NEW YORK (CNNMoney.com) -- Stocks ended mostly higher Monday as investors set aside some worries about the fallout from Goldman Sachs and scooped up financial, consumer and energy stocks.
The Dow Jones industrial average (INDU) added 73 points, or 0.6%, after having been down by as much as 41 points earlier. The S&P 500 index (SPX) gained 5 points, or 0.5%. The Nasdaq composite (COMP) ended just below unchanged.
Stocks seesawed through the afternoon as enthusiasm about Citigroup's strong profit report vied with the fallout from Goldman Sachs (GS, Fortune 500)' fraud charge last week.
Late in trading a published report said the SEC voted narrowly to approve the charges against Goldman, a signal that the case might not be as strong as some in the industry feared. The company reports quarterly results Tuesday.
Goldman Sachs (GS, Fortune 500) gained 1.6% and the KBW Bank (BKX) sector index rose 1%. Citigroup shares gained 7% following its profit report.
A better-than-expected reading on leading economic indicators was also in play, while the strong dollar hurt commodity shares.
A recovery in financials near the close helped the Dow and S&P 500 end with gains and the Nasdaq cut losses.
Energy, metal and mining shares ended mixed after falling through the afternoon in tune with commodity prices. Prices fell on the stronger dollar and concerns about the spread of ash from a volcano in Iceland. Airline stocks fell as most European airports remained closed. The Amex Airline index lost 2.2%.
After the close, IBM (IBM, Fortune 500) posted higher quarterly sales and earnings that topped estimates and also boosted its full-year 2010 earnings forecast. Shares fell 2% in extended-hours trading after rising 1% during the session.
The declines last Friday fell at the end of an otherwise upbeat period on Wall Street. The Dow and Nasdaq have risen for eight of the last nine weeks and the S&P 500 for seven of the last nine weeks. Last week, the Dow and S&P 500 moved just below 18-month highs, while the Nasdaq reached a near 22-month high.
Following such a run, stocks could be in for a bigger retreat, said Liz Miller, founder of Summit Place Financial Advisors.
"I certainly think a pullback is expected and would be reasonable here, but as I look out longer term, I can see the market higher," Miller said.
"The Dow is at an 18-month high and we have a number of areas that have rebounded to those levels, corporate profits are increasing and we're still in a low-interest rate environment," she said. "These factors should continue to move the market higher."
Citigroup: Citigroup reported quarterly profit that trounced Wall Street estimates, earning $4.4 billion or 15 cents per share, versus a loss a year ago. Analysts thought Citi would report break even in the quarter, according to a survey by tracker Thomson Reuters. Citi shares gained 7%.
The quarter was driven by higher trading revenue, particularly in the company's bond business. But Citi's CEO warned that the company remains cautious on its outlook, given the uncertain economic recovery.
Roughly 25% of the S&P 500 or 123 companies are due to report results this week, including 11 Dow components. Earnings are currently on track to have risen 41% from a year ago, according to Thomson Reuters. Revenues are on track to have climbed 11% from a year ago.
Economy: The index of leading economic indicators (LEI) rose 1.4% in March after climbing a revised 0.4% in the previous month, according to a Conference Board report released Monday. Economists surveyed by Briefing.com thought the March increase would be 1.1%.
Toyota: Toyota will pay a record $16.4 million fine for waiting months to notify the Department of Transformation about a pedal defect that led to the recall of more than 8 million autos. Shares eased 0.4%.
World markets: In overseas trading, European markets fell, with London's FTSE down 0.3%, France's CAC 40 down 0.4% and Germany's DAX down 0.3%. Asian markets tumbled, with Hong Kong's Hang Seng index down 2.1% and Japan's Nikkei down 1.7%.
Bonds: Treasury prices slipped, raising the yield on the 10-year note to 3.81% from 3.77% late Friday. The 10-year yield had risen as high as 4% a week ago, an 18-month peak. Treasury prices and yields move in opposite directions.
The dollar and commodities: The dollar gained versus the euro and the yen.
COMEX gold for June delivery fell $1.10 to settle at $1,135.80 per ounce.
U.S. light crude oil for May delivery slid $1.79 to settle at $81.45 a barrel on the New York Mercantile Exchange.
Market breadth was negative. On the New York Stock Exchange, losers beat winners eight to seven on volume of nearly 1.27 billion shares. On the Nasdaq, decliners beat advancers eight to five on volume of 2.16 billion shares.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.80%||3.88%|
|15 yr fixed||3.20%||3.23%|
|30 yr refi||3.82%||3.93%|
|15 yr refi||3.20%||3.23%|
Today's featured rates:
|Ford Motor Co||8.29||0.05||0.61%|
|Advanced Micro Devic...||54.59||0.70||1.30%|
|Cisco Systems Inc||47.49||-2.44||-4.89%|
|General Electric Co||13.00||-0.16||-1.22%|
|Kraft Heinz Co||27.84||-2.20||-7.32%|
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