Tech Sector Leads Advance

Updated from 4:14 p.m. EDT

Stocks had an up-and-down session to start the week, but the major averages closed higher Monday as chip shares, retailers and the housing sector drew interest amid end-of-quarter buying.

The Dow Jones Industrial Average climbed 67.71 points, or 0.59%, to 11,575.81, and the S&P 500 tacked on 11.59 points, or 0.88%, to 1326.37. The Nasdaq Composite surged 30.14 points, or 1.36%, to 2249.07.

Gains of 1.8% or more in Intel(INTC - Cramer's Take - Stockpickr), Caterpillar(CAT - Cramer's Take - Stockpickr) and AT&T(T - Cramer's Take - Stockpickr) supported the Dow.

The Nasdaq benefited from advances of nearly 9% in Broadcom(BRCM - Cramer's Take - Stockpickr) and Lam Research(LRCX - Cramer's Take - Stockpickr).

"Since the markets are forward-looking, we now begin to look for the groups that will be the leaders coming out of whatever economic slowdown may be ahead," said Paul Nolte, director of investments with Hinsdale Associates. "Usually those tied to consumer spending begin to show life as the consumer comes out from under the rocks."

September is historically a weak month for the major indices, but this year it hasn't been. With only four sessions left, the Dow is higher by 195 points, or 1.7%. The S&P 500 has gained 22.5 points, or 1.7%, and the Nasdaq has tacked on 65 points, or 3%.

About 2.71 billion shares changed hands on the New York Stock Exchange. Advancers beat decliners by a 2-to-1 margin. Volume on the Nasdaq was 1.88 billion shares, and winners led losers 3 to 2.

Crude prices rebounded to rise 90 cents to close at $61.45 a barrel. Oil had been weaker after BP(BP - Cramer's Take - Stockpickr) said it would restart the eastern half of its Prudhoe Bay oil field in Alaska. Last month, BP stopped production at Prudhoe Bay to repair a leak in a pipeline, removing 400,000 barrels a day from the world's supply. Since then, oil prices have dropped more than 20%.

"If the market rallies to all-time highs, the question is whether the lagging groups participate or not," said Michael Sheldon, chief market strategist with Spencer Clarke LLC. "The rebound in energy prices certainly helped stocks. Other than that, this isn't based on any real news. We may also be seeing some end-of-month and end-of-quarter buying kicking in."

To view Farnoosh Torabi's video take on today's market, click here.