Stocks extended gains on Monday as a solid quarterly profit and raised forecast from Lowe's Cos Inc , the No. 2 U.S. home improvement retailer, heightened hopes the economic slump was easing and spending was stabilizing.

Positive broker comments on such stocks as Bank of America Corp , up more than 10 percent, along with a 3 percent gain in oil prices, also supported the market. Exxon Mobil rose 2 percent.

The Dow Jones industrial average <.DJI> gained 164.39 points, or 1.99 percent, to 8,433.03. The Standard & Poor's 500 Index <.SPX> rose 16.93 points, or 1.92 percent, to 899.81. The Nasdaq Composite Index <.IXIC> was up 26.18 points, or 1.56 percent, at 1,706.32.

(Reporting by Leah Schnurr; editing by Jeffrey Benkoe)