Updated with closing prices.

The major stock indices rose more than 1% Monday as investors warmly received more earnings, economic and corporate headlines, including news that small business lender CIT Group ( CIT) secured rescue financing.

The Dow Jones Industrial Average rose 104.21 points, or 1.2%, to 8848.15, while the S&P 500 climbed 10.75 points, or 1.1%, to 951.13. The Nasdaq Composite edged up 22.68 points, or 1.2%, to 1909.29.

Caterpillar ( CAT) shares were leading the Dow, up 7.8%, after Bank of America/Merrill Lynch upgraded the stock to buy a day ahead of its quarterly earnings release.

Meanwhile, Goldman Sachs raised its annual forecast for the S&P 500, upping its year-end target to 1060 from 940, predicting strength in earnings will drive stocks higher in the second half of the year.

The major indices surged more than 7% last week after a better-than-expected batch of earnings and a round of somewhat improved economic data lifted recovery hopes and spirits on Wall Street. Economic data were on the light side at the start of the new week with just the Conference Board's leading indicators report. The index rose slightly more than expected, by 0.7% in June, after a 1.3% increase the month prior.

Two stocks -- CIT Group and Human Genome Sciences ( HGSI) -- made headlines early, also offering some support to the bulls.

The CIT board approved a deal Sunday evening with some of its major bondholders to help the struggling small business lender avert a bankruptcy filing through a $3 billion emergency loan, The New York Times reported. Shares rose 78.6% to $1.25.

In other news, GlaxoSmithKline ( GSK) and partner Human Genome Sciences reported taht their experimental drug Benlysta achieved a statistically significant improvement in disease response compared with placebo in a pivotal phase III study of lupus patients .

If confirmed in a second late-stage study later this year, it could become the first new drug approved to treat lupus specifically in 50 years. Human Genome Sciences shares surged 277% to $12.51, while Glaxo shares rose 4% to $37.81.

(Click below to hear Senior Columnist Adam Feuerstein break down this news and what it means for Human Genome Sciences.)

chart
Click to Listen
Market Q&A

 Market Roundup

Halliburton ( HAL) shares rose 4.4% to $22.33 after it reported a 48% decline in second-quarter profit but topped expectations.

Meanwhile, mid-Atlantic regional bank M&T Bank ( MTB) rose 4.9% to $57.11 after it said its second-quarter profit tumbled 75% due to credit losses and writedowns but beat expectations on an adjusted basis.

As of Friday, 71% of the S&P 500 companies that had reported results topped expectations. But "missing from much of the reporting was the fact that while earnings did well, sales still looked poor," writes Paul Nolte, director of investments at Hinsdale Associates.

"Cost cutting (read: layoffs) remains job one at many companies in this still weak economy," he writes. "While the calls for an end to this downturn are centering around year-end, the trajectory of the growth rate is still likely to be rather low as spending will not be up to historical norms."

Boston Scientific ( BSX), Legg Mason ( LM) and Texas Instruments ( TXN) were slated to report after the market closed.

Things pick up on Tuesday with blue-chip Dow Jones Industrial Average components Caterpillar, DuPont ( DD), Merck ( MRK), Coca-Cola ( KO) and United Technologies ( UTX) all on the earnings schedule.

Stocks overseas were rising. In Europe, London's FTSE 100 and the DAX in Frankfurt were rising 1.3% and 1%, respectively. In Asia, the Hang Seng in Hong Kong surged 3.7%. Japanese markets were closed for a holiday.

Commodities were recently higher, with crude oil futures rose 42 cents to $64.98 a barrel, while gold added $11.30, to $948.80 an ounce.

The dollar was losing ground vs. the pound, euro, and yen, and longer-dated Treasuries were rising in price, falling in yield. The 10-year was up 15/32 to yield 3.59%, while the 30-year gained 1, yielding 4.47%.

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home