Stocks get pumped up for earnings
Stocks gained steam to close the session sharply higher Monday, extending last week's rally, on upbeat earnings from Citigroup and improvement in the housing sector.
The Dow Jones industrial average added 81 points, or 0.7 percent, to end at 11,143.69. The S&P 500 rose up 9 points, or 0.7 percent, to settle at 1,184.71, and the Nasdaq composite index gained 12 points, or 0.5 percent, to close at 2,480.66.
The blue-chip Dow index ended strong, with 24 of its 30 components closing higher. Financial stocks helped the advance following Citi's strong earnings, with JPMorgan ending 2.8 percent higher. The energy sector lagged, with Halliburton and Fluor Energy losing about 5 percent.
It was a strong start to a week that will bring an avalanche of corporate results. Seven of the 30 companies that make up the Dow will release their third-quarter results, in addition to several big banks and tech companies.
Betting on a bond-buying spree
Treasury prices climbed Monday, as investors continue to bet on another bond-buying binge from the Federal Reserve next month.
Demand for Treasurys has surged as investors remain convinced that weak economic data will push the Federal Reserve into another round of asset purchases next month.
Since large purchases by the government would likely drive yields down, bond traders are trying to get into the market at current prices and yields.
Investors are also taking advantage of lower prices following last big week's auctions. Large government auctions often push the price of Treasurys down as more supply enters the market. Since last week's auctions drew weak demand, prices fell more than expected.
- CNNMoney.com journalists Annalyn Censky and Julianne Pepitone contributed to this report.