Tuesday's early trade: merger action, earnings push stocks higher

US stocks rose on Tuesday as solid earnings and a new flurry of merger action laid the foundation for a steady upward trend in the equities market that investors believe will continue. US stock indexes hit new highs after topping key technical resistance levels. The S&P 500 has rallied 6.1 percent to two-year highs this month and was up around 22.5 percent from closing lows this year.
The Dow Jones industrial average gained 40.31 points, or 0.35 percent, to 11,518.44. The Standard & Poor's 500 Index rose 5.26 points, or 0.42 percent, to 1,252.34. The Nasdaq Composite Index advanced 12.65 points, or 0.48 percent, to 2,662.21. Adobe Systems Inc jumped 4.6 percent to $30.53 after an upbeat forecast in contrast with a pessimistic outlook three months ago. US coal miner Massey Energy Co rose 1.3 percent to $52.49 after the Wall Street Journal reported that rival Alpha Natural Resources Inc offered to buy it. Alpha Natural climbed nearly 3 percent to $55.15.