Media stocks shined on Tuesday as investor sentiment was lifted by the prospects of dealmaking within the sector.
Shares of Discovery Communications jumped 1.3 percent and were among the best performers on the S&P 500. CBS shares, meanwhile, rose 1.14 percent. Disney's stock also finished higher, advancing 1 percent; it was also the best-performing stock on the Dow Jones industrial average.
Dealmaking hopes were stoked by news that Disney approached 21st Century Fox on a deal. The two companies have been in talks in recent weeks, but there is no certainty that a deal will get done. The two stocks rose on Monday and are up for a second straight day.
If the deal were to happen, it would be a "dream come true," according to Laura Martin, senior analyst at Needham.
"Putting these assets under Disney's hands will make them a lot more money," Martin told CNBC's "Power Lunch" on Monday. "At the end of the day, Fox will get more money than it could have by it operating those businesses and Disney will make more at the outset."
While the media sector rose, the broader market posted a mixed session.