Energy stocks lead gains on S&P; IBM drags as profit margin misses estimate

The benchmark S&P 500 index posted slight gains on Wednesday, helped by gains from industrial and energy stocks, but IBM's disappointing results and a sell-off in semiconductor stocks weighed on the Nasdaq and the Dow.

IBM fell 6.2 per cent after the company reported quarterly profit margins that fell short of Wall Street expectations.

Semiconductor stocks also took a hit, led by Lam Research's 5 per cent drop after what analysts called a disappointing shipment forecast. The S&P technology index fell about 0.5 per cent.

Not all results were disappointing. Morgan Stanley rose 3 per cent after it reported a 40 per cent jump in quarterly profit, driven by its trading business.

United Airlines rose 1.6 per cent after reporting a rise in profit and CSX Corp jumped 7 per cent after the railroad operator topped profit estimates. That helped lift the Dow Jones Transport index by 1.2 per cent.

Oil prices jumped about 2 per cent, lifted by a reported decline in US crude inventories and the risk of supply disruptions. Exxon and Chevron were up about 1.3 per cent.