The Dow Jones Industrial Average was up 56.07 points, or 0.6%, to 9497.34, and the S&P 500 rose 8.99 points, or 0.9%, to 1025.39. The Nasdaq Composite tacked on 18.99 points, or 0.9%, to 2037.77.
Tuesday was the third consecutive winning day for stocks, although gains might seem modest considering a successful Treasury auction, rising commodities, some deal-making and an upgrade.
Moreover, market observers have been looking for volume to pick up to make market moves more meaningful, but this might not be the week to get your hopes up, says Bill Stone, chief market strategist at PNC Wealth Management
"Its always hard to tell, but, at least in Philadelphia, quite a few of the kids are back in school, so I think a lot of people are back from vacation," says Stone. "But I think still you're not dealing with a full market participance, and we don't have a whole lot of data coming out this week, so it might be tentative, waiting for more data."
Helping sweeten investor sentiment early in the week was a bit of deal talk. Kraft Foods(KFT Quote) offered 10.2 billion pounds ($16.7 billion) to buy Cadbury(CBY Quote), but the British candy maker rejected the bid.
"When you consider the fact that companies are still willing to pay premiums to buy smaller companies, that's a fundamental bullish point because it shows they think things are still undervalued," says Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. It also shows individual companies are willing to make bigger bets and that the credit markets are moving back to normal, says Detrick. "It's a small step in the right direction."
Meanwhile, crude oil surged $3.08 to $71.10 ahead of the Organization of Petroleum Exporting Countries' meeting and as the dollar weakened.
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