US stocks have risen, shaking off weak IBM earnings and extending the rally that began late last week.
The Dow Jones Industrial Average gained 19.26 points (0.12 per cent) at 16,399.67 on Monday.
The broad-based S&P 500 rose 17.25 (0.91 per cent) to 1,904.01, while the tech-rich Nasdaq Composite Index jumped 57.64 (1.35 per cent) to 4,316.07.
Dow member IBM sank 7.2 per cent after it reported a huge drop in profits and its 10th straight quarter of lower revenues.
The IBM results helped to keep the blue-chip index in negative territory for most of the day. The broader US stock market did well, while equity markets fell in Britain, France and Germany.
“The market corrected,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
Last week’s steep losses “sort of cleared the decks for the markets to focus on the economy and, above all, on earnings”.
Cardillo said investors are eager for a busy week of earnings that includes reports from Boeing, General Motors and McDonald’s.
Nasdaq heavyweight Apple rose 2.1 per cent ahead of the company’s fiscal fourth-quarter earnings report.
The tech giant also unveiled its “Apple Pay” system that permits transactions from mobile devices at participating retailers.
Airline stocks rose as Ebola fears abated somewhat in the US after dozens of people potentially exposed to the virus from an infected man were declared free of risk.
Delta Air Lines rose 4.8 per cent and United Airlines jumped 5.8 per cent, while American Airlines advanced 5.5 per cent.
Oil-services giant Halliburton rose 0.6 per cent as net income leaped more than 70 per cent to $US1.2 billion ($A1.3 billion), in part due to continuing strength in North America.
Biotech company Celgene climbed 4.4 per cent following the release of a paper showing positive clinical results for a treatment it is developing to address Crohn’s disease.
Toymaker Hasbro rose 4.9 per cent as third-quarter net earnings translated into $US1.46 per share, a penny above analyst expectations.
Refiner Tesoro advanced 8.4 per cent following news it plans to buy QEP Field Services, a natural gas processing company, for $US2.5 billion.
Bond prices rose. The yield on the 10-year US Treasury dropped to 2.18 per cent from 2.20 per cent on Friday, while the 30-year dipped to 2.96 per cent from 2.97 per cent. Bond prices and yields move inversely.
