Updated from 1:49 p.m. EDT

TheStreet.com 21 index charged higher Monday with the markets, reinforcing the belief that last week's blackout won't hamper the anticipated economic turnaround.

The index closed the day at 1046.60, up 27.74, or 2.7%, from Friday's close, while the market rallied on a positive economic outlook despite the massive power failure in the Northeast last week. The

Dow Jones Industrial Average

rose 90.76 points, or 0.97%, and the

Nasdaq

gained 37.48 points, or 2.2%, to close at 1,739.49.

Yahoo!

(YHOO)

jumped $1.41, or 4.72%, to $31.29 for its highest close since Aug. 1.

Continental Airlines

(CAL) - Get Report

picked up 51 cents, or 3.83%, to close at $13.82, and

General Electric

jumped $1.02, or 3.54%, to $29.80 as rumors swirled about a possible deal materializing with

Vivendi

(V) - Get Report

.

Solectron

(SLR)

TheStreet Recommends

climbed 16 cents, or 3.2%, to $5.16;

Caterpillar

(CAT) - Get Report

gained $2.08, or 2.93%, to close at $73.04, after setting a new 52-week high at $73.14, and

Tiffany

(TIF) - Get Report

shined, up $1.03, or 2.72%, to close at $38.83.

In all, 17 components of the index reaped gains.

Level 3 Communications

(LVLT)

leveled off at $4.72.

Kohl's

(KSS) - Get Report

lost $1.09, or 1.72%, to close at $62.45 after Sanford Bernstein lowered its rating on the retailer to market perform from outperform, and

E*Trade

(ET) - Get Report

and

Best Buy

(BBY) - Get Report

took small losses.

The 21 stands 46.6 points, or 4.7%, ahead of its start on July 3, at 1000.