Market Wrap: Fiscal Cliff May Affect U.S. Rating; Boeing Hits 737 Order Milestone; Zipcar Snatched Up; Solars Beam on Buffett

January 2, 2013 5:10 PM EST
Market wrap-up for January 2nd

End of the Day: S&P 500 up 36.2 to 1,462.42; Dow Jones up 308.4 to 13,412.55; Nasdaq up 92.8 to 3,112.26

The following is a brief summary of events moving markets today:

* Well, that was fun. Following a long and harrowed battle, lawmakers passed a deal to avert the fiscal cliff late Tuesday night, by a vote of 257-167. For more on the deal, click here.

A new challenge already awaits America: what to do about the debt ceiling. Treasury Secretary Tim Geithner said that the U.S. would hit the ceiling on December 31, 2012, and was putting in place measures for an extra $200 billion leeway. Estimates have that amount lasting two months, though it could be shorter under certain circumstances.

* Boeing Co. (NYSE: BA) received an order for 60 737 MAX airplanes from Aviation Capital Group (ACG). The order brings total 737 sales above 1,000 units. For more, click here.

* Moody's said further action might be taken on the rating of the U.S. government following passage of the fiscal cliff package on Tuesday. The agency warned that lack of action to reduce the deficit might have a negative effect. For more on Moody's expectations, click here.

* Avis Budget Group, Inc. (Nasdaq: CAR) and Zipcar, Inc. (Nasdaq: ZIP) announced that Avis Budget Group has agreed to acquire Zipcar for $12.25 per share in cash, or total transaction value of about $500 million. For more on the merger, click here.

* The Institute for Supply Management (ISM) purchasing-managers index (PMI) rose 1.2 points to 50.7 percent last month. The Street consensus called for a reading of 50.5 percent. The average reading over the last 12 months was 51.7 percent, with a high of 54.8 and low of 49.5 percent. For more color, click here.

* Solar stocks ended the session higher following an earlier release that Warren Buffett's MidAmerican Renewables will acquire the 579-megawatt Antelope Valley Solar Projects (AVSP) from SunPower (Nasdaq: SPWR). The deal could be valued up to $2.5 billion. For more color on the deal, click here.

* Private equity firm CVC Capital Partners (‘CVC') announced that it entered into an agreement to acquire Cerved for €1.13 billion (about $1.49 billion). Cerved is a provider of business credit information in Italy. For more on the deal, click here.

* Google (Nasdaq: GOOG) executive chairman Eric Schmidt is planning to make a trip to North Korea within the month. According to the AP, Schmidt will be making the trip with former New Mexico Governor Bill Richardson.

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