IBM’s Q2 earnings warning sent shares tumbling, offsetting gains in bank stocks and cooling June inflation data.
The Dow Jones Industrial Average fell 0.19% to 52,401.14 by midday, weighed down by IBM’s profit warning. The S&P 500 rose 0.26% to 7,535.12, while the Nasdaq Composite climbed 0.81% to 26,083.42 on tech strength.
IBM pre-announced weaker Q2 results, citing softness in software and infrastructure. CEO Arvind Krishna noted customers shifting investments toward hardware. Meanwhile, JPMorgan Chase and Goldman Sachs surged after strong earnings, kicking off a positive start to earnings season.
June inflation data showed a 0.4% month-over-month decline in the Consumer Price Index, with annual inflation easing to 3.5%. The drop in gasoline prices drove the decline, providing relief for bond yields and Fed policy expectations.