The weekend is over and stocks in the US are mixed, with IBM dragging down the Dow.
In early trade on Monday, the Dow was down 78 points, the S&P 500 was up 2 points, and the Nasdaq was up 15 points.
The biggest story on Monday is IBM, which reported worse than expected quarterly results and in early trade on Monday was down about 8%.
The Dow, which is a price-weighted index — meaning that the price of a company’s stock, not its market cap, determines its weigh in the Dow — every 1-point decline in an individual stock takes 6.42195 points off the broader index.
IBM was down a bit over $US13 on Monday, making it responsible for roughly 85 points of the Dow’s decline.
For its fiscal third quarter, IBM reported earnings per share of $US3.68 against expectations for $US4.32, while the tech giant also reported revenue that decline 4% year-over-year to $US22.4 billion.
The worst part of IBM’s report, however, was the comment from IBM chairwoman Ginni Rometty that said, “We saw a marked slowdown in September in client buying behaviour, and our results also point to the unprecedented pace of change in our industry.”
IBM also announced that GLOBALFOUNDRIES would acquire its Microelectronics Business for $US1.5 billion.
Also in tech earnings, Apple is set to report its quarterly results after the market close on Monday. You can read Jay Yarow’s full preview here.