NEW YORK — The stock market had its third straight winning day Tuesday on signs that companies are becoming more optimistic about the economy.
The Dow Jones industrial average edged up 2 points but closed off its best levels. The Dow had managed to erase its losses for the year during trading but was down 22 points for 2010 by the close. Broader indexes pushed into the black for the year Monday and extended their gains Tuesday.
More merger activity and a plan by Qualcomm Inc. to buy back stock brought reassurance that business leaders expect the recovery to continue. The economy’s health had been in doubt in recent months after reports indicated the pace of improvement was slowing and as countries including Greece struggled with heavy debt loads.
In deal news, CF Industries made a new offer for fertilizer maker Terra Industries, which last month agreed to be sold to Norway’s Yara for $4.1 billion. Dow Chemical Co. sold its Styron plastics business to private-equity firm Bain Capital for $1.63 billion. Investors often see takeovers as signs of confidence in the economy.
Meanwhile, Qualcomm said it would buy back $3 billion in stock and raise its dividend by 12 percent. Shares of the maker of wireless chips and other mobile technology rose 6.7 percent.
Markets got a lift from upbeat economic reports abroad and growing hopes that European leaders will come up with a bailout for Greece. The Greek government is scheduled to detail deeper spending cuts today.
The Dow rose 2.19, or less than 0.1 percent, to 10,405.98. It is up 85 points in three days and is at its highest level since Jan. 20.
The broader Standard & Poor’s 500 index rose 2.60, or 0.2 percent, to 1,118.31, and the Nasdaq rose 7.22, or 0.3 percent, to 2,280.79.
Bond prices were little changed. The yield on the benchmark 10-year Treasury note was flat at 3.61 percent from late Monday.
