MARKET SNAPSHOT: U.S. Stocks Rise On Strong B. Of A. Results, Data

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.

More stories from MarketWatch:

Jeffrey Gundlach: Treasurys are under-owned, bitcoin is a 'mirage'

If the market goes bust, don't blame boomers

Stock analyst herd mentality highest in nearly 30 years: B. of A.'s Subramanian

Subscribe to WSJ: http://online.wsj.com?mod=djnwires