United States stocks down after IBM, others report weak results

All in, IBM reported non-GAAP diluted earnings per share of $3.84, down 13% from the prior-year period.


(Open): Shares in IBM and United Technologies opened lower following disappointing results, pulling the Dow Jones lower. IBM (IBM) shares were down more than 4%. NYSE volume was again tracking higher, while Nasdaq trade was running lower compared with the same time Monday.

A handful of upbeat earnings from Internet and technology companies have buoyed the Nasdaq Composite, including results from Google Inc. and Netflix Inc. last week.

Harley-Davidson (HOG – Get Report) gained 3.4% despite a drop in quarterly motorcycle sales. Apple and Microsoft were among the other big-name companies reporting earnings later in the day. GoPro Inc., which tends to see big swings in shares after earnings and is a member of the Nasdaq Composite, also reports Tuesday afternoon. The Standard & Poor’s 500 index slipped less than one point to 2,127.

Stocks on both sides of the Atlantic have rebounded in recent sessions after Greece secured a new bailout from its creditors. The stock added $2.32, or 4.2 percent, to $57.26.

“For the first time in a while, fundamentals seem to be driving the action today in an otherwise very quiet macro backdrop and probably will continue to do so for the next couple of weeks as we work through the heart of earnings season”, said Ryan Larson, head of USA equity trading at RBC Global Asset Management in Chicago. “There’s nothing to watch other than earnings”, he said.

European shares fell slightly.

MARKETS OVERSEAS: In Europe, Germany’s DAX was down 1.1 percent, while the CAC-40 in France fell 0.7 percent. Second-quarter revenue from continuing operations slid 13% year over year (down 1% when adjusted for currency moves and the 2014 divestitures) to $20.8 billion. In Asia, Japan’s Nikkei 225 added 0.9 per cent and South Korea’s Kospi gained 0.5 per cent. Hong Kong’s Hang Seng rose 0.6 per cent. The Shanghai Composite Index in mainland China rose 0.6 per cent.


Treasury prices fell, pushing the yield on the 10-year note up to 2.390% from 2.372% on Monday.

Most Asian stock markets were modestly higher Tuesday after positive U.S. earnings reports boosted sentiment