Investing.com -- U.S. stocks rose modestly on Tuesday extending sharp gains from one session earlier, as the timing of a rate hike by the Federal Reserve and a potential breakthrough in Greek Debt negotiations remained in focus.
The Dow Jones Industrial Average and the S&P 500 Composite posted slight increases in Tuesday's sessions, paring earlier profits amid a continuing rise in financial stocks. The NASDAQ Composite index, meanwhile, set an all-time closing high for the second straight session following strong moves by Facebook Inc (NASDAQ:FB), Tesla Motors Inc (NASDAQ:TSLA) and Amazon.com Inc (NASDAQ:AMZN). The Dow gained 0.13% or 24.29 to 18,144.07, closing at its highest level since May 29, while the NASDAQ added 6.13 or 0.12% to 5,160.10.
On the S&P 500, five of 10 sectors closed in the green as it rose 1.35 or 0.06% to 2,124.20. Stocks in the Telecommunications and Energy industries led, while stocks in the Utilities and Basic Materials sectors lagged. The S&P 500 remains roughly a dozen points away from eclipsing an all-time closing high reached earlier this spring.
The top performer on the Dow was UnitedHealth Group Incorporated (NYSE:UNH), which gained 2.23 to 1.85% to 122.48, as rumors continued to swirl of a major merger in the health care insurance industry. Last week, UnitedHealth Group reportedly approached Aetna Inc (NYSE:AET) on a deal valued at more than $40 billion. On Monday, reports surfaced that Connecticut-based Cigna Corporation (NYSE:CI) rejected a $47 billion takeover attempt by Anthem, while other reports have linked Aetna with Louisville-based Humana Inc (NYSE:HUM) in another deal, which could carry wide-ranging ramifications in the industry. UnitedHealth also announced on Tuesday that is parting ways with America's Health Insurance Plans, the industry's largest trade group, saying it no longer represents the best interests of its customers.
The worst performer was EI du Pont de Nemours and Company (NYSE:DD), which fell 1.34 to 1.91% to 68.65.
Also on Tuesday, Verizon Communications Inc (NYSE:VZ) said it completed its $4.4 billion acquisition of AOL weeks after the telecom giant purchased the New York-based media and tech firm at $50 per share. Shares in Verizon inched up 0.52% to 47.78, while shares in AOL Inc (NYSE:AOL) were flat at $49.99.
The biggest gainer on the NASDAQ was Facebook, which surged 3.14 or 3.71% to 87.88, after the social media site launched a new interactive ad campaign. Facebook opened Tuesday's session with a market cap above $238 billion, to rank in the top 10 of all stocks on Wall Street. By comparison, Facebook now has a larger market cap than that of Walmart (NYSE:WMT).
Amazon also gained 9.13 or 2.09% to 445.42, after it followed the lead of several other merchandisers by banning the sale of confederate flags. The ban came days after an assailant in Charleston, S.C, shot nine members of a church prayer group to death. The worst performer was Western Digital Corporation (NASDAQ:WDC), which tumbled 3.05 or 3.33% to 88.55.
The top performer on the S&P 500 was Freeport-McMoran Copper & Gold Inc (NYSE:FCX), one of the world's largest metal producers, which gained 0.74 or 3.79% to 20.14. The worst performer was ADT Corporation (NYSE:ADT), which fell 1.84 or 4.97% to 35.09, after an analyst reaffirmed their strong selling rating for the South Florida-based electronic security company.
On the New York Stock Exchange, advancers outnumbered decliners by an 1,827 to 1,302 margin.