US STOCKS-Wall St to dip at open as IBM results drag

lunes 20 de octubre de 2014 09:09 GYT

* IBM slumps after quarterly results

* Apple earnings due after the close

* Futures off: Dow 99 pts, S&P 4.25 pts, Nasdaq 0.75 pt (Updates prices, adds premarket actives)

By Chuck Mikolajczak

NEW YORK, Oct 20 (Reuters) - U.S. stocks were poised for a slightly lower open on Monday, on the heels of a fourth week of losses for the benchmark S&P 500, as quarterly results from IBM disappointed.

IBM shares slumped 7.5 percent to $168.46 in premarket after the company's third-quarter earnings fell well short of Wall Street expectations. IBM had earlier said it would pay Globalfoundries $1.5 billion in cash over the next three years to take its loss-making semiconductor unit.

IBM's weakness is likely to produce an outsized drop in the Dow Jones Industrial Average, as the stocks closed out Friday's trading as the second-most expensive on the price-weighted index.

Stock index futures dropped after the IBM results, but managed to pare losses as the weak results spurred speculation the Federal Reserve may be reluctant to end its massive bond-buying stimulus program this month.

"On a number like that, with the forecast they gave you would expect the broader market would come under more pressure, and maybe it will," said Ken Polcari, Director of the NYSE floor division at O'Neil Securities in New York.   Continuación...