Analysts said investors were taking a wait-and-see attitude as many large companies prepare to report earnings this week. Among them was Texas Instruments, announcing its results after the close.

"We’ll be watching this afternoon to see what we’re going to do tomorrow morning," said Michael Murphy, head trader at Wachovia Securities in Baltimore. "It’s a crazy time. We’ve had a great year and people are a little bit hesitant… they do not want to make mistakes."

Some investors may be hoping to cash in profits, as many believe the third quarter’s strong earnings have pushed stocks as high as they’ll go.

"People may be feeling it’s time for a rest … to sit back and see how the market really is faring," said Richard A. Dickson, senior market strategist, at Lowry’s Research Reports in Palm Beach, Fla. "The attitude is that there’s no rush."

The Dow Jones industrial average closed up 56.15, or 0.6 percent, at 9,777.94, having gained 0.5 percent last week.

The broader market also closed higher. The Nasdaq composite index rose 12.78, or 0.7 percent, to close at 1,925.14, following a weekly loss of 0.2 percent. The Standard & Poor’s 500 index rose 5.36, or 0.5 percent, to 1,044.68, having risen 0.1 percent last week.

Investors were unhappy with the Conference Board’s report that its index of leading economic indicators, a key forecasting gauge, declined by 0.2 percent in September to 113.0, slightly below expectations. The dip marked the first decline in the index since March, and followed a 0.4 percent rise in August.

The market was again closely watching third-quarter earnings reports for solid evidence the economy is improving.

Dozens of companies will report earnings later this week, including several top Dow components — AT&T Corp., DuPont Co., Eastman Kodak, JP Morgan Chase & Co., McDonalds, Microsoft and Merck & Co. No big moves were expected in the market, said Brian Pears, head equity trader at Victory Capital Management in Cleveland.

"We all tend to bury our heads in the sand during earnings season because there’s so much data to process," Pears said. "It takes time to extrapolate it, and to understand how it affects the market as a whole."

Before the market opened today, 3M Co. said its profits were up nearly 22 percent, beating analyst estimates by 10 cents a share. The maker of Scotch-brand tape and Post-it Notes rose $1.43 to close at $75.48.

The company’s results were gratifying to investors who have been particularly concerned about the struggling manufacturing sector.

Southwest Airlines Co. rose 59 cents, or 3.2 percent, to $18.99, after the discount carrier’s earnings rose on strong summer travel.

Citigroup Inc. reported profits of $4.7 billion for the third quarter, well above Wall Street expectations, but the numbers failed to impress investors. The nation’s largest financial institution declined 26 cents, to close at $48.12.

UBS analyst Glenn Schorr acknowledged that Citigroup’s profits were high, but said it was "difficult for us to be too thrilled," when revenues were flat compared to the second quarter.

Advancing issues outnumbered decliners about 5 to 4 on the New York Stock Exchange. Volume was light with 1.16 billion shares traded, compared to 1.3 billion shares Friday.

The Russell 2000 index, which tracks smaller company stocks, rose 0.10, or 0.02 percent, to close at 521.44.