NEW YORK (Reuters) - Stocks advanced for a second day on Monday as investors were encouraged by the early atmosphere surrounding talks to tackle the "fiscal cliff."

The Dow Jones industrial average <.DJI> rose 207.58 points, or 1.65 percent, at 12,795.89. The Standard & Poor's 500 Index <.SPX> was up 27.00 points, or 1.99 percent, at 1,386.88. The Nasdaq Composite Index <.IXIC> was up 62.94 points, or 2.21 percent, at 2,916.07.

The S&P 500 closed above its 200-day moving average for the first time since November 7.

(Editing by Dan Grebler)