US STOCKS-Wall St rises on report of ECB action; IBM falls
* IBM shares fall after results, Netflix rallies
* ECB set to announce bond purchases: source
* Crude oil rises but still sharply down for week
* Indexes up: Dow 0.3 pct, S&P 0.7 pct, Nasdaq 0.7 pct (Updates to afternoon trading)
By Ryan Vlastelica
NEW YORK, Jan 21 (Reuters) - U.S. stocks rose in a volatile session on Wednesday on reports that new stimulative measures would be announced by the European Central Bank at its meeting tomorrow, though a tepid outlook from IBM limited the Dow's gains.
Market participants have been looking for more aggressive measures from central banks to combat the risk of deflation that has grown alongside a drop in oil prices. A source told Reuters that the ECB's Executive Board has proposed a quantitative easing program that would see the ECB buy roughly 50 billion euros ($58 billion) in bonds per month, starting in March.
"The timing and duration of bond purchases is just as important as the actual amount, if not more important," said Clem Miller, portfolio manager of Wilmington International Funds in Baltimore.
"There are also a lot of questions about asset distribution, since the market is expecting a lot of government bond purchases, and it would be disappointed if it was more slanted to corporate bonds." Continuación...