After showing a notable upward move in early trading on Tuesday, stocks have continued to perform well over the course of the trading day. While the markets have not seen much follow-through on the initial upward move, they have held on to the bulk of the gains.
The major averages have been stuck in a narrow range throughout the afternoon, hovering in positive territory. The Dow is up 43.17 points or 0.3 percent at 12,727.85, the Nasdaq is up 16.65 points or 0.6 percent at 2,859.90 and the S&P 500 is up 6.83 points or 0.5 percent at 1,353.12.
The early strength in the markets was partly due to additional activity on the merger-and-acquisition front, with the recent string of multi-billion acquisition agreements seen as a sign of corporate confidence in the economic outlook.
Before the start of trading, software giant Microsoft (MSFT) announced that it has agreed to acquire Internet communications company Skype for $8.5 billion in cash. Microsoft is acquiring the company from an investor group led by Silver Lake.
Microsoft said that the acquisition will generate significant new business and revenue opportunities by increasing the accessibility of real-time video and voice communications. The company said Skype will support Microsoft devices like Xbox and Kinect and Windows Phone.
In other M&A news, CKx, Inc. (CKXE) said that it has agreed to be acquired by an affiliate of Apollo Global Management for $5.50 per share or about $510 million in cash. The offer represents a 23.6 percent premium to CKx's closing price on Monday.
Some positive sentiment was also generated by news that China reported an $11.4 billion trade surplus for the month of April compared to economist expectations for a much more modest surplus of $3.2 billion.
China said its exports surged up by 29.9 percent year-over-year, reflecting strong global demand. The data has led to renewed confidence in the outlook for the global economy.
In U.S. economic news, the Labor Department said import prices climbed by 2.2 percent in April compared to a revised 2.6 percent increase in March. This marks the first time import prices have increased by more than 2 percent in two consecutive months since June 2008.
The cost of imported fuel, up 6.7 percent in April, accounted for approximately 80 percent of the overall increase in import prices. Excluding fuel imports, import prices edged up by a more modest 0.6 percent.
The report also showed that export prices increased by 1.1 percent in April following a 1.5 percent increase in March.
Separately, the Commerce Department said wholesale inventories increased by 1.1 percent in March following a 1.0 percent increase in February. The report also showed that wholesale sales surged up by 2.9 percent in March after edging down by 0.3 percent in the previous month.
Dow Components
A vast majority of the thirty Dow components are trading higher in the mid-afternoon, although most are posting relatively modest gains, limiting the upside for the blue chip index.
Entertainment Disney (DIS) is turning in one of the Dow's best performances ahead of the release of its quarterly results after the close of trading. Shares of Disney are currently up by 1.3 percent, on pace for their best closing price in two months.
Tech giants Intel (INTC), Cisco (CSCO), and Hewlett-Packard (HPQ) are also showing strong moves to the upside, with all three stocks advancing by more than 1 percent.
While General Electric (GE) and Pfizer (PFE) are also posting notable gains, shares of Microsoft are down by 1.2 percent on the news of its acquisition of Skype.
Sector News
Airline stocks continue to turn in some of the market's best performances, with the NYSE Arca Airline Index up by 1.1 percent after falling by 1.5 percent on Monday. US Airways (LCC) and United Continental (UAL) are both advancing by 3.5 percent.
Considerable strength has also emerged among housing stocks, which are regaining some ground following recent weakness. The Philadelphia Housing Sector Index is currently up by 1 percent after ending the previous session at a two-month closing low.
Most of the other major sectors have also moved to the upside over the course of the session, with railroad, utilities, real estate, and electronic storage stocks turning in some of the best performances.
At the same time, modest weakness remains visible among gold stocks, which are moving lower even though gold for June delivery has risen $13.70 to $1,516.90 an ounce.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region close mostly higher on Tuesday, although the Hong Kong and South Korean markets were closed for public holidays. Japan's benchmark Nikkei 225 Index advanced by 0.3 percent.
The major European markets also showed notable moves to the upside on the day. The U.K.'s FTSE 100 Index rose by 1.3 percent, while the French CAC 40 Index and the German DAX Index advanced by 1.1 percent and 1.2 percent, respectively.
In the bond market, treasuries have shown a notable move to the downside on the day, pulling back off their recent highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is currently up by 4.4 basis points at 3.186 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.