IBM's 4% Stock Tumble Slashes 45 Points From The Dow

By Mark DeCambreMarketsMarketWatch Pulse

The Dow Jones Industrial Average on Wednesday was being pressured lower by a sharp drop in shares of International Business Machines Corp., in early trade. IBM's stock was cutting about 45 points from the price-weighed blue-chip Dow after the technology giant reported a year-over-year sales decline for the 21st consecutive quarter, disappointing Wall Street. Wednesday's early share decline for IBM puts it on track for its worst single-day drop since April 19, when shares tumbled nearly 5% after the Armonk, N.Y. based company reported disappointing first-quarter results. Overall, the Dow is trading at break-even levels at 21,579, with a gain UnitedHealth Group Inc.'s stock helping to lift the gauge. More broadly, the S&P 500 index , up 0.3%, and the Nasdaq Composite Index , advancing 0.4%, were both trading in record territory. IBM's share decline is particularly biting for investors as the tech sector has staged a notable rebound since tumbling to recent lows on June 9. On Tuesday, the tech-heavy Nasdaq booked its first record close since June 8.

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