Stocks Mostly Higher But IBM Continues To Weigh On Dow - U.S. Commentary

(RTTNews) - Stocks have moved mostly higher over the course of the trading day on Monday, extending the strong upward move that was seen last Friday. The major averages are currently turning in a mixed performance, however, with a steep drop by shares of IBM (IBM) weighing on the Dow.

While the Dow has climbed well off its worst levels of the day, the blue chip index remains down 26.22 points or 0.2 percent at 16,354.19. On the other hand, the Nasdaq is up 33.65 points or 0.8 percent at 4,292.09 and the S&P 500 is up 8.73 points or 0.5 percent at 1,895.49.

A steep drop by IBM is helping to keep the Dow in negative territory, with the tech giant down by 6.8 percent after hitting its lowest intraday level in three years.

The sharp pullback by IBM comes after the company reported third quarter earnings that fell year-over-year and came in well below analyst estimates.

IBM chairman, president and CEO Ginni Rometty expressed disappointment in the company's performance, citing a marked slowdown in client buying behavior in September.

Meanwhile, the strength being shown by the broader Nasdaq and S&P 500 may partly reflect bargain hunting following the sell-off seen over the past few weeks.

Traders may also be reacting positively to easing concerns about an Ebola outbreak in the U.S. amid news that forty-three people who came into contact with a patient that died of the disease have been officially cleared and released from quarantine.

The tech-heavy Nasdaq is also benefiting from a notable advance by shares of Apple (AAPL), with the iPhone and iPad maker climbing by 1.7 percent ahead of the release of its fourth quarter results after the close of trading.

Sector News

Airline stocks have shown a particularly strong move to the upside on the day, driving the NYSE Arca Airline Index up by 2.1 percent. With the gain, the index is climbing further off the nearly eight-month closing low it set last Monday.

Southwest (LUV) and SkyWest (SKYW) are turning in two of the sector's best performances, jumping by 4.9 percent and 4.3 percent, respectively.

Significant strength also remains visible among housing stocks, as reflected by the 1.5 percent gain being posted by the Philadelphia Housing Sector Index. Lennox (LII) is leading the sector higher after reporting better than expected third quarter earnings.

Gold stocks have also moved notably higher over the course of the session, benefiting from an increase by the price of the precious metal. With gold for December delivery climbing $5.90 to $1,244.90 an ounce, the NYSE Arca Gold Bugs Index is up by 1.2 percent.

Utilities, natural gas, and retail stocks are also seeing some strength on the day, while weakness is visible among railroad stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved to the upside during trading on Monday. Japan's Nikkei 225 Index surged up by 4 percent, while China's Shanghai Composite Index advanced by 0.7 percent.

Meanwhile, the major European markets all came under pressure on the day. While the U.K.'s FTSE 100 Index fell by 0.7 percent, the French CAC 40 Index dropped by 1 percent and the German DAX Index tumbled by 1.5 percent.

In the bond market, treasuries have pulled back near the unchanged line after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 2.192 percent.