RealTime IT News

eBay, IBM Surprise to the Upside

Investors reeling from disappointing results from Intel and Yahoo got some good news Wednesday when IBM and eBay posted quarterly results that topped Wall Street forecasts.

IBM shares were up 2% in after-hours trading after the company beat estimates by 3 cents with $1.50 a share earnings. Sales were up 9% to $23.8 billion, well ahead of $23 billion forecasts. Strong software sales and services bookings contributed to the strong showing, and the company also raised its full-year earnings forecast.

eBay shares were down slightly after hours despite solid results and guidance. The online auction king's sales were up 30% to $1.8 billion, topping $1.78 billion forecasts, and earnings of 34 cents a share were also better than expected. eBay also raised sales guidance for the third quarter. Results were driven by strong marketplace and PayPal business, but new item listings were down.

Stocks fell during the day on another wave of subprime mortgage fears and disappointing results from Intel and Yahoo , but the major indexes finished well off their lows for the day. Yahoo shares lost 4.8% after the company lowered sales guidance, while Intel fell by the same amount on margin concerns.

CalAmp , i2 , Opnet and TriQuint also fell on their earnings reports.

3Com edged higher on takeover speculation.

The Nasdaq lost 12 to 2699, the S&P 500 fell 3 to 1546, and the Dow lost 53 to 13,918. Volume rose to 3.65 billion shares on the NYSE, and 2.27 billion on the Nasdaq. Declining issues led by a 20-11 margin on the NYSE, and 18-13 on the Nasdaq. Downside volume was 61% on the NYSE, and 66% on the Nasdaq. New highs-new lows were 122-186 on the NYSE, and 107-89 on the Nasdaq.