Published on Wed, Feb 27, 2008 at 09:16 | Source : CNBC-TV18
Updated at Wed, Feb 27, 2008 at 11:37
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IBM buyback announcement lifts US stocks
Big blue offered relief for the economic blues. Investors shrugged off dismal economic data, wholesale inflation up 1%, twice as much as expected. Consumer confidence was down to a 5-year low and near double-digit house price declines. They managed to give the Dow its best three-day gains of the year, the blue chips rising 115-points.
CNBC's Bertha Coombs - Big blue offered relief for the economic blues. Investors shrugged off dismal economic data, wholesale inflation up 1%, twice as much as expected. Consumer confidence was down to a 5-year low and near double-digit house price declines. They managed to give the Dow its best three-day gains of the year, the blue chips rising 115-points, the S&P 500 gaining 9 points while the Nasdaq surged by 17 points.
Energy was among the strongest sectors on the back of oil futures closing at a new record high nearly USD 101/bbl. But it was IBM that was a clear driver for stocks boosting its outlook at late morning and sending the markets higher after saying it's going to spend an addition of USD 15 billion on share buybacks.
Google set out the party, down 4.5% on the day after the latest comScore Page search data showed another drop in the number of web users clicking on ads.
Moody's affirmed that MBIA's AAA rating one day after Standard & Poor's did the same helping the bond insurer rise.
Meantime mixed earnings news from retailers, Home Depot showing a big loss but strong results from Macy's and targets helping to boost the sector.
Wall Street Action
Big bluechips offset economic concerns
Investors shrug off dismal economic data
Wholesale inflation up 1%, twice as much as expected
Consumer confidence down to 5-yr low & house price declines
Dow up 115 pts, S&P up 9 while the Nasdaq gained 17 pts
Energy among strongest gainers
IBM raises full year earnings estimates, increases share buyback
