Stocks Return to Soaring — Tuesday’s IP Market Recap

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

InvestorPlace 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 As of this writing, he was long MSFT.

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  2. Monday’s one-day drop:
  3. BAC:
  4. JPM:
  5. AXP:
  6. $24.4 billion leveraged buyout:
  7. DELL:
  8. founder and CEO Michael Dell:
  9. Dell corporate partner:
  10. MSFT:
  11. HPQ:
  12. VMED:
  13. LBTYA:
  14. $24 billion buyout:
  15. MHP:
  16. accused Standard & Poor’s of fraud:
  17. MCO:
  18. Real America Index:
  19. CMI:
  20. RL:
  21. ORLY:
  22. BKS:
  23. BBRY:
  24. EA:
  25. BIDU:
  26. YUM:
  27. Read m0re here:
  28. STZ:

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