Small caps open strong

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting gains on news of unexpectedly robust earnings at International Business Machines Corp. (NYSE: IBM).
 
At 10:09 a.m. ET, the small-cap index had advanced 3.28 points, or 0.47%, to 707.93. The Dow Jones Industrial Average (INDU) was up 100.47 points, or 0.80%, to 12,706.77.

The mood on Wall Street is bullish on news before the start of trading that IBM, the largest information technology company in the world, reported better-than-expected preliminary quarterly results.

The Armonk, New York-based company said that it expects earnings from continuing operations for the quarter ended Dec. 31 to be $2.80 per share, above Wall Street’s consensus estimate of $2.60 per share and 24% higher than the $2.26 per share achieved a year earlier.

Elsewhere, retailer Sears Holdings Corp. (Nasdaq: SHLD) announced before the start of trading that it forecasts fourth-quarter earnings below analysts’ expectations due to a decline in same-store holiday sales.

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