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 0.28 pct, S&P up 0.4 pct, Nasdaq up 0.75 pct (Updates prices)
By Yasmeen Abutaleb
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 7.5 percent to $168.46 as the biggest drag on both the Dow and S&P 500 after third-quarter earnings fell well short of Wall Street expectations. IBM abandoned its 2015 operating earnings target and said it would pay Globalfoundries $1.5 billion over three years to take its loss-making semiconductor unit.
"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," 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."
At 1:16 p.m. the Dow Jones industrial average fell 45.93 points, or 0.28 percent, to 16,334.48, the S&P 500 gained 7.53 points, or 0.4 percent, to 1,894.29 and the Nasdaq Composite added 31.89 points, or 0.75 percent, to 4,290.33. Continuación...