NEW YORK, Dec 31 (Reuters) - U.S. stocks trimmed gains on Monday as President Barack Obama said an agreement to prevent tax increases from beginning on New Year's day is in sight, but the deal is not done.

The Dow Jones industrial average was up 25.80 points, or 0.20 percent, at 12,963.91. The Standard & Poor's 500 Index was up 7.79 points, or 0.56 percent, at 1,410.22. The Nasdaq Composite Index was up 28.31 points, or 0.96 percent, at 2,988.62.

(Reporting By Angela Moon; Editing by Kenneth Barry)

(angela.moon@thomsonreuters.com)(+1 646 223 5685)(Reuters Messaging: angela.moon.thomsonreuters.com@reuters.net)

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