Stocks gained momentum Monday as investors, recovering from last week's sharp sell-off, resumed buying while bracing for a new rush of corporate earnings reports. 

Volume was lighter than usual as Wall Street hesitated to make big bets before the second-quarter earnings reporting period swings into high gear later this month. 

``Next week is when earnings start to roar in and that's what most people are waiting for,'' said Michael Lyons, listed equities trader for Morgan Stanley. Still, ``some of these stocks have gotten beaten up to a point that money managers will get involved.''

The blue-chip Dow Jones industrial average gained 46.72 points to close at 10,299.40, after tumbling more than 2 percent on Friday and closing at its lowest level in almost three months. 

The Nasdaq composite index rose 22.55 points at 2,026.71, and the broader S&P 500 Index gained 8.19 points at 1,198.78. 

Analysts expect companies in the S&P 500 to report that profits fell 17.6 percent in the second quarter versus a year ago, the worst contraction since at least the third quarter of 1991, according to market tracking firm Thomson Financial/First Call. 

Comcast, the No. 3 U.S. cable-television company, lost $4.23 to $38.05 and ranked as the most actively traded stock on the Nasdaq. Comcast said it made the offer for AT&T Broadband after months of talks with AT&T failed. AT&T said it had no plans to sell. 

EMC Corp. rose 99 cents to $22.59, recovering from a steep sell-off on Friday after the data-storage company warned earnings will fall as much as 76 percent below estimates as cost-cutting failed to jump start demand. Bear Stearns said it maintained its ``attractive'' investment rating on EMC, saying company fundamentals should improve once the economy picks up steam. 

NCR Corp., which makes computer systems for banks and retail stores, surrendered $6.17 to $38.60. The company warned its earnings and revenues will be lower than expected because its customers put off purchasing decisions in its data warehousing unit. 

Biomet Inc., a maker of artificial knees, hips and other orthopedics, jumped $1.13 to $44.77. The company posted a 17 percent rise in profits, meeting Wall Street expectations, amid rising demand from the nation's aging baby boomers. 

Among technology companies issuing results this week are wireless giant Motorola Inc., Internet firm Yahoo Corp., both on Wednesday, and Web gear company Juniper Networks, on Thursday. 

Optimists are hoping that interest rate cuts by the Federal Reserve this year will ultimately lift the slowing economy and corporate profits. The Fed has cut rates six times so far in 2001.

Declining issues outnumbered advancers 6 to 5 on the New York Stock Exchange. Volume came to 122.63 million shares, compared to 119.36 million at the same point Friday. 

The Russell 2000 index, which measures the performance of smaller company stocks, rose 2.94 to 486.20. 

Overseas markets were lower Monday. Japan's Nikkei stock average closed down 0.5 percent. In afternoon trading, Germany's DAX index and France's CAC-40 were each down 0.4 percent, while Britain's FT-SE 100 was off 0.7 percent.

-- The Associated Press and Reuters contributed to this report.