By Dan Strumpf 

Stocks extended their record-setting rally into Monday, as investors continued to digest upbeat economic data and improving corporate profits.

The Dow Jones Industrial Average recently rose 27 points, or 0.2%, to 17601, marking its fifth-straight session of gains. Earlier in the day, the blue-chip index leapt to an intraday record of 17618.46, reversing a modest loss at the open. The S&P 500 also notched an intraday high, recently advancing five points, or 0.2%, to 2037, in its fourth day of gains.

The Nasdaq Composite Index added 13 points, or 0.3%, to 4646.

Traders reported a quiet session with restrained buying following Friday's jobs report, which showed that U.S. employers added jobs at a moderate pace for another month in October. The report lifted the Dow Industrials and the S&P 500 to record closes. For the year, the Dow has notched 22 records and the S&P has ended at 38 closing highs, gains that investors widely attribute to the Federal Reserve's easy-money policies and a slow but steadily improving economy.

"There's a lot of international headlines blowing around, but I think the U.S. market is still digesting the Friday jobs report," said Tom Carter, a managing director and trader at brokerage JonesTrading. "Market sentiment remains positive overall."

Investors in the coming months are expected to keep a close eye on the Federal Reserve, where officials are set to continue their debate on when to lift short-term interest rates, which have been near zero since December 2008. Many investors said that October's jobs report did little to shift their perception of when the interest-rate increase will occur, expected some time next year.

Jack McIntyre, senior research analyst at Brandywine Global, which manages about $60 billion, said he expects risky assets like stocks to continue to benefit even as the Fed raises rates, given recent steps toward looser monetary policy by central banks in Europe and Japan.

"Even with the Fed ending quantitative easing and nudging interest rates higher next year, the financial markets are going to have this tailwind of more-than-adequate monetary policy," he said. "That should set a good backdrop for risk assets."

Crude-oil futures recently retreated 1.5% to $77.45, reversing early gains and extending their four-month slide. The decline has dented energy stocks and led investors to reassess the implications of cheaper oil on corporate outlooks. Oil stocks fell, with shares of Chevron down 0.7% and Exxon Mobil easing 0.1%.

Chinese shares posted their biggest daily percentage gain since July after Chinese regulators said Shanghai's stock market would open up to overseas investors on Nov. 17, through the launch of a trading link between Hong Kong and Shanghai.

The Stoxx Europe 600 rose 0.7%. Two million Catalans voted in favor of independence from Spain on Sunday in a symbolic, nonbinding exercise. In September, Scottish voters voted against separating from the U.K.

In commodities markets, gold futures fell 0.9% to $1158.70 an ounce.

No major economic-data reports are scheduled for release Monday. Later in the week, investors will get a reading on retail sales in October and a preliminary gauge of consumer sentiment in November.

Though the bulk of the third-quarter earnings season is over, quarterly reports of note this week include retailers such as Macy's Inc. and Wal-Mart Stores Inc. Companies in the S&P 500 are on track to post earnings growth of 8% in the third quarter, according to FactSet.

Katrina Lamb, head of investment strategy and research at MV Financial, which manages about $500 million, said she is looking ahead to the coming holiday sales season to help guide stocks through the end of the year.

"You've got a good economic story here in the U.S.," Ms. Lamb said. "In the absence of anything negative, you could look for something positive in holiday sales."

In corporate news, home builder Toll Brothers Inc. said preliminary revenue in the quarter ended Oct. 31 rose 29% to $1.35 billion, topping expectations. Shares rose 3.5%.

Shares of GoPro Inc. fell 3.3%. The maker of portable cameras filed plans Monday for an offering of $800 million in shares after raising $491 million in its initial public offering in June.

The yield on the benchmark 10-year Treasury note edged higher to 2.349%.

Write to Dan Strumpf at daniel.strumpf@wsj.com

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