The Dow Jones Industrial Average (INDEX: ^DJI ) finished the day on a decline of more than 80 points, dragged down by more concerns over Spain's ability to weather its growing debt crisis as well as by disappointing earnings from two tech stalwarts, IBM (NYSE: IBM ) and Intel (Nasdaq: INTC ) .
|Dow Jones Industrial Average||-82.79 [-0.63%]||13,032.75|
|S&P 500||-5.64 [-0.41%]||1,385.14|
IBM, the Dow's highest-weighted component, fell 3.5% today despite posting operating earnings per share of $2.78, beating analyst expectations. The tech giant also raised its full-year earnings forecast to at least $15 per share this year, up from its $14.85 January forecast. But IBM pulled in revenue of $24.67 billion, slightly less than analysts expected, and its systems-and-technology unit saw revenue fall nearly 7%.
Intel was the Dow's second biggest loser, down 1.8% after the company also reported earnings that disappointed investors. Intel's decline showed that it may be a victim of its past success; in recent quarters the chipmaker beat earnings by a wide margin, while today the company booked earnings that were just slightly above expectations. Intel also said that costs associated with new production lines would eat into gross margins more than previously anticipated.
On the other side of the coin, one of the bigger Dow gainers on the day was Caterpillar (NYSE: CAT ) , up 0.74% on news that it won Chinese approval to buy ERA Mining, further advancing its China operations. Along with Caterpillar's purchase of Bucyrus last year, these moves show that the company is going full-steam ahead into the booming mining-equipment segment.
Outside the Dow, eBay (Nasdaq: EBAY ) reported earnings after the closing bell that increased 20%, beating expectations. The stock jumped 7.5% after hours, spurred by its PayPal unit's revenue increase of 32% and the company's increased focus on the high-growth mobile retail space.
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