Stocks extended gains on Monday after a report showed a gauge of U.S. economic prospects increased for a third straight month in June, suggesting the recession was drawing to a close.

The Dow Jones industrial average <.DJI> gained 74.59 points, or 0.85 percent, to 8,818.53. The Standard & Poor's 500 Index <.SPX> gained 7.54 points, or 0.80 percent, to 947.92. The Nasdaq Composite Index <.IXIC> gained 17.59 points, or 0.93 percent, to 1,904.20.

(Reporting by Ellis Mnyandu; editing by Jeffrey Benkoe)