IBM's Stock Selloff Can Be Blamed For Dow Futures' Decline

By MarketWatch Pulse

The premarket selloff in International Business Machines Corp.'s stock can be blamed for the decline in Dow Jones Industrial Average futures ahead of Tuesday's open. IBM's stock slumped $7.18, or 4.8%, ahead of the open, after the technology company missed third-quarter revenue expectations and cut its full-year profit outlook. That decline would shave off about 48 points from the Dow . Meanwhile, Dow futures were down 20 points. Shares of fellow Dow components Travelers Companies Inc. gained $2.80, or $2.6%, and Verizon Communications Inc. tacked on 55 cents, or 1.2%, in premarket trade after third-quarter results, which would add a combined 22 points to the Dow, not enough to offset IBM's decline.

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