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Computer industry

U.S. Stocks Rise to Records as IBM and Other Firms Report Surprisingly High Earnings

Strategic Insights

— 1 min read

U.S. stocks surged to record highs on Monday as International Business Machines Corp. (IBM) provided a surprisingly upbeat profit outlook, suggesting that earnings for various companies might be better than expected. This optimism was reflected in the Dow Jones industrial average, which set a new record, and the Nasdaq composite index, which closed above 1,900 for the first time. However, Canadian stocks were mixed, with a decline in banks and Northern Telecom Ltd. offset by a rise in gold stocks after Barrick Gold Corp.'s better-than-expected profit.

Key Takeaways:

  • U.S. stocks rose to records with the Dow Jones industrial average gaining 43.10 points to a new record of 9,184.94.
  • International Business Machines Corp. (IBM) provided a surprisingly upbeat profit outlook, suggesting that earnings for various companies might be better than expected.
  • IBM's services revenue increased 22% in the first quarter, despite a 13% decline in overall profit.
  • The Nasdaq composite index rose 16.73 to 1,903.87, led by Intel Corp. and Dell Computer Corp.
  • Canadian stocks were mixed, with 573 stocks advancing and 469 declining, driven by a rise in gold stocks after Barrick Gold Corp.'s better-than-expected profit.
  • Gold stocks jumped as Barrick Gold Corp.'s profit increased optimism for other gold companies' earnings.
  • Unihost Corp. (formerly Journey's End Corp.) rose 50 cents to $10.25 after reporting a first-quarter profit growth exceeding expectations.

Statistics:

  • U.S. stocks rose to records with the Dow Jones industrial average gaining 43.10 points to a new record of 9,184.94.
  • The Nasdaq composite index rose 16.73 to 1,903.87, led by Intel Corp. and Dell Computer Corp.
  • IBM's services revenue increased 22% in the first quarter.
  • 573 stocks advanced in Canada, while 469 declined.
  • The total volume of shares traded in the U.S. was 674 million, with a value of $2.5 billion.
  • The Toronto Stock Exchange 300 composite index finished up 11.13 points at 7,765.52.

Sources:

  • Bloomberg News
  • International Business Machines Corp. (IBM)
  • Chase Manhattan Corp.
  • Citicorp
  • Exxon Corp.
  • Compaq Computer Corp.
  • Intel Corp.
  • Dell Computer Corp.
  • K-tel International Inc.
  • Northern Telecom Ltd.
  • Barrick Gold Corp.
  • BCE Inc.

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