Stocks extended gains on Tuesday, boosted by financial and technology shares one day after a sharp sell-off, while retailers were lifted by better-than-expected results from Home Depot Inc and Target Corp .

The Nasdaq outpaced the other indexes after RBC cited compelling investment opportunities in the smartphone market and raised its price target on shares of Apple Inc , Research in Motion Ltd and Palm Inc
.

The Dow Jones industrial average <.DJI> rose 78.97 points, or 0.86 percent, to 9,214.31. The Standard & Poor's 500 Index <.SPX> gained 8.55 points, or 0.87 percent, to 988.28. The Nasdaq Composite Index <.IXIC> added 20.84 points, or 1.08 percent, to 1,951.68.

(Reporting by Leah Schnurr; Editing by Padraic Cassidy)