U.S. Stocks edged up in a choppy session on Monday as politicians bargained for a deal to avert the "fiscal cliff."

The fiscal cliff, or the $600 billion in automatic tax hikes and spending cuts, was set to go into effect January 1 unless Congress could agree on a last-minute deal.

The last trading session of the year is expected to be volatile on low volume and as investors keep a close eye on headlines out of Washington.

The Dow Jones industrial average .DJI was up 7.45 points, or 0.06 percent, at 12,945.56. The Standard & Poor's 500 Index .SPX was up 4.53 points, or 0.32 percent, at 1,406.96. The Nasdaq Composite Index .IXIC was up 17.63 points, or 0.60 percent, at 2,977.95.