The Dow Jones Industrial Average and S&P 500 Index were climbing 1.1% and 1.3%, respectively, while the Nasdaq was up 1.8% midday Tuesday.
Rising crude prices in premarket trading helped jumpstart Tuesday's stock rally. However, as crude prices have fallen back into the red during trading, the rise of the major indices has continued.
ADT (ADT) is leading the way higher on Tuesday after the company agreed to a $6.94 billion merger with Apollo Global Management (APO). ADT shareholders will receive $42 per share they own, a 56% premium from the stock's Friday closing price. The deal, which still needs shareholder approval, is expected to close by June.
Meanwhile, Groupon (GRPN) shares are up more than 40% in trading today after Chinese e-commerce company Alibaba (BABA) revealed a 5.6% stake in the company worth about $95 million.
Shares of Apple (AAPL), a holding in Jim Cramer's Action Alerts PLUS charitable trust, are rising after an analyst at Drexel Hamilton gave the stock a price target of $200. "With a recent earnings reset, a new iPhone cycle on the horizon with the iPhone 7, the ramp of Apple Watch, the potential for increased levels of cash paid out to shareholders and new geographic opportunities, we believe Apple represents one of the best values in the tech world," wrote analyst Brian J. White.
Fellow AAP holding Bank of America (BAC) is also climbing on heavy volume today, continuing to build on the momentum banking stocks built up late last week.
On the negative side of the market, Facebook (FB) shares are dropping on heavy volume despite no major news about the social media company.
Community Health Systems (CYH) shares are down 28% on heavy volume after reporting a quarterly loss of $0.28 per share, well below analysts' $0.88 per share profit expectations.
(Read Bruce Kamich's take on Community Health Systems.)
Finally, shares of communications service provider Gogo (GOGO) are down 30% after American Airlines (AAL) sued the company as it looks to switch its in-flight Internet service providers. According to an agreement between the two companies, American is allowed to terminate or renegotiate its contract with Gogo if it finds a competing company that offers superior service.
(Read James Passeri's comments on Gogo.)