By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rose on
Wednesday, adding to the previous session's solid gains, as Bank of
America Corp.'s positive earnings results and Apple Inc.'s deal
news lifted sentiment.
The S&P 500 index (SPX) rose 9 points, or 0.5%, to 1,848.10
and at one point hit a record intraday high. The benchmark is
trading near the record levels reached on Dec. 31.
The Dow Jones Industrial Average(DJI) added 118 points, or 0.7%,
to 16,491.78.
The Nasdaq Composite(RIXF), the best-performing index, rose 26
points, or 1%, to 4,209.45. The tech-heavy index turned positive
for the year after sharp gains on Tuesday.
Upbeat earnings results from Bank of America (BAC) drove gains
among the financials sector of the S&P 500. The bank's
fourth-quarter earnings topped analysts' expectations and shares
rose 2.8%. Follow the live blog of Bank of America's earnings
call.
Apple Inc. (AAPL) shares rose 1.9% after the chairman of China
Mobile Ltd. said the company's recent deal with Apple will entail
broad cooperation between the two. He also said millions of iPhones
have already been ordered by customers, signaling strong demand for
the device. Apple's Chief Executive Officer Tim Cook said he was
"incredibly optimistic" about the outcome of cooperating with the
Chinese carrier.
In economic news, the Federal Reserve Bank of New York's report
showed manufacturing activity in the New York region surged in
January, far more than anticipated, after three months of weak
readings.
Separately, U.S. wholesale prices rose in December for the first
time in three months, largely reflecting higher costs of gasoline
and tobacco, the Labor Department said. The gains were higher than
economists expected.
Investors will be looking to see if the Beige Book, due to be
published at 2 p.m. Eastern time, gives off a positive vibe over
the economy. They will also look for more insight on the fate of
quantitative easing from the Fed officials due to speak later on
Wednesday.
Jeffrey Kleintop, chief market strategist at LPL Financial, in a
research note wrote that the second-year curse may be a better
indicator to watch as to how the year may unfold.
"Year two of the presidential cycle has typically been a
volatile one for investors. Will the year-two curse repeat in 2014?
It may, particularly if a temporary economic soft spot develops in
the second quarter. Weak economic data readings led to 5% or more
pullbacks beginning in the spring of each of the past four years,"
Kleintop wrote.
Shares of General Motors Co. (GM.XX) fell 0.9% after the auto
maker said it sees "modest" 2014 North American market-share gains,
but it also forecast restructuring costs of $1.1 billion for this
year. GM said after the market closed Tuesday that it would pay a
dividend this March, the first since May 2008.
Aeropostale Inc. (ARO) shares jumped 4.8%. The teen retailer has
reportedly reached out to at least two private-equity firms to
check interest in a sale but isn't currently in negotiations,
according to Bloomberg News.
Shares of Tesla Motors Inc. (TSLA) rose 3.7%. The electric-car
company's shares surged 16% Tuesday after the company said its
fourth-quarter sales and deliveries came to "almost" 6,900, beating
its own expectations by 20%. The company also disclosed it would
recall up to 29,222 2013 Model S cars because of adapter
issues.
PetSmart Inc. (PETM) shares fell 1.5%. Joseph O'Leary, the
company's chief operating officer and president, is set to retire
this year and the company said Tuesday it won't fill the chief
operating officer position. Instead, the chief executive will take
on the additional title of president as the company reorganizes its
leadership structure.
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