IBM Doesn’t See That Day 2 Reversal
MoneyBeat has seen it time and time again: A stock slides or surges — often after a quarterly report — only to partially reverse course the next day as the market’s initial reaction calms.
But while stocks are generally rebounding further Tuesday from last week’s tumult, International Business Machines Corp.IBM -0.04% is undergoing a second day of selling and again is capping the Dow industrials’ gains.
IBM’s shares fell 4% Tuesday morning to a 3-year low of around $162. That drop equals 44 Dow points, the biggest pressure point for the index. It’s also more than double the impact Coca-Cola Co.KO +1.03% is having on the DJIA despite its stock being down nearly 6.5% on lowered forecasts and soft third-quarter sales. The index is up 82.
IBM is down 14% this year, making it the worst-performing Dow stock after being the only decliner in 2013. It is now the 20th-biggest company in the S&P 500 by market capitalization with Oracle Corp.ORCL +1.14% passing it this morning.
As MoneyBeat reported Monday, IBM has never fallen outside of the top 20, but the slide in its shares the past two days has put it on the precipice. IBM’s market cap stands at about $160.5 billion, just $3 billion ahead of Merck MRK +1.75% & Co.