Stocks turned mixed as Citigroup earnings lifted bank stocks, but a decline in tech stocks took strength out of the Nasdaq.
TheDow Jones Industrial Averagerose more than 30 points. JPMorgan , and Exxon Mobil rose, while Intel and Home Depot fell.
The S&P 500 Index rose slightly, while the tech-heavy Nasdaq fell. TheCBOE Volatility Index, widely considered the best gauge of fear in the market, rose to above 19.
Banks, telecom and utilities rose, while consumerdiscretionary and industrials fell.
Citigroup's shares rose more than 3 percent after the bank reported quarterly earnings that beat analyst expectations. Net income for Citi, however, dropped 20 percent from the quarter before.
All eyes have been on the banking sector as financial stocks fell sharply last Thursday and Friday. Investors were worried the fallout from the growing crisis could lead to big costs for companies.
Citi's news, however, appeared to have lifted the banking sector Monday, as the KBW Banking Index rose.
Bank of America and Wells Fargo were among the banks trading higher Monday. Both post earnings results later this week.
Hasbro's shares, meanwhile, rose to the top of the S&P 500 after the toy-maker reported net income and revenue that beat expectations on strong sales of preschool toys.
Halliburton's shares, however, sank after the energy producer also posted good results thanks to its onshore North American business, yet the stock slipped in the pre-market.
Elsewhere in energy news, most coal stocks fell after Goldman Sachs cut its rating on the sector to "neutral," citing a 14 percent jump in shares of coal companies since July 1. Specifically, Goldman kept its "buy" rating on Peabody Energy , but reduced its rating for Alpha Natural Resources to "neutral," and kept its "neutral" ratings for Arch Coal , Walter Industries and Massey Energy .
The week ahead features earnings releases from a fifth of the stocks in the S&P 500.
Apple and Dow component IBM report earnings are both higher ahead of earnings releases after-the-bell Monday.
Analysts expect Apple’s fourth-quarter earnings to rise driven by growing iPhone sales. A recovery in global tech spending is expected to have buoyed IBM’s third-quarter earnings.
Most tech stocks fell, however, on Monday, as stocks of semiconductors slumped. Texas Instruments , Advanced Micro Devices , and MicronTechnologywere all lower.
Terrestar plummeted more than 50 percent after a report in the Wall Street Journal that the mobile communications firm may file for Chapter 11 protection under the U.S. Bankruptcy code.
Shares of J.C. Penney slumped after the department-store retailer put in a poison pill that prevents any other shareholder from exceeding a 10 percent stake in the company. Pershing Square Capital Management, headed by activist investor Bill Ackman, has recently accumulated a 16.5 percent position in the company.
In economic news, the National Association of Homebuilders' housing market sentiment indexrose to 16 in Octoberfrom 13 in September, the first rise in five months.
The housing news came during a morning filled with economic data and earnings news.
Industrial production fell 0.2 percentin September, instead of rising 0.2 percent as expected. Capacity utilization, meanwhile, slipped to 74.7 percent, 4.2 percentage points above a year ago. Analysts at Briefing.com had expected capacity utilization to rise to 74.8 percent from 74.7 percent in August.
Dallas Federal Reserve President Richard Fisher said on CNBC early Monday that the Fed can't help the economy alone, and Citi reported better-than-expected earnings. Fisher also said the Federal Reserve needs the help of fiscal and regulatory authoritiesif it is to help the US economy grow at a faster pace.
Federal Reserve Chairman Ben Bernanke said on Friday that high unemployment and low inflation point to a need for a further easing of U.S. monetary policy, fueling speculation that the Fed might take further steps to boost the economy as early as November.
European stocks were lower in early trading on Monday, while the dollar slipped against a basket of currencies, after rising earlier in the session.
On the Calendar Next Week:
MONDAY: Atlanta Fed President Lockhart speaks; Corporate Governance Conference, Gartner Symposium, ABA Annual Convention; after-the-bell earnings from Apple and IBM.
TUESDAY: Housing Starts, Grant's Conference, CFTC Open Meeting on Dodd-Frank; Chicago Fed President Evans speaks; before-the-bell earnings from BofA, Coca-Cola, Goldman Sachs, J&J, AEP, Bank of NY Mellon, Harley-Davidson, Lockheed Martin, NY Times; after-the-bell earnings from Yahoo, Sallie Mae and Western Digital.
WEDNESDAY: Mortgage applications, oil inventories, Beige book; Apple Mac Event, Richmond Fed. President Lacker speaks, Philadelphia Fed President Plosser speaks; before-the-bell earnings from Abbott Labs, Boeing, BlackRock, Morgan Stanley, United Technologies, Wells Fargo, M&T Bank, US Airways; after-the-bell earnings from eBay, E*Trade, Netflix and Seagate Technologies.
THURSDAY: ECB Meeting, jobless claims, leading indicators, natural gas inventories, money supply, Kansas City Fed President Hoenig speaks, CBO Director Elmendorf speaks; before-the-bell earnings from AT&T, Caterpillar, Credit Suisse, Eli Lilly, Novartis, Travelers, UPS, Continental Airlines, PNC Bank, Southwest Airlines, and Xerox; after-the-bell earnings from American Express and Amazon.
FRIDAY: G20 Finance Ministers & Central Bank Governor's Meeting; before-the-bell earnings from Verizon, Exelon, Ingersoll-Rand and Schlumberger.
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