U.S. stocks rallied on Monday after IBM Corp. reported better-than-estimated preliminary fourth quarter earnings, boosting technology shares and pushing the Dow Jones Industrial Average to a gain of more than 100 points.
Shares of IBM, the world's biggest computer-services provider, rose the most in five years. The company credited stronger sales which were helped by international growth in Asia and Europe, as well as rising demand in emerging markets.
The Dowrose 120.63 points to 12,726.93 at 11:29 am in New York, with 22 of its 30 components ahead. Shares of IBM were up 6.1 percent, with Hewlett-Packard Co., up 1.6 percent.
The company reported quarterly profit from continuing operations of $2.80 per share on revenue of $28.9 billion, beating Wall Street's estimates of $2.60 per share on sales of $27.82 billion, according to a Thomson Financial poll of analysts.
For fiscal 2007, IBM said earnings rose 18 percent to $7.18 per share, including a 5-cent gain on the sale of its printing systems division in the second quarter. Sales rose 8 percent year-over year to $98.8 billion.
The information-technology company is scheduled to formally announce financial results on Thursday.
The Standard & Poor's 500 Index added 9.99, or 0.7 percent, to 1,411.01. The Nasdaq Composite Index increased 29.25, or 1.2 percent, to 2,469.19. More than three stocks advanced for every two that fell on the NYSE.