US stocks move mostly higher in afternoon trading; IBM's results miss the mark, shares plunge



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NEW YORK — U.S. stocks moved mostly higher Monday following a turbulent week. IBM fell sharply after reporting results that missed investor expectations.

KEEPING SCORE: The Dow Jones industrial average lost 35 points, or 0.2 percent, to 16,345 as of 1:35 p.m. Eastern. The Standard & Poor's 500 index rose 10 points, or 0.5 percent, to 1,897 and the Nasdaq composite was up 35 points, or 0.8 percent, to 4,293.

BIG BLUE'S RED DAY: IBM was the main reason the Dow was down Monday, because of IBM's size and high share price. The Dow is what's known as a price-weighted stock index, which means more expensive stocks like IBM tend to have an out-sized impact on its movements.

IBM fell $12.40, or 7 percent, to $169.63 after the company reported earnings that missed Wall Street's expectations. The company also missed on revenue and warned that it may not meet its profit goals for the foreseeable future. IBM was the biggest decliner in both the Dow and in the S&P 500.

RELATIVE CALM: The quiet trading on Wall Street came after a wild ride last week, when the Dow moved between triple-digit losses and triple-digit gains. Investors remain concerned that economic weakness in Europe could spread to the U.S. Many investors remain bullish on the U.S. stock market over the long term, especially considering how well the U.S. economy has been doing.

"The recent sell-off could get worse before it gets better. However, in our opinion, the current downturn is unlikely to develop into a more sustained correction or a break in the secular bull market we have experienced over the past five years," said Anne Symanovich, a senior investment research analyst at Wells Fargo, in a note to investors.

The calm can be seen in the VIX, Wall Street's so-called "fear index," which was down another 10 percent to 19, closer to its recent average of 15. The index rose as high as 30 last week.

BUSY WEEK: This is one of the busiest weeks for company earnings. A total of 130 companies in the S&P 500 index will report their quarterly results, including big names like American Express, Cola-Cola and AT&T. Apple, which will release its earnings report after the stock market closes, rose $1.49, or 1.5 percent, to $99.16.

ENERGY: One symptom of the concerns over the global economy has been the sharp fall in oil prices in recent weeks. U.S. benchmark crude edged up eight cents to $82.15 a barrel in New York. Brent crude fell 31 cents to $85.83 a barrel.

JAPANESE RALLY: Japan's Nikkei had its biggest rally of the year Monday, gaining 4 percent. The rally comes after a report that the Government Pension Fund will increase its holdings of Japanese stocks to 25 percent from 12 percent. South Korea's Kospi was up 1.6 percent at 1,930.06 and Hong Kong's Hang Seng added 0.2 percent to 23,070.26.

BONDS: U.S. government bond prices didn't move much. The yield on the 10-year Treasury note held steady at 2.19 percent.

METALS: Gold rose $5.70 to $1,244.70 an ounce. Silver rose two cents to $17.35 an ounce and copper fell two cents to $2.99 a pound.

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