The Dow Jones industrial average gained 61.32 to 5,748.82, marking its first record since early April and its first close above 5,700. The barometer of 30 big U.S. companies began strong, but slipped into negative territory around midday before rebounding.

Advancing issues outnumbered decliners by about 9 to 7 on the New York Stock Exchange, with 1,323 up, 1,032 down and 813 unchanged. NYSE volume totaled 384.99 million shares vs. 428.37 million on Friday.

Broader-market indicators also rebounded from a midday retreat to pad records set in Friday's rally.

The NYSE composite rose 2.31 to 361.09 and the S&P 500 list rose 4.24 to 673.15. It was the second consecutive record close for both indexes, which are dominated by larger companies.

The Nasdaq composite index rose 5.16 to 1,247.04 and the American Stock Exchange's market value index rose 4.15 to 609.36 - the third straight new high for both indexes.

On Monday, it was announced that Iraq and the United Nations signed an agreement to let Saddam Hussein sell oil to buy food and medicine for his suffering people.

The pact is expected to reduce gasoline prices worldwide. Rising energy prices had been a leading culprit in the recent financial-market jitters about rising inflation.

Oil stocks rose on the news as crude prices, which had fallen more than $4 in recent weeks in anticipation of a deal, recovered quickly from an initial drop. The Dow's three oil stocks - Exxon, Texaco, and Chevron - accounted for nearly half of the blue-chip average's gain.

Bonds were higher again, with the yield on 30-year Treasuries - a benchmark used to set the rate charged on many loans - dipping toward 6.8 percent.