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Intel raised its quarterly dividend by 7.1 percent to $0.225 from $0.21, the firm's third increase in the past 18 months.
Vertex Pharmaceuticals skyrocketed after the biotechnology company's new cystic fibrosis drug showed positive results in a mid-stage study .
Groupon rallied after CEO Andrew Mason explained the daily deal website's plans to build a broad local-commerce platform.
Among earnings, Tyson Foods posted better-than-expected earnings, helped by price increases. In addition, the meat processor said it expects momentum to gain in the second half of the year.
Cognizant Technologies tumbled to lead the S&P 500 laggards after the IT consulting firm slashed its guidance.
Electronics Arts is scheduled to post earnings after the closing bell.
On the M&A front, Talbots received a raised takeover bid of $215 million , or $3.05 a share, from private equity firm Sycamore Partners. Sycamore had previously offered to pay $3 a share in December.
DigitalGlobe rejected a $792 million takeover offer from rival GeoEye saying the hostile bid substantially undervalued the satellite imagery company and its financial prospects.
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