Stocks extended gains, driving the benchmark S&P 500 index and the Nasdaq up more than 1 percent, as investors bet on more upbeat earnings following Alcoa Inc's surprising profit.

A jump of nearly 3 percent in crude oil futures prices underpinned energy shares, while reassuring monthly sales from major retailers, including Macy's Inc , bolstered hopes that consumers would resume spending and help the economy recover from a deep recession.

The Dow Jones industrial average <.DJI> was up 92.05 points, or 0.95 percent, at 9,817.63. The Standard & Poor's 500 Index <.SPX> was up 11.36 points, or 1.07 percent, at 1,068.94. The Nasdaq Composite Index <.IXIC> was up 25.50 points, or 1.21 percent, at 2,135.83. (Reporting by Ellis Mnyandu; Editing by Jan Paschal)