U.S. Stocks Close Mixed after Obama Releases Budget

U.S. stocks closed mixed on Monday after Obama released a 3.73-trillion-dollar budget proposal for fiscal 2012.

U.S. President Barack Obama proposed a budget on Monday, according to which the deficit for the current year will increase to 1.65 trillion dollars, a level equal to nearly 11 percent of the gross domestic product, making it the largest shortfall since the end of World War II.

According to the budget, the deficit is expected to decline sharply to 1.1 trillion dollars in the year of 2012.

Meanwhile, China's trade surplus fell to its lowest level in nine months in January as imports increased. The reading would help promote Asian markets, boost European commodity stocks and potentially send U.S. natural resource shares higher.

Stocks ended last week with a moderate gain after the resignation of Egyptian president Hosni Mubarak. The Dow rose to its highest close since June 2008.

The Dow Jones industrial average dropped 5.07 points, or 0.04 percent, to 12,268.19. The Standard & Poor's 500 Index was up 3.17 points, or 0.24 percent, to 1,332.32. The Nasdaq gained 7.74 points, or 0.28 percent, to 2,817.18.