Summary:

• IBM has risen almost 8% after it latest earning release
• Tech giant beat analyst expectations on both the top and bottom line
• Fresh all-time highs in all major US indices

Despite posting a 22nd second consecutive decline in revenues for the last quarter, IBM has seen a strong move higher on the open today with the stock gaining around 8% at the time of writing. The third quarter revenue was $19.2B, down by 1% adjusting for currency movements but against consensus forecasts according to Thomson Reuters of $18.6B the release appears favourable.

It’s a similar story as far as earnings are concerned with the bottom line showing earnings per share of $3.30 against a forecast $3.28 according to the same survey. The news has been warmly greeted by investors with the stock price rising by its most since 2002 on the open.  

 IBM has opened sharply higher following its latest trading update. Source: xStation

After hitting a high above 182 back in February the stock has come under increasing pressure and fell by almost a quarter before finding a bottom at 139. Today’s surge has seen price hit a 5-month high and rise to not far from the 50% fib retracement of the decline. 

 The US100 has sold sharply at the start of the US session after earlier making an all-time high. Source: xStation

The rise in IBM has boosted both the US30 and US500 with both markets adding to their recent gains and surging to fresh record highs. The US100 has also moved into uncharted territory today, but there has been a notable sell-off seen since the Wall Street open just over 30 mins ago. It would be premature to call this a top so soon after a record high, but the scale of the selling does show that a quick swoon lower could happen in this market if investors decide to lock in profits. Despite an overall benign year for price action there have been a couple notable drops in the US100 with little by the way of reason behind them (for instance back in June).