The Dow Jones industrial average rose 85.33 points, or 0.41 percent, to close at 20,981.94, with Johnson & Johnson leading advancers and Verizon lagging.

The S&P 500 gained 11.42 points, or 0.48 percent, to end at 2,402.32, with materials leading nine sectors higher and telecommunications and consumer discretionary lagging.

The Nasdaq advanced 28.44 points, or 0.46 percent, to 6,149.67.

About three stocks advanced for every decliner at the New York Stock Exchange, with an exchange volume of 849.01 million and a composite volume of 3.460 billion at the close.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 10.4.

—Reuters contributed to this report.

On tap this week:


Earnings: Noah Holdings, DXP Enterprises

4:00 p.m. TIC data


Earnings: Home Depot, TJX Cos, Dick’s Sporting Goods, Weibo, Red Robin Gourmet Burgers, Urban Outfitters, Jack in the Box, Vodafone, Staples, Manchester United

8:30 a.m. Housing starts

8:30 a.m. Business leaders survey

9:15 a.m. Industrial production


Earnings: Target, L Brands, Cisco System, Tencent, American Eagle Outfitters, Flower Foods, ZTO Express, Rexnord

7:00 a.m. Mortgage applications


Earnings: Wal-Mart, Alibaba, Applied Materials, Autodesk,, Gap, Burberry, Ralph Lauren, McKesson, Ross Stores, Buckle, Eagle Materials

8:30 a.m. Initial claims

8:30 a.m. Philadelphia Fed survey

1:00 p.m. Cleveland Fed President Loretta Mester


Earnings: Campbell Soup, Deere, Foot Locker

9:15 a.m. St. Louis Fed President James Bullard

Watch: Crude higher, markets up too