Stocks began the New Year just like they finished the old, with a big rally after Congress pulled the country back from a fall over the so-called 'fiscal cliff'. The primary market gauges pulled back slightly from their best levels near the close but still finished with broad-based gains, as the Dow closed up 2.35%, or more than 308 points for its biggest one-day gain since December of 2011. Technology stocks outperformed the already rapid pace for equities, carrying the Nasdaq Composite to a 3.07% advance. Commodities, including crude oil, also rose briskly.
Asian and European markets turned solidly higher after the U.S. House of Representatives late Tuesday voted to approve legislation locking in Bush-era tax cuts for couples making less than $450,000 a year while postponing scheduled spending cuts for at least two months. The U.S. markets also got a boost from a spate of year-end deal-making, including a $500-million bid for car-sharing service Zipcar Inc. (ZIP) by Avis Budget Group (CAR).
Manufacturing Up
Stocks also got a boost from mostly positive economic reports, with the Institute for Supply Management's reporting its index of purchasing managers rose to a 50.7 reading last month from a 49.5 score in November. Numbers over 50 indicate more companies are expanding instead of shrinking. Economists surveyed by MarketWatch had forecast the index to rise to 50.5.
In a separate report, construction spending fell by 0.3% in November, likely reflecting a drop in activity due to Hurricane Sandy and missing expectations for a 0.6% increase.
Commodities ended mostly higher with crude oil for February delivery settling $1.30 higher to $93.12 per barrel. February natural gas was down 11.8 cents to $3.233 per 1 million BTU. February gold rose $12.20 to $1688.20 per ounce while March silver climbed 74 cents to $30.99 per ounce. March copper rose 8 cents to $3.73 per pound.
Here's Where The U.S. Markets Stood At Day's End
- Dow Jones Industrial Average up 308.41 (+2.35%) to 13,412.55
- S&P 500 up 36.23 (+2.54%) to 1,462.42
- Nasdaq Composite Index up 92.75 (+3.07%) to 3,112.26
- Hang Seng Index up 2.89%
- Shanghai China Composite Index up 1.60%
- FTSE 100 Index up 2.22%
- (+) GEVO, Authorizes $15-million stock repurchase program.
- (+) LPH, Raised FY13 EPS and revenue guidance, citing increased production from its new Huajie facility.
- (+) SGYP, Announces positive results from late-stage testing of its Plecanatide drug candidate to treat patients with chronic idiopathic constipation.
- (+) PATH, U.S. Patent & Trademark Office accepts the company's patent application for iontophoretic patches containing the company's proprietary hydrogel polyamine formulation as a migraine treatment.
- (+) BAC, Evercore Partners initiates coverage with Conviction Buy raing, calling the firm the top pick among large-cap banks for 2013, replacing Wells Fargo & Co. (WFC). WFC is up 2.1%.
- (+) SPWR, Sells 579-megawatt Antelope Valley Solar Projects in southern California to MidAmerican Renewables - a Berkshire Hathaway Inc. (BRK-A) subsidiary.
- (-) CBPO, Said construction of a new production facility could be delayed due to slower-than-expected government approvals.
- (-) DOLE, Said its fresh fruit business continues to experience "declining earnings in a continued difficult economic environment."
- (-) SKUL, Jefferies & Co. lowers the stock to Underperform from Buy, citing promotional pressures and rising competition.
- (-) TGT, Cut to Hold from Buy with a $59 a share price target at Jefferies after the discount chain said December sales will likely trail analyst estimates.