantitative easing to address the threat of deflation in the euro-zone. Federal Reserve Chairwoman Janet Yellen's comments about the state of the economy and monetary policy propped up indexes further.

In a speech to a Chicago community reinvestment conference on Monday, Yellen said that the recovery still feels like a recession to many Americans, which is why the central bank will keep its "extraordinary" support for the economy for "some time to come."

The S&P 500 (SPX) ended the day 8.41 points, or 0.5%, higher at 1,872.34, and recorded a 0.7% gain for the month. The benchmark index extended its quarterly winning streak, gaining 1.3% over the past three months.

The Dow Jones Industrial Average (DJI) jumped 134.60 points, or 0.8%, to 16,457.66 and is 0.8% higher on the month. However, the blue-chip index lost 0.7% over the past quarter.

The Nasdaq Composite (RIXF) finished the day up 43.24 points, or 1%, at 4,198.99. The tech-heavy index is down 2.5% for the month, its worst performance since October 2012. It still managed to eke out a 0.5% quarterly gain.

Read the recap of MarketWatch's live blog of Monday's stock-market action.

"What is helping markets today is the news from Europe -- it seems like the European Central Bank got an approval from the Bundesbank to initiate quantitative easing as they are at the threshold of slipping into deflation," said Doug Cote, chief investment strategist at ING Investment Management.

"The U.S. is exporting QE across the pond even as it is ending it here. Hopes for monetary stimulus boosted stocks there and giving investors more confidence here," Cote said.

In economic news, a gauge of Chicago-area businesses unexpectedly tumbled in March, hitting the lowest level since August, led by drops for new orders and employment, according to data released Monday.

However, markets shrugged off the report and looked ahead to manufacturing and employment data later this week.

The biggest data of the week will come on Friday, when the U.S. employment report for March is due. Economists are expecting a rebound in jobs growth after cold winter hindered hiring in the first two months of the year.

Cal-Maine Foods jumps on earnings

Cal-Maine Foods Inc. (CALM) shares jumped 9.2% after the company reported quarterly results. The food company said third-quarter sales and profit rose due to higher prices and continued growth in its specialty-egg business.

Micron Technology Inc. (MU) rallied 8% in the wake of a positive write-up from analysts at Stifel Nicolaus. Analyst Kevin Cassidy said in a note that he disagrees with the general bearish outlook on Micron shares and urged investors to build positions in the stock on weakness.

Cigna Corp. (CI) shares climbed 5.4%. Analysts at J.P. Morgan on Monday raised the stock's price target to $96 from $93, noting that the sell-off in Cigna shares has been overdone.

UTI Worldwide Inc. (UTIW) shares dropped 6% after the company said its loss narrowed in the fiscal fourth quarter, but also reported a decline in revenue. See Movers and Shakers column.

Shares of Johnson & Johnson (JNJ) rose 0.8% after agreeing to sell its Ortho-Clinical Diagnostics unit to the Carlyle Group for about $4 billion in a deal that's expected to close in the middle of the year.

U.S.-listed Prana Biotechnology Ltd. (PRAN) plunged 72% to $2.88 after a failed Phase II drug trial aimed at treating Alzheimer's.

Big Lots Inc. (BIG) shares rose 1.8% after the retailer was upgraded to a buy rating from hold on Monday by KeyBanc Capital Markets. Analysts at KeyBank cited progress being made on turnaround initiatives from the new management team. The firm also initiated a 12-month price target of $45 on Big Lots.

European stocks edge higher, Asian stocks mixed

In overseas markets, european stocks were firm after economic data out of the euro zone showed inflation falling to the lowest level since 2009, which will add pressure on the ECB to introduce stimulus at its monetary-policy meeting on Thursday. The Stoxx Europe 600 edged 0.2% higher.

In Asia, markets were mixed. The Shanghai Composite Index finished down 0.4%. It lost nearly 5% in the first quarter, for the sharpest quarterly loss since June, according to FactSet. The Nikkei 225 index finished up 0.9%, but closed out the quarter with a nearly 9% drop. That was its biggest quarterly fall since June 2012, according to FactSet.

In commodities markets, gold and oil prices fell.

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