Wall Street rises on financials

NEW YORK (Reuters) - Stocks rose on Monday, with the S&P 500 breaking through its 200-day moving average for the first time since early August on upbeat Chinese factory data and new global banking rules.

The S&P 500's advance has investors watching the 1,130 level, with analysts saying if the index breaks above that point, which has generally been the top of a recent trading range, more gains could lie ahead.

"All summer we've been going sideways, so once you get to borders of that range, the market has a decision to make. My sense is that the technical landscape has really become much more positive," recently, said John Kosar, director of research at Asbury Research in Chicago.

Indexes are on track for a fourth session of increases, including an eighth day of gains out of the last nine for the S&P 500 and Dow. With Monday's rise, all three indexes were in positive territory for the year.

Banks led Wall Street, with JPMorgan Chase & Co rising 3.6 percent to $41.21, while Bank of America Corp rose 3.1 percent to $13.96. The Select Sector Financial SPDR added 1.7 percent to $14.77.

Global regulators agreed to force banks to more than triple their top-quality capital reserves in hopes of preventing another credit crisis. But the new rules, known as "Basel III," provide transition periods that could extend to January 2019 or later -- more time than many bankers expected.

The Dow Jones industrial average <.DJI> was up 61.68 points, or 0.59 percent, at 10,524.45. The Standard & Poor's 500 Index <.SPX> added 10.58 points, or 0.95 percent, at 1,120.13, above its 200-day moving average of around 1,115. The Nasdaq Composite Index <.IXIC> jumped 35.16 points, or 1.57 percent, at 2,277.64.

Another acquisition in the technology sector added to the positive tone.

Hewlett-Packard Co said it would buy cybersecurity company ArcSight Inc for $1.5 billion, the latest in a series of technology-sector transactions. ArcSight surged 25 percent to $43.84, while HP edged down 0.2 at $38.13.

Chinese factories ramped up production in August, data showed, while a key measure of money growth easily topped expectations. The data built on recently improved sentiment in U.S. markets as worries eased over whether the economy was headed back into recession.

Advancers were beating decliners on the New York Stock Exchange by about 11-to-3.

(Reporting by Caroline Valetkevitch; additional reporting by Leah Schnurr; editing by Jeffrey Benkoe)