* "Today we're seeing some New Year optimism even though volumes are thin," said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.

* The Dow Jones industrial average <.DJI> rose 97.41 points, or 1.11 percent, at 8,873.80. The Standard & Poor's 500 Index <.SPX> added 8.48 points, or 0.94 percent, at 911.73. The Nasdaq Composite Index <.IXIC> climbed 18.79 points, or 1.19 percent, at 1,595.82.

(Reporting by Deepa Seetharaman; Editing by Tom Hals)