Stocks Return to Soaring — Tuesday’s IP Market Recap

by Marc Bastow | February 5, 2013 4:52 pm

[1]After Monday’s one-day drop[2], investors poured back into stocks on strong corporate news as the market staged a broad rally Tuesday that carried the Dow Jones and S&P 500 back toward last week’s dizzying heights.

The Nasdaq ended the day as the biggest winner, improving 1.29% to end at 3,171.58. The S&P 500 rose 1.04% to 1,511.29, and the Dow — which saw a rise in all but two components — gained 0.71% to 13,979.30 after briefly rising above 14,000 in the afternoon.

Bank of America (NYSE:BAC[3]) led the way on the Dow with 3% gains, while sectormate JPMorgan Chase (NYSE:JPM[4], +2.3%), and financial services giant American Express (NYSE:AXP[5], +2.1%) followed closely behind.

After several weeks of speculation, we finally got the announcement of a $24.4 billion leveraged buyout[6] of computer maker Dell (NASDAQ:DELL[7]) helped spark momentum after several weeks of speculation on whether or not a deal could be arranged. The deal includes money from both founder and CEO Michael Dell[8] and Dell corporate partner[9] Microsoft (NASDAQ:MSFT[10]). DELL shares finished up more than 1%; MSFT was up fractionally. The deal also spurred shares of Hewlett-Packard (NYSE:HPQ[11]) to 2% gains after the company announced plans to go after Dell customers during the transition.

Shares of U.K. cable operator Virgin Media (NASDAQ:VMED[12]) rose nearly 18% after the company confirmed it has been approached by media billionaire John Malone’s Liberty Global (NASDAQ:LBTYA[13]) about a possible $24 billion buyout[14]. LBTYA shares declined 2% on the news.

Shares of McGraw-Hill (NYSE:MHP[15]) plunged more than 10% after the U.S. Justice Department accused Standard & Poor’s of fraud[16] over its ratings of subprime securities that turned out to be of lesser quality than advertised or marketed. Rating agency Moody’s (NYSE:MCO[17]) dropped as well, falling just more than 8% on the day.

Earnings notables for Wednesday include Real America Index[18] component Cummins (NYSE:CMI[19]), retailer Ralph Lauren (NYSE:RL[20]), and automotive parts supplier O’Reilly Automotive (NASDAQ:ORLY[21]).

Three Up

• Barnes & Noble (NYSE:BKS[22]): Up 7.3% (96 cents) to $14.21.
• BlackBerry (NASDAQ:BBRY[23]): Up 6.9% ($1.04) to $16.02.
• Electronic Arts (NASDAQ:EA[24]): Up 5.6% (89 cents) to $16.89.

Three Down

• Baidu (NASDAQ:BIDU[25]): Down 10.1% ($10.83) to $96.37.
• Yum! Brands (NYSE:YUM[26]): Down 2.9% ($1.86) to $62.08. (Read m0re here[27])
• Constellation Brands (NYSE:STZ[28]): Down 2% (64 cents) to $30.91.

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long MSFT.

Source URL: https://investorplace.com/2013/02/tuesdays-ip-market-recap-bac-jpm-axp-dell-msft-hpq/

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