NEW YORK - U.S. stocks on Monday rose to within striking distance of their year-to-date highs, as better-than-expected results from Citigroup Inc. helped the beleaguered bank sector reclaim some lost ground.
The Dow Jones industrial average gained 80.91 points to 11,143.69, its highest close since May. The blue-chip average's highest close this year was 11,205 on April 26.
Leading gains on the Dow, Bank of America Corp. rose 3 percent, and J.P. Morgan Chase & Co. gained 2.8 percent.
The S&P 500 index ended at 1,184.71, up 0.7 percent, with financials faring best and consumer discretionary performing the worst among its 10 industry groups.
The Nasdaq composite advanced 11.89 points to 2,480.66.
In beating expectations, Citigroup said fewer customers failed to repay loans in the third quarter, offering hope that the worst losses from loan defaults might be over.
Citigroup's results bolstered shares of other financial institutions, which were hit last week as investors tried to get a handle on the potential fallout from possibly mishandled foreclosures.
Shares of Citigroup gained 5.6 percent.
Conversely, shares of Halliburton Co. declined 4.8 percent after the oil-services company reported revenue below Wall Street expectations.
In economic data, the Federal Reserve reported industrial production declined in September for the first time since the recession ended.
The decline in U.S. factory output bolstered thinking that the Fed would buy more Treasury notes to protect the recovery.