A 1.1% increase in existing home sales lifted the markets to a higher open with the Dow rising 26 points to 24,488. Nasdaq gained 27 points to 7173.

On the upside

Vectren (NYSE: VVC) will be acquired by CenterPoint Energy for a premium of approximately $6 billion.

Stifel upgraded Hanesbrands (NYSE: HBI) from a Hold rating to a Buy rating and lifted its price target from $21.00 to $23.00.

Alaska Air Group (NYSE: ALK) reported better than expected earnings for the first quarter.

On the downside

Profit taking weighed down shares of Alcoa (NYSE: AA).

Subsea 7 made an unsolicited bid to acquire McDermott (NYSE: MDR) which may force the the cancellation of McDermott's deal to buy Chicago Bridge & Iron (NYSE: CBI).

Flotek Industries (NYSE: FTK) warned of lower revenue for the first quarter.

In the broad market, advancing issues were on par with decliners on the NYSE while advancers edged out decliners by a margin of nearly 6 to 5 on Nasdaq. The broader S&P 500 rose 5 points to 2,675. Bitcoin added $8 to $8,925.