Stocks Return to Soaring — Tuesday’s IP Market Recap

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

Stocks Return to Soaring — Tuesday’s IP Market Recap

IPMarketRecap Stocks Return to Soaring    Tuesday's IP Market Recap[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

Three Down

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

Endnotes:
  1. [Image]: http://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. Monday’s one-day drop: http://investorplace.com/2013/02/daily-stock-market-news-markets-reversal-could-last-1-2-weeks/
  3. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  4. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  5. AXP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AXP
  6. $24.4 billion leveraged buyout: http://investorplace.com/2013/02/dell-to-go-private-in-24-billion-buyout/
  7. DELL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DELL
  8. founder and CEO Michael Dell: http://investorplace.com/2013/01/why-would-michael-dell-spend-more-dell-money-to-buy-dell/
  9. Dell corporate partner: http://investorplace.com/2013/02/what-would-microsoft-want-with-dell/
  10. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  11. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  12. VMED: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMED
  13. LBTYA: http://studio-5.financialcontent.com/investplace/quote?Symbol=LBTYA
  14. $24 billion buyout: http://investorplace.com/2013/02/liberty-in-talks-to-buy-virgin-media/
  15. MHP: http://studio-5.financialcontent.com/investplace/quote?Symbol=MHP
  16. accused Standard & Poor’s of fraud: http://investorplace.com/2013/02/sp-accused-of-fraud-over-ratings/
  17. MCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCO
  18. Real America Index: http://investorplace.com/real-america-index/
  19. CMI: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMI
  20. RL: http://studio-5.financialcontent.com/investplace/quote?Symbol=RL
  21. ORLY: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORLY
  22. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  23. BBRY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBRY
  24. EA: http://studio-5.financialcontent.com/investplace/quote?Symbol=EA
  25. BIDU: http://studio-5.financialcontent.com/investplace/quote?Symbol=BIDU
  26. YUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=YUM
  27. Read m0re here: http://investorplace.com/2013/02/pizza-hut-rolls-out-tiny-new-menu-item/
  28. STZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=STZ

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