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Stocks close sharply higher

A historic marker on Wall Street in Manhattan

A historic marker on Wall Street in Manhattan on Jan. 4, 2010. Photo Credit: AP / Mark Lennihan

Stocks ended the day sharply higher Monday as the market shook off its worst weekly performance in three months.

At the close on Wall Street, the Dow Jones industrial average rose was up 111.6 points, or nearly 0.7 percent, at 17,055.4. The Standard & Poor's 500 index gains 9.5 points, or nearly 0.5 percent, to 1,977.1. The Nasdaq composite added 25 points, or nearly 0.6 percent, to 4,440.4.

Citigroup rose 3 percent after the bank turned in better results than Wall Street expected. The bank also said it had reached a settlement in an investigation into its mortgage securities business.

Mylan rose 2 percent after the company said it will buy Abbott Laboratories' generic-drug business.

EYES ON EARNINGS: Last week, investors turned cautious with the market trading near all-time highs and big companies starting to post second-quarter earnings. The S&P 500 lost 0.9 percent for the week, its worst showing since April. This week, investors will pore over another batch of quarterly reports from corporate America, including General Electric, Google, Bank of America and Johnson & Johnson.

CITI: Citigroup's profit sank in the second quarter but both earnings and revenue came in better than analysts had estimated. The bank also agreed to pay $7 billion to settle a federal investigation into the mortgage bonds it sold before the financial crisis in 2008. Citi's stock rose $1.57, or 3.3 percent, to $48.58.

A DEAL: Generic drugmaker Mylan said it will buy Abbott Laboratories' generic-drug business in developed markets for $5.3 billion. The combined company will be organized in the Netherlands, which will cut its tax bill. The company will keep its headquarters near Pittsburgh. Mylan's stock added $1.44, or 2.9 percent, to $51.65, while shares of Abbott gained 34 cents, or 0.8 percent, to $41.64.

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