US STOCKS-S&P, Nasdaq climb but IBM results drag Dow lower
* IBM slumps after quarterly results
* Apple earnings due after the close
* Dow down 0.27 pct, S&P up 0.35 pct, Nasdaq up 0.67 pct (Updates earnings data)
By Chuck Mikolajczak
NEW YORK, Oct 20 (Reuters) - U.S. stocks were mixed on Monday, as the S&P 500 and Nasdaq advanced, but the Dow fell as quarterly results from IBM disappointed.
IBM shares slumped 6.7 percent to $169.84 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 also 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 about 80 points, nearly half, of the decline in the price-weighted index. In contrast, IBM curbed the gain on the market capitalization-weighted S&P 500 by about 7 percent.
"IBM is in a transition and will need to continue to be in transition to catch up. They are nonexistent in mobile and weak in the cloud and just paid somebody to take their semiconductor business, it's a company in transition," said Art Hogan, chief market strategist at Wunderlich Securities in New York.
"We can look at earnings misses as they should be viewed, which is company specific." Continuación...