The Dow and the S&P 500 both jumped to record highs on Monday, and the Nasdaq bounced back from a recent bout of heavy selling.
The market was lifted by some merger activity, some optimism about the economy, and because Russia hasn't made any aggressive moves or statements following this weekend's autonomy vote in eastern Ukraine.
The Dow Jones industrial average (^DJI) rallied 112 points, the Standard & Poor's 500 index (^GPSC) rose 18, and the Nasdaq composite (^IXIC) gained 72 points.
It was a good day for tech stocks, both old and new.
IBM (IBM), Apple (AAPL) and Microsoft (MSFT) all gained more than 1 percent. Adobe (ADBE), Texas (TI) Instruments and Oracle (ORCL) gained 2 percent. While many tech companies have had a rough go of it lately, Oracle is up 22 percent in the past six months.
Among the Internet and social media leaders: Facebook (FB) rose 4½ percent and Google (GOOG) added 2 percent. Twitter (TWTR), Pandora (P) and Salesforce.com (CRM) all gained more than 6 percent.
Biotechs also rebounded. Biogen (BIIB), Regeneron (REGN) and Alexion (ALXN) all up about 5 percent. Alnylam (ANLY) rose 6 percent on word that it plans to file a new drug application for its hepatitis B treatment.
Tesaro (TSRO) jumped 21 percent after the successful completion of clinical tests on its drug to reduce the side-affects of chemotherapy.
But Allergan (AGN) fell 1-percent after officially rejecting Valeant's (VRX) takeover bid.
Pinnacle Foods (PF) said yes to a $6.6 billion offer from Hillshire Brands (HSH). Pinnacle makes the Birds Eye, Duncan Hines and Aunt Jemima brands. Pinnacle jumped 13 percent while Hillshire fell 3 percent.
But the deal boosted a number of other food stocks: Annie's (BNNY), up 5 percent; Boulder Brands (BDBD), up 5 percent, Aaron's (AAN), up 3½ percent; and Hain Celestial (HAIN), up 2½ percent.
Retail stocks gained on optimism that rising consumer sentiment will lead to more buying. Aeropostale (ARO) rose 7 percent, J.C. Penney (JCP) gained 4 percent and both Macy's (M) and Nordstrom (JWN) added 2 percent.
Elsewhere, VeriFone (PAY) rose 8 percent on a Forbes report that Apple will use the company's point of sale payment system.
But Core Labs (CLB) tumbled 12 percent. The energy services firm cut its earnings guidance for the quarter and for the full year.
What to Watch Tuesday:
- At 8:30 a.m. Eastern time, the Commerce Department releases retail sales data for April, and the Labor Department reports import and export prices for April.
- The Commerce Department releases business inventories for March at 10 a.m.
- Fossil Group (FOSL) reports quarterly financial results after U.S. markets close.