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.

'IBM to reassign 30% of staff for 103,000 service delivery biz in 2018'

International Business Machines Corp plans to reassign up to 30 per cent of staff in its 103,000 computer service delivery business this year with job losses through attrition of around 10,000, technology website The Register reported on Thursday, citing unnamed company insiders.

The news site published a slide it said was from an IBM internal presentation, which showed 10,100 jobs classified as "attrition w/o backfill".

IBM, one of the world's original PC producers but now a broad-based producer, integrator and software maker, beat expectations for revenue in its last quarterly results in October after 22 straight quarters of declines.

Spokesmen for IBM declined to make any immediate comment.
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Nasdaq, S&P hit record highs as tech, health stocks rise

The Nasdaq and the S&P 500 opened at record highs on Wednesday, powered by technology and healthcare stocks, while the Dow was weighed down by a fall in IBM's shares.

IBM fell 3.9 percent after the company's quarterly revenue came in below expectations.

The tech-heavy Nasdaq closed at a record high on Tuesday, helped by a jump in Netflix, with the index posting its longest streak of gains since February 2015.

The S&P tech sector has been the best performing sector this year despite concerns about stretched valuations as investors look for growth sectors immune to policy uncertainties.

"Netflix's strong results has caused money to move to tech stocks in anticipation of stronger earnings," said Adam Sarhan, chief executive officer at 50 Park Investments.

"If the big names such as Alphabet, Facebook, Amazon are able to show growth in an otherwise low-growth environment, then investors will pay for these stocks."

All three big tech names will report results next week.

Microsoft, which reports results on Thursday, was up 0.6 percent and was among the biggest boosts to the S&P and the Nasdaq.

At 9:45 a.m. ET (1345 GMT), the Dow Jones Industrial Average was up 4.76 points, or 0.02 percent, at 21,579.49, the S&P 500 was up 6.35 points, or 0.25 percent, at 2,466.96.
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Wal-Mart, IBM oppose US exit from Paris deal, but will stay on WH panel

Several major US companies, including Wal-Mart Stores Inc, JP Morgan Chase & Co and IBM Corp, on Friday said their CEOs will remain in an influential presidential advisory group despite objecting to President Donald Trump's withdrawal from the Paris climate accord.

Citing the need to stay engaged with the administration, business leaders said they would remain in their advisory roles to continue working to influence White House policies.

Trump, a Republican, on Thursday said he would pull the United States from the landmark 2015 global agreement to fight climate change, drawing anger and condemnation from world leaders and heads of industry.

Tesla Inc Chief Executive Officer Elon Musk and Walt Disney Co CEO Robert Iger reacted by leaving White House advisory councils after Trump's move.

"Climate change is real. Leaving Paris is not good for America or the world," Musk said in a Twitter post on Thursday. He was a member of the business advisory group, known as the President's Strategic and Policy Forum. He also belonged to Trump's manufacturing jobs council.

Asked about CEOs' criticism of the U.S. withdrawal, White House spokesman Sean Spicer on Friday said some companies that expressed support for remaining in the agreement raised concerns about the emissions reduction targets.

Spicer, speaking to reporters at a daily news conference, added he does not know if Trump will replace Musk and Iger on the business council.

A spokesman for Wal-Mart Stores Inc, the largest U.S. retailer, said on Friday that Chief Executive Doug McMillon will remain on the business council.

McMillon said in a Facebook post late on Thursday he was "disappointed in today's news about the Paris Agreement. We think it's important for countries to work together to reduce greenhouse gas emissions."

IBM CEO Ginni Rometty will remain on the council, the company said on Friday as it reaffirmed its support for the Paris accord.
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