The U.S. 2-year Treasury yield traded near 0.50 percent while the U.S. 10-year Treasury yield gained to hold 1.91 percent, up from 1.85 percent earlier.  The Dow Jones industrial average closed up more than half a percent higher on Monday, holding in the black for the year. The blue chip index gained as much as 187 points after falling triple digits in the open.  "I don't know why bad (economic) news continues to be good news," said Peter Boockvar, chief market analyst at The Lindsey Group, who noted the weaker dollar.  Markets were closed on Friday and stocks opened sharply lower on Monday, following futures that plunged after the monthly employment report showed the addition of 126,000 jobs, far below the estimated 245,000 from a Reuters poll.  "The theme of 'data dependent' is back in the market," said Peter Cardillo, chief market economist at Rockwell Global Capital. He still expects the Federal Reserve to raise rates in the second half of this year, but said that weaker economic data could push a rate hike out to 2016.  The ISM non-manufacturing Index was 56.5 in March, its lowest level in three months but in line with estimates. The Markit Purchasing Managers Index rose to 59.2 in March, the highest level since August.  On Tuesday, traders will eye the Job Openings and Labor Turnover Survey (JOLTS) as one of the few other economic indicators coming out this week.  "We really don't get much (data) this week. That's why we're getting a bigger reaction (in stocks)," said Art Hogan, chief market strategist at Wunderlich Securities. Stability in the dollar cross "is helping markets as well."  The strong dollar weighed on corporate profits last quarter and is expected to continue to be a headwind. Analysts are also watching for the effects of lower oil prices.  Alcoa reports quarterly results this Wednesday in the unofficial start to the earnings season.  "The dollar is a little softer. It should be a lot softer," said Peter Schiff, CEO of Euro Pacific Capital. "The biggest disconnect is that people actually think the U.S. economy is recovering" and will lead to a rate hike soon.  Read MoreBad news turns good for 'Fed addicted' stocks  European markets were closed for both Good Friday and Easter Monday. Asian stocks outside Japan gained on hopes the weak jobs report would push out a rate hike by the Federal Reserve.  U.S. stock futures continued to indicate a lower open following remarks by New York Federal Reserve President William Dudley that the central bank will watch subsequent data to see if March's report was an aberration or an indicator of greater economic weakness. Weekly jobless claims have held to lower levels and had suggested a stronger read on monthly nonfarm payrolls.  Dudley was the first Fed official to speak publicly since the March labor report.  Over the weekend, Greece's finance minister told reporters in Washington after a meeting with International Monetary Fund managing director Christine Lagarde that the country "intends to meet all obligations to all its creditors, ad infinitum." Athens is due to pay the IMF 450 million euros ($494 million) Thursday.  Read MoreGreece needs deal by April 24: Varoufakis  In U.S. corporate news, Tesla delivered 10,030 vehicles during the first quarter, its highest quarterly total ever and a 55 percent increase over the first quarter of 2014.  Lorillard and Reynolds American closed higher as investors sought guidance on whether a proposed merger between the tobacco giants will be allowed to proceed. The stocks fell in recent weeks on sentiment that it would be rejected, but reports emerged late last week that the FTC was leaning towards a proposed compromise that would allow it to go through.
U.S. stocks closed higher, rebounding from initial losses on the disappointing jobs report as weak data renewed hopes of a rate hike delay.