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US stocks closes up 115 pts, IBM drives rally
A $15 billion stock buyback plan from International Business Machines drives a rally for blue-chips while Google continues its fall.
US stocks rose as a split in the technology sector deepened: A $15 billion stock buyback plan from International Business Machines drove a rally for blue-chips while Google continued its fall because of worries of a slowdown in the company's search-advertising business.
That tech sector rally skipped Google and other 2007 growth standouts "could be a function of a rising tide (that) lifts all ships except for those that have a hole in them - whether that's disappointing earnings news or disappointing clicks," said Todd Salamone, vice president of research at Schaeffer's Investment Research.
Elsewhere, more records for oil underscored inflation worries but helped Exxon Mobil, while some retailers such as Home Depot and builders such as Toll Brothers rose despite some dismal data.
The Dow Jones Industrial Average closed up 114.70, or 0.91%, to 12684.92; the technology-heavy Nasdaq Composite rose 17.51, or 0.75%, to 2344.99, and the Standard & Poor's 500 index added 9.49, or 0.69%, to 1381.29.
The top three percentage gainers on the DJIA Tuesday were all technology giants: IBM, Intel and Hewlett-Packard.
IBM rose 4.30, or 3.9%, to $114.38. The company unveiled plans for another $15 billion share buyback, saying the buyback activity would lift its earnings expectations for 2008 by up to 5 cents a share to at least $8.25 a share.
Big Blue plans to buy back up to $12 billion in stock this year - a significant chunk of its $150 billion in market capitali zation - on the heels of $18.8 billion in stock bought in 2007.
IBM currently holds the record for completed quarterly buybacks at $15.7 billion and ranks third in buybacks at $34.3 billion over the past three years, said Howard Silverblatt, senior index analyst at Standard & Poor's.US stocks closes up 115 pts, IBM drives rally
The Dow Jones Industrial Average closes up 114.70, or 0.91%, to 12684.92
New York, Dow Jones
US stocks rose as a split in the technology sector deepened: A $15 billion stock buyback plan from International Business Machines drove a rally for blue-chips while Google continued its fall because of worries of a slowdown in the company's search-advertising business.
That tech sector rally skipped Google and other 2007 growth standouts "could be a function of a rising tide (that) lifts all ships except for those that have a hole in them - whether that's disappointing earnings news or disappointing clicks," said Todd Salamone, vice president of research at Schaeffer's Investment Research.
Elsewhere, more records for oil underscored inflation worries but helped Exxon Mobil, while some retailers such as Home Depot and builders such as Toll Brothers rose despite some dismal data.
The Dow Jones Industrial Average closed up 114.70, or 0.91%, to 12684.92; the technology-heavy Nasdaq Composite rose 17.51, or 0.75%, to 2344.99, and the Standard & Poor's 500 index added 9.49, or 0.69%, to 1381.29.
The top three percentage gainers on the DJIA Tuesday were all technology giants: IBM, Intel and Hewlett-Packard.
IBM rose 4.30, or 3.9%, to $114.38. The company unveiled plans for another $15 billion share buyback, saying the buyback activity would lift its earnings expectations for 2008 by up to 5 cents a share to at least $8.25 a share.
Big Blue plans to buy back up to $12 billion in stock this year - a significant chunk of its $150 billion in market capitali zation - on the heels of $18.8 billion in stock bought in 2007.
IBM currently holds the record for completed quarterly buybacks at $15.7 billion and ranks third in buybacks at $34.3 billion over the past three years, said Howard Silverblatt, senior index analyst at Standard & Poor's.
