NEW YORK, July 15 (Reuters) - Stocks rose on Wall Street as weaker-than-expected inflation data and a strong start to the second-quarter earnings season prompted investors to buy.

The three main indices closed slightly higher despite weakness in the semiconductor sector, with the retail and travel and entertainment sectors clearly outperforming.

Shares of PayPal surged after sources told Reuters that Stripe and private equity firm Advent International had made a joint bid to acquire the company at $60.50 per share, representing a premium of approximately 28 percent over Tuesday's closing price.

The second day of strong bank earnings added momentum to the promising start to the second quarter earnings season.

Both BlackRock and Morgan Stanley exceeded quarterly earnings expectations.

"Everything looks great with regard to bank earnings," said Mike Dixon, head of portfolio management at Horizon Investments in Charlotte, North Carolina. "I wouldn't be surprised at all if we saw another quarter of massive profits."

The latest data from the London Stock Exchange Group indicates that analysts currently expect the S&P 500 index to grow by 23.7 percent year-on-year in the second quarter.

According to preliminary data, the S&P 500 rose 29 points, or 0.38 percent, to close at 7572.59, while the Nasdaq Composite gained 161.87 points, or 0.62 percent, to 26268.88. The Dow Jones Industrial Average climbed 155.53 points, or 0.30 percent, to 52663.80.