Records have become commonplace on Wall Street lately, and Tuesday was no exception. Generally favorable sentiment from investors helped send some market benchmarks toward unprecedented heights. As of 11:30 a.m. EDT, the Dow Jones Industrial Average (^DJI 1.03%) was up 69 points to 35,405. The S&P 500 (^GSPC 1.86%) was in line for a new record, gaining 12 points to 4,491, and the Nasdaq Composite (^IXIC 3.07%) had also climbed further into record territory with a 68-point rise to 15,011.
Gains have been widespread across the market, and Tuesday's action only confirmed the breadth of the recent rally. Alibaba Group Holding (BABA 11.76%) is a household name around the world, while most investors have probably never heard of Triple-S Management (GTS). Both, however, made notable moves higher that showed just how bullish the current environment is across the economy.
Alibaba bounces back
Shares of Alibaba were higher by nearly 7% on Tuesday morning. The Chinese internet giant had lost half its value since October, but traders seem to believe the decline presents a buying opportunity for value-hunting investors.
Alibaba has had to deal with considerable uncertainty lately. On one hand, Chinese regulators appear to be clamping down on some of the biggest tech companies in the country, as they appear to see Alibaba and its peers as potential threats to the way they govern the world's most populous nation. Meanwhile, in the U.S., lawmakers have considered strict restrictions on Chinese companies that could potentially even include delisting their shares from U.S. stock exchanges.
That said, Alibaba's business has continued to thrive. Revenue in its most recent quarter jumped 34% from year-ago levels. Despite rising competition on the e-commerce front, Alibaba's initiatives in cloud computing and extensive activity in making strategic acquisitions look likely to pay off in the long run.
Chinese stocks have presented challenges for U.S. investors for a long time. In Alibaba's case, however, there are many things to like about the internet giant's fundamental business prospects.
A big buyout for Triple-S
Elsewhere, Triple-S Management enjoyed gains of more than 45% on Tuesday morning. The Puerto Rico-based provider of managed healthcare products and similar services soared after receiving a buyout bid from an industry peer.
GuideWell Mutual, which is the parent company of Blue Cross and Blue Shield of Florida, agreed to acquire Triple-S in a deal valuing Triple-S at roughly $900 million. As part of the deal, Triple-S shareholders will receive $36 per share in cash from GuideWell.
The merger will help GuideWell extend its already impressive reach across the U.S., which includes 45 million people across 45 states. GuideWell's presence in Florida is especially impressive, making up 5 million members of its overall network. In that context, Triple-S and its roughly 1 million consumers in Puerto Rico might not seem to be all that significant, but Triple-S' leadership position in the Medicare Advantage and Medicaid markets makes it an attractive pickup for GuideWell.
As a not-for-profit holding company, GuideWell will have to take a slightly different approach to Triple-S' business from how the for-profit business operated. Nevertheless, shareholders are pleased to be getting a nice premium for their shares.