U.S. stocks climbed on Monday, with the Dow & the S&P 500 up 1 percent, after CIT Group Inc was thrown a financial lifeline to avoid bankruptcy and investors bet this week's corporate earnings will reinforce optimism about an economic recovery.

The Dow Jones industrial average <.DJI> was up 98.47 points, or 1.13 percent, at 8,842.41. The Standard & Poor's 500 Index <.SPX> was up 9.88 points, or 1.05 percent, at 950.26. The Nasdaq Composite Index <.IXIC> was up 18.08 points, or 0.96 percent, at 1,904.69.

(Reporting by Edward Krudy; Editing by Jan Paschal)