Stocks extended gains on Monday, with the S&P 500 trading above its 200-day moving average, after data showed the manufacturing sector grew at a faster rate than anticipated in July.

The Dow Jones industrial average <.DJI> gained 162.12 points, or 1.55 percent, to 10,628.06. The Standard & Poor's 500 Index <.SPX> rose 18.01 points, or 1.63 percent, to 1,119.61. The Nasdaq Composite Index <.IXIC> added 36.45 points, or 1.62 percent, to 2,291.15.

U.S. stocks had opened higher, building on last month's solid gains as investors focused on encouraging corporate results, including strong bank earnings out of Europe.

(Editing by Jeffrey Benkoe)