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US Stocks: Wall Street stages a broad market rally

AAPL, XLK, TSM, VECO, XLF, C, XLB, X, MTL, XRT, KSS, M, AEO, ZIP, CAR, HTZ

Apple NASDAQ:AAPL 549.03, +16.86 added 3.2% as the largest tech company traded in-line with the remainder of the sector.

US stocks finished Y 2012 with the S&P 500 up 13.1 on the year, the DJIA gained 7.3% and the NAS gained 15.9%.

DJIA 13412.55+308.41 (2.35%) NAS 3112.26+92.75 (3.07%) S&P 5001462.42+36.23 (2.54%)
The S&P 500 rang in this New Year with a 2.5% rally after the United States Congress approved measures to avoid a dive off of the Fiscal Cliff.

Volume was heavy, with about 7.8-B/shrs traded on the NYSE, the NYSEArca, and the NAS, well above the Y 2012 daily average of 6.42-B/shrs.

The $109-B sequester has been delayed for 2 months, as the focus will now turn to raising the debt ceiling, another lengthy debate is likely in store.

Shares of Zipcar Inc NASDAQ:ZIP surged 47.8% to 12.18 after Avis Budget Group Inc NASDAQ:CAR said it would buy Zipcar for about $500-M in cash to compete with larger rivals Hertz NYSE:HTZ, and Enterprise Holdings Inc. Avis advanced 4.8% to 20.77.

Technology stocks were among today’s top performers, and the SPDR Technology Select Sector ETF NYSEArca: XLK 29.81, +0.96 settled higher by 3.3%.

Semiconductor manufacturers outperformed the broader market and the PHLX Semiconductor Average rose by 4.1%. All 30 names that make up the complex advanced, and Wednesday’s strength lifted the average to its best spot since late September.

Among individual producers, Taiwan Semiconductor NYSE:TSM 18.10, +0.94, and Veeco Instruments NASDAQ:VECO 31.17, +1.68 both gained near 5.5%.

As expected, financials saw broad strength after Congress passed a budget package to avoid a dive off of the Fiscal Cliff.

The SPDR Financial Select Sector ETF NYSEArca:XLF 16.86, +0.48 settled higher by 2.9%, and was among the top performing sector ETFs. Among the majors, Citigroup NYSE:C 41.25, +1.69 rose 4.3%, and outperformed its peers.

The materials sector was also a notable beneficiary of the market rally, and the SPDR Materials Select Sector ETF NYSEArca:XLB 38.48, +0.94 gained 2.5%.

The strength resulted from Tuesday’s budget pact as well as recent Chinese economic data, which has allayed some fears regarding a possible slowdown there. An increase in the country’s economic activity augurs well for materials demand especially steel.

As such, steelmakers outperformed the sector. Mechel Steel NYSE:MTL 7.33, +0.40, and United States Steel NYSE:X 25.89, +2.04 saw respective gains of 5.9% and 8.6%.

Despite the broad market rally, retailers lagged ahead of Thursdays December same store sales reports.

Early indications have suggested consumers showed more caution with regards to their spending habits during the recent holiday season.

As such, the SPDR S&P Retail ETF NYSEArca: XRT 62.85, +0.47 added 0.8% after being up as much as 2.2% at the open.

Among individual retailers, Kohl’s NYSE:KSS 42.21, -0.77, and Macy’s NYSE:M 38.31, -0.71 lost 1.8% each. Earlier, Buckingham downgraded Kohl’s to ‘Neutral’ from ‘Buy.’ American Eagle Outfitters NYSE:AEO 20.08, -0.43 slipped 2.1% after Jefferies downgraded the stock to ‘Hold’ from ‘Buy.’