Stocks Seesaw In Tandem With Ibm

Stocks seesawed sharply Monday, ending slightly lower as a morning rally following IBM’s earnings report gave way to heavy profit-taking that ultimately drew bargain hunters into the market.

The Dow Jones industrial average ended the volatile day down 3.36 at 6,090.87, rebounding in the last half hour from a 34-point loss. Earlier, the Dow surrendered a nearly 40-point jump that had put the blue-chip barometer above 6,100 just a week after its first close above 6,000.

The Dow and several broader measures started the day lower after IBM’s anxiously awaited report on its earnings proved uneventful.

The profit of $1.29 billion, or $2.45 a share, hit the higher range of analyst forecasts, but failed to generate the same enthusiasm as last week’s earnings reports from Intel and Compaq Computer, which beat estimates by a wide margin.

Some of the stocks that moved substantially or traded heavily Monday:

NYSE

IBM, up 3/4 at 130-1/8.

The computer industry bellwether reported that its profit edged lower in the third quarter as revenues, weakened by stagnant software results, failed to keep pace with expenses. Still, the profit of $1.29 billion, or $2.45 a share, came in at the upper end of expectations, buoyed by a healthy improvement at IBM’s main computer hardware business.

Texaco, up 2-1/2 at 105-7/8.

Chevron, down 1/8 at 67-1/4.

Exxon, down 3/8 at 89.

The big oil companies reported stronger third-quarter earnings, with Texaco showing a 50 percent improvement and Chevron doubling its profit from the same period last year. Exxon’s earnings improved 4 percent compared with last year’s third quarter.

Goodyear Tire & Rubber, up 1 at 46-1/2.

The tiremaker’s third-quarter profits rose 8.1 percent to $170.2 million, or $1.09 per share, slightly below forecasts. Sales decreased slightly to $3.27 billion, but volume rose 6.1 percent.

McDonald’s, down 1-1/2 at 44-5/8.

The stock sagged for a second session after the fast-food chain’s disappointing third-quarter earnings report, which showed another decline in U.S. revenues and a lackluster performance abroad.

NASDAQ

Italian Oven, down 1 at 1.

The Latrobe, Pa.-based restaurant operator filed for bankruptcy-court protection from its creditors. Italian Oven said it has been in discussions with parties about investing in the company, but none were willing to invest without protection under Chapter 11 of the federal bankruptcy code.