Stocks rose strongly during the day Tuesday and then retreated slightly for the close. The gains came as more companies reported solid first-quarter earnings. The market also got a lift from deal news. Netflix rose after announcing a big jump in its profit and Botox maker Allergan rose sharply on a takeover bid.
At the close on Wall Street, the Standard & Poor's 500 index rose 7.7 points, or 0.4 percent, at 1,879.6. The Dow Jones industrial average was up 65.1 points, or 0.4 percent, to 16,514.4. The Nasdaq composite closed up 40 points, or nearly 1 percent, at 4,161.5.
BOTOX BOUNCE: Allergan shares jumped closed up $21.65 or 16.3 percent, at $163.65 after Valeant Pharmaceuticals said that it had teamed up with activist investor Bill Ackman to make a bid for the Botox maker.
STREAK OF GAINS: It was the sixth straight day of a rally for the S&P 500. Its longest streak of gains since September. The index has staged a comeback after slumping at the start of the month as investors sold highflying tech and biotechnology stocks.
THE QUOTE: The market's gains over the past week have been driven by a combination of factors, said Phil Orlando, chief equity strategist at Federated Investors. "We were definitely oversold, there's no question about that," Orlando said.
"Earnings, by and large, haven't been worse than we thought, and the economic news has actually been a little better."
ALL IN THE CARDS: Netflix closed up $24.41, or 7 percent, at $372.90 after the online video streaming service said its first-quarter earnings soared. Another season of the popular political drama "House of Cards" helped attract an additional 2.25 million subscribers.
HOG HEAVEN: Harley-Davidson jumped $4.33 or 6 percent, to close at $71.87 after it reported a nearly 19 percent rise in first-quarter earnings. Motorcycle sales grew 5.8 percent worldwide and efficiency efforts took hold. The earnings topped Wall Street estimates.