U.S. stocks rose about 1 percent in early trading on Monday as the latest batch of economic data and corporate earnings from Europe signal stronger recovery. The banking sector was boosted after some major European banks reported better- than-expected results on Monday. Meanwhile the monthly manufacturing purchasing managers' index for the euro zone countries was revised up to 56.7 in July from the previous estimate of 56.5, indicating the European economy is gathering pace. However, traders are expecting to see the manufacturing sector in the United States is cooling, when the Institute for Supply Management announces its manufacturing index later in the morning. The index is likely to fall to 54.1 in July from 56.2 in June, according to the survey among analysts. Monday's strong open came after the Dow and S&P finished July with the biggest gains in a year, as investors weighed strong corporate results against rather weak economic data. The Dow Jones industrial average gained 122.01 points, or 1.17 percent, to 10,587.95. The Standard & Poor's 500 index rose 12.45 points, or 1.13 percent, to 1,114.05 and the Nasdaq was up 20.79 points, or 0.92 percent, to 2,275.49. 