12:00PM New York – U.S. market averages jumped higher on higher earnings from IBM.

U.S. stocks moved in the higher territory after better than expected earnings from IBM. Market managed to overcome earnings warning from Sears Holdings as retail stocks fell further.

Dow Jones Industrial Average gained 113.40 to 12,722.14, Nasdaq increased 25.25 to 2,465.42, and S&P 500 added 9.62 to 1,410.88.

IBM (IBM: chart) jumped $6.03 to $103.70 after it reported sales increase of 10% and earnings rise of 24% in the fiscal fourth quarter.

Tech stocks rallied on the IBM earnings news.

Intel (INTC: chart) added 85 cents to $22.85, Cisco increased 37 cents to $26.25, Microsoft edged 27 cents higher to $34.16, and Hewlett Packard advanced $1.08 to $46.08.

Sears Holdings (SHLD: chart) declined $6.17 to $90.01 after it issued fourth quarter earnings guidance sharply lower than the previous estimate. The earnings are likely to decline as much as 51%. Same-store sales for the nine-week period ending on January 5, 2007 declined 2.4%.

Retailers took another dive after the earnings warnings from Sears Holdings.

Apple Inc (AAPL: chart) added 3.75 to $176.39 after rising as high as $178.24 ahead of the Macworld conference in San Francisco. Apple in the past has used the gathering to release new products.

Harmon International (HAR: chart) plunged 33% or $22.80 to $46.17 after the company lowered its earnings forecast for the fiscal 2008 between $3.00 and $3.10. In the press release the company said, “The change in guidance was prompted primarily by a major shift in the market for portable navigation devices. In recent months this sector has experienced significant pricing pressure which is affecting the entire industry.”

Gold increased $12.10 to $909.80 for an ounce and crude oil on New York Mercantile Exchange increased $1.21 to $93.90.

Newmont Mining (NEM: chart) gained $1.77 to $56.50, Barrick Gold (ABX: chart) gained 58 cents to $51.78, Cleveland-Cliffs Inc (CLF: chart) jumped $5.20 to $94.54, and Great Northern Iron Ore (GNI: chart) added $3.49 to $124.00.

Dollar fell to a record low against the euro to $1.4876 after the Fed Chairman Bernanke speech was interpreted by the currency traders as a possible interest rate reduction at the next meeting.


11:00AM New York - Sears Holdings Corp stock plunges 10% after company cut fourth quarter earnings guidance.

Sears Holdings Corp (SHLD: chart) warned fourth quarter earnings may fall, as much, as 51% after reporting sales fell sharply at two of its units late last year.

At Sears, same-store sales, or sales at stores open at least a year, slid 2.4% for the nine weeks to January 5, 2008.The drop reflected a reduction in home appliances sales, which Sears Holdings attributed to the slowing housing market and increased competition.

Kmart reported a decline of 4.2%. Total domestic comparable stores sales dropped 3.5% during the review period.

The company expects fourth quarter to February 2, 2008 net earnings in the range of $350 million and $470 million. This will translate into per share earnings of between $2.59 and $3.48.

Sears reported a profit of $820 million, or $5.33 per share in the year ago quarter.