Stocks clawed back from session lows ahead of a crucial vote in Washington on the debt deal, but still ended lower Monday following a dismal manufacturing report in addition to renewed worries over some euro zone countries.

The Dow Jones Industrial Average pared most of its losses, but still declined 10.75 points, or 0.09 percent, to finish at 12,132.49, ending lower for the seventh-consecutive session.

Home Depot [HD 34.25 -0.68 (-1.95%) ] and Merck [MRK 33.44 -0.69 (-2.02%) ] were the biggest laggards on the index.

The S&P 500 slipped 5.34 points, or 0.41 percent, to end at 1,286.94. The S&P traded below its 200-day moving average of 1284.34 for most of the session, but rebounded in the final hour.

The tech-heavy Nasdaq slid 11.77 points, or 0.43 percent, to close at 2,744.61.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded near 23.

Most 10 S&P sectors were negative, led by health care and consumer discretionary. Read More