IBM Report Sparks Stock Rally

by Darren

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Good news from IBM sparked a rally in share prices today. IBM, one of the 30 companies who comprise the Dow Jones Industrial Average, announced their fourth quarter results would be 24 percent higher than originally thought.

Despite the good news from IBM, the financial sector is still taking a beating.

But the badly beaten financial sector could be in for more pain, after reports over the past week that Citigroup Inc. may have to take a larger-than-feared writedown; the bank’s earnings report is due Tuesday.

Elsewhere in the sector, Merrill Lynch & Co. Inc. is seeking $4 billion, in a second capital raising to stanch the losses on its balance sheet, according to the Financial Times. The Kuwait Investment Authority could invest as much as $3 billion in the deal, which could be announced by the middle of the week.

There is plenty of time to reverse the trend, but some good news has helped to reinvigorate the markets today.

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