Rainy Day: Rainy Day (1984)
Sadly, this baby is long out of print and doesn't stream anywhere in the known universe, so if you don't already own a copy and you're not down the block and able to borrow mine, you'll have to settle for a YouTube rip. Which you should do, because it's just great.
You've got Bangle Susannah Hoffs singing a stunningly beautiful version of Dylan's "I'll Keep It With Mine" (which I prefer over Nico's legendary take), as well the Velvet Underground's "I'll Be Your Mirror"; Kendra Smith of Dream Syndicate singing the Neil Young/Buffalo Springfield tune "Flying On The Ground Is Wrong" and Big Star's "Holocaust"; Michael Quercio of the Three O'Clock helming the Byrds' "John Riley" and the Beach Boys' "Sloop John B" (as well as a droning romp through Hendrix's "Rainy Day, Dream Away"); and David Roback of Rain Parade (and later Mazzy Star) taking lead on a partial cover of the Who's "A Quick One" and another Neil/Springfield cover, "On the Way Home").
Here's a rip of the whole album (with the break-out of each song's start time below):
3:25 John Riley
6:39 Flying On The Ground Is Wrong
9:59 Sloop John B.
14:22 Soon Be Home
22:25 On The Way Home
25:18 I'll Be Your Mirror
27:54 Rainy Day, Dream Away
Incidentally, these same bands regrouped for a small project last year, with the Rain Parade, the Bangles, the Dream Syndicate and the Three O'Clock each performing covers of the other bands' songs. And it's a delight; go buy it this very second before it, too, ends up out of print.