US STOCKS-Wall Street adds to recent rally on Mexico relief, deal optimism

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* Trump scraps tariffs as Mexico vows to tighten borders
* U.S. carmakers, Constellation Brands rise
* United Tech, Raytheon agree to merge; Salesforce to buy
Tableau
* Indexes up: Dow 0.6%, S&P 0.7%, Nasdaq 1.4%

(Updates to late afternoon)
By Caroline Valetkevitch
NEW YORK, June 10 (Reuters) - U.S. stocks extended their
recent climb on Monday, with the Dow on track for a 6th straight
day of gains after the United States dropped plans to impose
tariffs on Mexican goods and after a couple of
multibillion-dollar deals.
The recent gains put the S&P 500 index roughly 2% shy of its
early May record high, while the Dow was set to register its
longest winning streak in about 13 months.
Mexico on Friday agreed to step up efforts to stem the flow
of illegal Central American migrants after Washington threatened
to impose a 5% import tariffs on all Mexican goods starting
Monday. Among major deals, United Technologies Corp UTX.N agreed
to combine its aerospace business with defense contractor
Raytheon Co RTN.N to create a new company worth about $121
billion. While strategists said the trade news was behind much of the
day's gains, some said they feared the market had been rallying
too much on hope of what may come on the trade front and from
the Federal Reserve.
"(The) market is really optimistic. We've had a tremendous
rally in the span of five to six days," said Michael O'Rourke,
chief market strategist at JonesTrading in Greenwich,
Connecticut.
"There is a risk that the market will be disappointed if the
Fed does not signal some type of rate cut," he said.
Hopes that the Fed, which meets next week, would turn more
accommodative to blunt the impact of escalating trade tensions
have helped support stocks in recent days.
The Dow Jones Industrial Average .DJI rose 148.01 points,
or 0.57%, to 26,131.95, the S&P 500 .SPX gained 21.07 points,
or 0.73%, to 2,894.41 and the Nasdaq Composite .IXIC added
109.27 points, or 1.41%, to 7,851.37.
Shares of United Technologies, however, dropped 2.4%, after
Trump said he was a "little concerned" about their merger as it
could take away competition in the sector. Raytheon rose 1.2%.
Salesforce.com Inc CRM.N said it would buy big data firm
Tableau Software DATA.N for $15.3 billion. Salesforce.com
shares fell 5.7%, while those of Tableau surged 33%.
U.S. automakers, which have long built vehicles in Mexico,
traded higher, with General Motors Co GM.N gaining 1.6% and
Ford Motor Co F.N 0.7%. Corona beer maker Constellation Brands
STZ.N , which has significant Mexico exposure, rose 2.4%.
Advancing issues outnumbered declining ones on the NYSE by a
1.79-to-1 ratio; on Nasdaq, a 2.01-to-1 ratio favored advancers.
The S&P 500 posted 62 new 52-week highs and two new lows;
the Nasdaq Composite recorded 96 new highs and 49 new lows.