US STOCKS-S&P edges higher but IBM results drag Dow
* IBM slumps after quarterly results
* Apple earnings due after the close
* Dow down 0.41 pct, S&P up 0.12 pct, Nasdaq up 0.34 pct (Updates to open)
By Chuck Mikolajczak
NEW YORK, Oct 20 (Reuters) - U.S. stocks were mixed on Monday, with the S&P 500 and Nasdaq posting modest gains, but the Dow falling as quarterly results from IBM disappointed.
IBM shares slumped 7.3 percent to $168.69 as the biggest drag on both the Dow and S&P 500 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 produced an outsized drop in the Dow Jones Industrial Average, accounting for over 80 points to the downside for the price-weighted index.
The weak IBM results helped spur 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...