The Dow Jones Industrial Average declined on Wednesday, dragged lower by shares of IBM (NYSE: IBM) after the technology juggernaut posted disappointing first quarter results.
The Dow fell 119.79 points, or 0.6%, to 20,404.49, its second triple-digit decline in three days and lowest settlement in over two months. Twenty-two of the Dow’s 30 components finished in negative territory.
IBM’s stock plunged 4.9%, which translated into a more than 50-point drop for the Dow, after quarterly revenues fell short of expectations. The company generated sales of $18.16 billion in the fiscal first quarter, well below forecasts calling for $18.49 billion. It was also the company’s twentieth consecutive quarter of year-over-year revenue declines.
IBM’s quarterly earnings amounted to $2.38 per share, edging out forecasts by 4 cents.
IBM is the fourth highest-priced stock on the price-weighted Dow Jones index. Much like Goldman Sachs (NYSE: GS) on Tuesday, IBM had a large influence on Dow industrials Wednesday.
Other decliners on Wednesday included Chevron Corp (NYSE: CVX) and Caterpillar Inc. (NYSE: CAT), which fell 1.4% and 1%, respectively.
On the opposite side of the ledger, Merck & Co (NYSE: MRK) added 0.6%, General Electric Co (NYSE: GE) rose 0.5% and Intel Corp (NASDAQ: INTC) finished 0.4% higher.
The S&P 500 Index also finished lower after a back-and-forth day. The benchmark fell 0.2% to close at 2,338.17. The Nasdaq Composite Index bucked he downtrend, climbing 0.3%to 5,865.46.
European stocks bounced back from their biggest one-day drop in five months. The pan-European Stoxx 600 Index advanced 0.2%, with most sectors finishing in positive territory.