Stock Market Today: Dow Surges Above 17,000 as Citigroup Tops Street

NEW YORK ( TheStreet) -- Markets were boasting healthy gains Monday with the Dow Jones Industrial Average closing well above the psychological threshold of 17,000, a level it had dipped below after European markets sold off last week.

Driving factors behind Monday momentum were twofold: Citigroup (C), the second bank to report, recorded second-quarter earnings well over expectations and several pharmaceutical companies spoke of M&A activity.

The Dow hit an intraday record high of 17,088.43 before settling 0.66% higher to 17,056. The S&P 500 climbed 0.48% to 1,977.1, while the Nasdaq gained 0.56% to 4,440.42 This marks the second consecutive session of advances for benchmark indices, though Friday's gains were minor.

Citigroup beat second-quarter earnings estimates, helping to push shares up 3% to $48.42. The bank reported adjusted earnings of $1.24 a share vs. the consensus estimate of $1.05. Citigroup also announced a $7 billion settlement with U.S. authorities over the investigation of its sales of mortgage-backed bonds.

Citigroup's peers rallied in response to the upbeat report. Bank of America  (BAC) added 1.2%, JPMorgan  (JPM) moved 0.88% higher and Goldman Sachs  (GS) jumped 1.3%. JPMorgan and Goldman are due to report before the bell Tuesday, while Bank of America will report Wednesday.

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Mylan (MYL) popped 2.1% to $51.24 after the company said it would buy Abbott's (ABT) non-U.S. developed markets specialty and branded generics business for $5.3 billion in stock.

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