A $15 million buyback by IBM plus today's good retail news and higher commodity prices set off a third straight day of stock market gains. IBM sparked a tech rally, including big gains by Intel and Microsoft, the Wall Street Journal reports. The Dow gained 114.7 to close at 12,684.92, the Nasdaq 17.51 to 2,344.99, and the S&P 500 9.49 to 1,381.29.
"It is showing that IBM believes its stock is a good value at this price and is confident it is going to have the cash flow to perform this buyback,'' a strategist told Bloomberg. Stocks had fallen earlier in the session on gloomy news from the Labor Department and the Conference Board on producer prices and consumer confidence. (More stock market stories.)