Benchmark indexes moved off of session highs Tuesday as excitement over oil production cuts subsided. 

The S&P 500 added 0.8% on Tuesday, the Dow Jones Industrial Average was up 0.54%, and the Nasdaq jumped 1.3%.

Crude oil turned lower despite an initial surge on news Russia and several key Organization of Petroleum Exporting Countries agreed to a production freeze. Russia's energy minister said the country agreed with Saudi Arabia, Qatar and Venezuela to freeze oil production levels if other producers follow suit.

"On the surface it appears to be a landmark agreement," said Robbie Fraser, commodity analyst at Schneider Electric. "However, a closer examination reveals that the agreement is unlikely to aid a market that remains chronically oversupplied. For an OPEC production freeze to have any meaningful long-term impact on the market it would likely need to incorporate 2015's production growth leader (Iraq), as well as the expected source of production growth for the year ahead (Iran)."

The closed-door meeting in Qatar's capital of Doha came as oil prices plumbed new 13-year lows on record production levels, global oversupply, and signs of weaker demand. Reports suggested Iran will not agree to such production cuts. West Texas Intermediate crude oil fell 1.7% to $28.95 a barrel.

Manufacturing activity in the New York region improved modestly in February, though remained in contraction for the seventh straight month. The Empire State Manufacturing Survey narrowed to a reading of negative 16.6 this month after a reading of negative 19.4 in January. However, economists expected conditions to improve to a reading of negative 12. 

Sentiment among homebuilders fell further from 10-year highs in February, according to the National Association of Home Builders. A read on sentiment fell 3 points to 58 this month as builders responded to consumer worries over the economy. The index climbed to its highest level in a decade in October.  

Chinese shares led Asian markets higher on their second day back from a week-long break. The Shanghai Composite closed 3.3% higher on Tuesday. Chinese markets had been closed in celebration of the Lunar New Year. Hong Kong's Hang Seng climbed more than 1%.

Home security company ADT (ADT - Get Report) surged 50% after agreeing to be acquired by private-equity firm Apollo Global Management. The all-cash deal worth $42 a share values ADT at a 56% premium to its closing price last week.

Pfizer (PFE - Get Report) shares were nearly 1% higher despite the company revising its fourth-quarter results lower after settling claims over its Medicaid rebates. The drugmaker said it lost 3 cents a share in its fourth quarter, down from previously reported profit of 10 cents a share.

Groupon (GRPN - Get Report) added more than 30% after a new securities filing from Alibaba (BABA - Get Report) showed the Chinese e-commerce site owning 33 million shares, worth a total stake of $95 million. Investors hope the 5.6% stake leads to possible sale talks.

Hormel Foods (HRL - Get Report) climbed 1.5% after nearly doubling quarterly profit. The food company generated earnings of 43 cents a share, above consensus of 37 cents a share. Hormel also boosted its full-year earnings guidance.

Zoetis (ZTS - Get Report) shares were on watch after the animal-health company reported a better-than-expected fourth quarter. However, the company did cut its sales estimates as a stronger U.S. dollar continues to eat into total revenue.