U.S. stocks climbed on Monday, with the S&P 500 bouncing back from its biggest weekly drop since 2012, as companies including Berkshire Hathaway reported results.
"I've been a believer for months that every time we get a sell off, it's a buying opportunity," said Randy Frederick, managing director of active trading and derivatives at Charles Schwab.
Warren Buffett's Berkshire Hathaway gained after reporting better results at units including insurer Geico. Michael Kors Holdings declined after the handbag maker reported better-than-expected results, but said its profitability would fall in 2014. Walgreen shares climbed after the drugstore chain said its chief financial officer was leaving the company.
Of the 381 S&P 500 companies that have reported second-quarter results, 68.8 percent have beat estimates on earnings, and 64.1 percent have topped expectations for revenue, according to David Aurelio, research analyst at Thomson Reuters.
"The world's markets are celebrating the $6.6 billion rescue of Portugal's banking system," Jeffrey Saut, chief investment strategist at Raymond James, emailed of Portugal's plans to spend 4.9 billion euros, or $6.58 billion, to bail out Banco Espirito Santo.
"Alas, I wish it was just that simple," Saut added.
After wavering between positive and negative terrain, benchmark indexes took a definitive turn higher as the session progressed.
After a 102-point leap that brought it temporarily back into positive terrain for the year, the Dow Jones Industrial Average gained 75.91 points, or 0.5 percent, to 16,569.28.
The rose 13.84 points, or 0.7 percent, to 1,938.99, with energy pacing gains and utilities the worst performing of its 10 major industry groups.
"Prior to the break below 1,950 support on the S&P 500 last week, we spent five weeks in about a 50-point range. It wouldn't be a surprise if we spent the next three-to-four weeks range bound between 1,950 and 1,900," Elliot Spar, market strategist at Stifel, Nicolaus & Co., emailed in afternoon commentary.
The Nasdaq gained 31.25 points, or 0.7 percent, to 4,383.89.
For every two shares falling, more than three rose on the New York Stock Exchange, where nearly 676 million shares traded. Composite volume topped 3 billion.
The CBOE Volatility Index (VIX), a gauge of investor uncertainty, fell nearly 12 percent to 15.
Energy costs reversed course, with oil futures for September delivery rising 41 cents, or 0.4 percent, to $98.29 a barrel; gold futures fell, with the December contract falling $5.90 to $1,288.00 an ounce.
The VIX surged 34 percent last week, as the S&P 500 tallied its worst weekly loss since June 2012.
—By CNBC's Kate Gibson
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Earnings: Disney, CVS Caremark, Archer Daniels Midland, MGM Mirage,Michael Kors, Cablevision, Scotts Miracle-Gro, Time Inc., Frontier Communications, Groupon, Potbelly, Take Two Interactive, FireEye, First Solar, Zillow, Liberty Interactive, Liberty Media, Regeneron, Activision Blizzard, Toyota
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