US stocks rose in a holiday-shortened session on Tuesday, lifted by fresh take-over talk and expectations that Apple Inc will make higher-than-expected profit margins on its iPhone. A report showing factory orders, excluding the volatile transportation sector, rose in May, added to optimism about the state of the economy, following a surprising rise of a manufacturing index on Monday.
The Nasdaq was leading Tuesday's gains after a report that Apple's most expensive iPhone model could deliver a profit margin of more than 55 percent for the company after hardware and manufacturing costs.
The Dow Jones industrial average was up 43.82 points, or 0.32 percent, at 13,579.25. The Standard & Poor's 500 Index was up 5.12 points, or 0.34 percent, at 1,524.55. The Nasdaq Composite Index was up 9.98 points, or 0.38 percent, at 2,642.28. Apple's stock rose 4.5 percent to $126.77 and was the biggest contributor to the Nasdaq 100 index's gain.