Stocks Pop to Open 2013 — Wednesday’s IP Market Recap

by Marc Bastow | January 2, 2013 4:58 pm

InvestorPlace Market Recap[1]BAM! How’s that for starting off the new year?

A New Year’s Eve bump in Monday’s trading was followed by a full-blown rally on Wednesday after lawmakers put the finishing touches on a bill to avert the fiscal cliff[2] late Tuesday.

The net result was all three indices finishing well in the black. The Nasdaq roared ahead 3.07% to finish at 3,112.26, the S&P 500 vaulted up 2.54% to 1,462.42, and the Dow — fueled by gains in every last component — gained 2.35% to close at 13,412.71.

The Dow was lifted higher by the likes of Caterpillar (NYSE:CAT[3]), which moved ahead more than 4%, while shares of aluminum producer Alcoa (NYSE:AA[4]) finished 3% better.

However, Hewlett-Packard (NYSE:HPQ[5]) led the Big Board with 5% gains, while fellow tech stocks Intel (NASDAQ:INTC[6], +3.7%) and Microsoft (NASDAQ:MSFT[7], +3.6%) frolicked along. Apple‘s (NASDAQ:AAPL[8]) 3% rise on the day was welcome news to the S&P and Nasdaq. Financial stocks thrived, too, with Citigroup (NYSE:C[9], +4.3%) and Bank of America (NYSE:BAC[10], +3.6%) leading banks higher.

Bridging tech and finance, credit card processors MasterCard (NYSE:MA, +3.9%) and Visa (NYSE:V, +2.5%) both hit all-time highs during the day.

Shares of ZipCar (NASDAQ:ZIP[11]) rocketed ahead nearly 50% after Avis (NASDAQ:CAR[12]) announced it will purchase[13] the car-sharing and hourly rental company supplier for $491 million, representing a 49% premium to Monday’s closing price. Shares of Avis finished up over 4% on the news.

However, bucking the day’s trend in a big way was headphone and audio accessories company Skullcandy (NASDAQ:SKUL[14]), which lost nearly 13% after getting pasted in a report[15] by Jefferies (NYSE:JEF[16]) that saw its rating fall from “buy” to “underperform.”

Three Up

Three Down

Marc Bastow is an Assistant Editor at As of this writing, he was long AAPL, MSFT and INTC.

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  2. a bill to avert the fiscal cliff:
  3. CAT:
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  10. BAC:
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  15. getting pasted in a report:
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  20. VVUS:
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