Wall Street advanced sharply Monday, with solid preliminary results from IBM encouraging investors to go back into the stock market after...
NEW YORK — Wall Street advanced sharply Monday, with solid preliminary results from IBM encouraging investors to go back into the stock market after last week’s rout.
The Dow Jones industrial average gained 171.85 to 12,778.15.
Microsoft, one of the 30 Dow stocks, rose 48 cents to close at $34.39. Boeing, also a Dow stock, gained $1.15 to $81.67.
The Standard & Poor’s 500 index added 15.23 to 1,416.25 and the Nasdaq composite index shot up 38.36 to 2,478.30.
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IBM, also one of the 30 Dow industrials, released preliminary earnings estimates for the fourth quarter that were 24 percent above year-earlier levels. The results also beat the forecast of analysts surveyed by Thomson Financial.
“The market was pretty oversold,” said Richard Cripps, chief market strategist for Stifel Nicolaus. “We were due to bounce back, and the IBM news didn’t hurt.”
That news, coming as earnings season is about to get under way in earnest, did raise some hopes that fourth-quarter results might not be as bad as feared.
Investors also moved back into financial stocks ahead of Citigroup earnings today and Merrill Lynch’s report Thursday. It is expected both companies will announce further capital injections to stanch bigger-than-feared mortgage-related losses.
With no major economic data on the calendar, investors focused on corporate and commodities news.
Gold futures hit a record, briefly venturing above $913 an ounce as the dollar tumbled against other major currencies. Crude oil rose $1.51 to settle at $94.20 a barrel.