Stocks Surge on IBM Buyback

Techs bolster confidence on 3rd straight day of gains
By Sam Gale Rosen,  Newser Staff
Posted Feb 26, 2008 3:40 PM CST
The bull is back!   ((c) lemoncat1)
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(Newser) – A $15 million buyback by IBM plus today's good retail news and higher commodity prices set off a third straight day of stock market gains. IBM sparked a tech rally, including big gains by Intel and Microsoft, the Wall Street Journal reports. The Dow gained 114.7 to close at 12,684.92, the Nasdaq 17.51 to 2,344.99, and the S&P 500 9.49 to 1,381.29.

"It is showing that IBM believes its stock is a good value at this price and is confident it is going to have the cash flow to perform this buyback,'' a strategist told Bloomberg. Stocks had fallen earlier in the session on gloomy news from the Labor Department and the Conference Board on producer prices and consumer confidence.