New York – Wall Street surged higher Wednesday, hurt ling the Dow Jones industrials past 12,500 for the first time as year-end bargain hunters picked up stocks across a variety of sectors.
The auto industry was in focus after a meeting between executives at Toyota Motor Corp. and Ford Motor Co. sparked hope about a potential alliance between the rivals. Shares of both companies moved higher.
Further takeover activity lent support to the overall market after McClatchy Co. announced late Tuesday that it agreed to sell the Star Tribune newspaper in Minneapolis to a private- equity fund.
Also, graphics-communication company Cenveo Inc. agreed to buy rival Cadmus Communications Corp.
But investors looking to buff up portfolios were behind most of the gains after major indexes languished last week.
“What you’re seeing is window dressing; people want to finish up the year looking like they own the best names,” said Philip Dow, managing director of equity strategy at RBC Dain Rauscher. “And for those that missed the market, they’re trying to put their cash to work and play catch-up. You’ve got momentum on your side this year.”
The session was again marked by thin volume typical of the week between Christmas and New Year’s. The New York Stock Exchange began the session with two minutes of silence as a tribute to former President Ford, who died Tuesday. The Nasdaq Stock Market had a similar observance later in the morning.
The Dow rose 102.94, 0.83 percent, to a closing record of 12,510.57. The index hit a record trading level of 12,519.22 earlier in the session.
Broader stock indicators also advanced. The Standard & Poor’s 500 index was up 9.94, 0.70 percent, at 1,426.84, and the Nasdaq composite index rose 17.71, 0.73 percent, to 2,431.22.
