U.S. stocks rose on Tuesday, with the S&P 500 extending its longest winning run of the year, as investors considered earnings from companies including McDonald's and Netflix along with a roughly $45 billion offer for Allergan.
"We've had some high-profile deals in the health care sector that have folks excited, and we've had some good earnings numbers, which is motivating people to buy stocks," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.
Allergan jumped after Valeant Pharmaceuticals International proposed a merger with the Botox maker. Netflix rallied after projecting price hikes for new customers. McDonald's gained after posting a lower quarterly profit.
Stocks advanced further after data had existing home sales hitting 4.59 million in March, versus a 4.55 million estimate.
"Stocks are reacting to modestly higher first-quarter earnings that of course are weather impacted, and the housing numbers looked constructive today," said Jim Russell, senior equity strategist for US Bank Wealth Management.
"We think the Ukrainian situation is clearly the external wildcard at this point," Russell added of the situation that on Tuesday had Ukraine's acting president calling for the relaunch of an anti-terrorist operation in the east part of the country after the body of a local politician was found showing signs of torture.