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US stocks gain despite weak IBM earnings

New York - US stocks rose on Monday, shaking off weak IBM earnings and extending the rally that began late last week.

The Dow Jones Industrial Average gained 19.26 points at 16 399.67.

The broad-based S&P 500 rose 0.91% to 1 904.01, while the tech-rich Nasdaq Composite Index jumped 1.35% to 4 316.07.

Dow member IBM sank 7.2% 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% 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 United States after dozens of people potentially exposed to the virus from an infected man were declared free of risk. Delta Air Lines rose 4.8% and United Airlines jumped 5.8%, while American Airlines advanced 5.5%.

Oil-services giant Halliburton rose 0.6% as net income leaped more than 70% to $1.2bn, in part due to continuing strength in North America.

Biotech company Celgene climbed 4.4% 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% as third-quarter net earnings translated into $1.46 per share, a penny above analyst expectations.

Refiner Tesoro advanced 8.4% following news it plans to buy QEP Field Services, a natural gas processing company, for $2.5bn.

Bond prices rose. The yield on the 10-year US Treasury dropped to 2.18% from 2.20% on Friday, while the 30-year dipped to 2.96% from 2.97%. Bond prices and yields move inversely.

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