IBM Gives Stock Market Hope

At least in tech
By Kevin Spak,  Newser Staff
Posted Jan 21, 2009 8:47 AM CST
Traders watch the inaugural speech of President Barack Obama on the floor of the New York Stock Exchange Tuesday, Jan. 20, 2009.   (AP Photo/Richard Drew)
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(Newser) – Stocks bounced back at the open this morning, as tech sector hope outpaced financial sector gloom. The Dow climbed 126 points, while the Nasdaq and S&P jumped 2% and 1.7% respectively. IBM was the star of the show, after posting a 12% surge in fourth-quarter profits and an upbeat 2009 outlook. Its shares jumped more than 8%. United Technologies likewise had a fine quarter, with its 8% profit jump beating estimates by a penny.

Financial earnings, on the other hand, were less cheery, with BlackRock’s income plunging 84%, and US Bancorp’s earnings down 65%. Northern Trust and Hudson City Bancorp, meanwhile, managed largely positive quarters. Yesterday the financial sector as a whole skidded 17% amidst the Dow’s worst Inauguration Day ever.