ALSO READTech stocks power Wall St indexes to fresh record-highs; Netflix up 3% Wall Street climbs as North Korea tension eases, S&P tops with 1.12% rise Wall Street hits record highs on strong technology, health stocks Wall Street down on profit booking in tech sector Wall Street opens higher as energy, financial stocks rise
Financial stocks gained for the first time in four days, led by bank stocks. Reactions to bank results last week were muted on concerns about credit card losses at JPMorgan and Citigroup and weak trading activity across the sector.
Investment banks Goldman Sachs and Morgan Stanley report before markets open on Tuesday. Insurer Travelers jumped 2 percent, providing the biggest boost to the Dow.
Video-streaming pioneer Netflix reports third-quarter results after market.
"The market still wants to be optimistic, it wants to continue to move higher from here," said Robert Pavlik, chief market strategist at Boston Private Wealth.
"It seems to be the trend recently that companies report good earnings and the market sells them off a little bit, taking it as an opportunity to lock in profits. But it's not something that should worry long-term investors."
Of the S&P 500 companies, 55 are expected to report this week. Out of the 32 that have reported so far, 84.4 percent beat earnings expectations, according to Thomson Reuters data.
World stocks and commodities got a boost from upbeat Chinese data on Monday, while U.S. oil futures jumped to a near six-month high as escalating tensions between the Iraqi government and Kurdish forces threatened supply.
At 9:46 a.m. ET (1346 GMT), the Industrial Average was up 66.88 points, or 0.29 percent, at 22,938.6, the S&P 500 was up 5.72 points, or 0.22 percent, at 2,558.89 and the Nasdaq Composite was up 20.73 points, or 0.31 percent, at 6,626.54.
Oil majors Chevron gained 1.4 percent and Exxon rose half a percent.
Adobe slipped 1.58 percent after Deutsche Bank cut rating on the Photoshop maker's stock to "hold".
Groupon rose 4.5 percent after brokerage Cowen and Co upgraded the daily deals website operator's stock to "market perform".
Freeport-McMoran gained 4.7 percent as copper prices broke through the $7,000-a-tonne mark for the first time in three years, helped by Chinese data.
Advancing issues outnumbered decliners on the NYSE by 1,571 to 992. On the Nasdaq, 1,518 issues rose and 973 fell.