New York, Aug 18 (IANS): US stocks reversed early losses to close higher as investors digested mixed economic reports.

The Dow Jones Industrial Average rose 67.78 points (0.39 percent) to 17,545.18. The S&P 500 increased 10.90 points (0.52 percent) to 2,102.44. The Nasdaq composite index jumped 43.46 points (0.86 percent) to 5,091.70, reported Xinhua.

The August 2015 Empire State Manufacturing Survey indicates that business activity declined for New York manufacturers.

The headline general business conditions index tumbled 19 points to minus 14.9, its lowest level since 2009 and well below market consensus of a 4.75 percent gain, reported the New York Fed on Monday.

Wall Street will also keep a close eye on the Fed minutes scheduled for release on Wednesday, which was expected to give more clues on the timing of an interest rate hike.

In corporate news, Tesla Motors Inc. surged 4.87 percent to $254.99 a share on Monday after Morgan Stanley raised its price target on the company to $465 per share, saying the electric car maker is poised to dominate a new era for the automobile.

Overseas, Japan's gross domestic product shrank by an annualised 1.6 percent in the second quarter of 2015, contracting for the first time in three quarters.

European equities finished mixed on Monday as official data show the first estimate of the eurozone's exports were up 12 percent year on year in June, with French benchmark index CAC 40 rising 0.57 percent.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, rose 1.48 percent to end at 13.02 on Monday.