New York, July 14, 2026, 12:05 EDT
- IBM dropped $75.61, which cut around 449 points from the Dow. If IBM hadn’t moved, the Dow would’ve been up about 379 points, assuming nothing else changed.
- The Dow slipped 0.13% as of 11:47 a.m. EDT, while the S&P 500 rose 0.37%. The Nasdaq Composite traded up 0.93% and the Russell 2000 added 0.50%.
- Consumer prices dropped 0.4% from May to June, but a rebound in oil prices could cut into that inflation relief.
Dow slips by around 70 points late Tuesday, but that figure makes Wall Street’s drop look worse than it is. If IBM hadn’t moved, the Dow would be up roughly 379 points, and the S&P 500, Nasdaq, and Russell 2000 traded in the green already. The main number didn’t match the broader action.
This came down to mechanics. The Dow gets its moves from price weighting, so a $1 change in any stock impacts the index equally. IBM’s slide pulled the Dow down by about 449 points. On the flip side, gains in Goldman Sachs NYSE:GS and JPMorgan Chase NYSE:JPM put back a combined 471 points. Index structure mattered more than how many stocks were up or down.
| Index | Level at 11:47 a.m. EDT | Change |
|---|---|---|
| Dow Jones Industrial Average | 52,428.93 | -0.13% |
| S&P 500 | 7,542.84 | +0.37% |
| Nasdaq Composite | 26,113.34 | +0.93% |
| Russell 2000 | 2,967.79 | +0.50% |
The Consumer Price Index dropped 0.4% in June and is up 3.5% over the past year. Stripping out food and energy, prices didn’t change from May and were 2.6% higher than a year ago. The main CPI reading came in under the 3.8% gain forecast by Reuters, pushing down market odds of a July Fed rate hike to near 15%, from 35%. The rate channel stayed supportive.
IBM is guiding for about 1% revenue growth in the second quarter, which points to around $17.2 billion in sales. That’s short of the $17.86 billion analysts predicted. IBM’s adjusted earnings outlook landed at $2.93 a share, also missing views. CEO Arvind Krishna said the firm “did not anticipate the magnitude of the capex reprioritization” as customers switched spending to servers, storage, and memory. The market wants to see results. IBM Newsroom
| Dow member | Stock-price move | Approximate Dow-point effect |
|---|---|---|
| IBM NYSE:IBM | dropped $75.61 | -449 |
| Goldman Sachs NYSE:GS | gained $72.42 | +430 |
| JPMorgan Chase NYSE:JPM | added $6.90 | +41 |
| Net effect of the three | — | +22 |
Estimates are based on the current ratio of roughly 5.94 Dow points for every $1 move in a stock’s price.
Goldman Sachs jumped 6.92% after it posted a quarterly profit that beat expectations and hit a new record in equities trading revenue. JPMorgan moved up 2.06% as it logged record quarterly profit. With Goldman over $1,100 per share, its $72.42 gain almost wiped out IBM’s $75.61 drop for the Dow, even though the company moves weren’t linked. But the data point elsewhere.
IBM’s weak results hit more than just the index numbers. Microsoft NASDAQ:MSFT and ServiceNow NYSE:NOW slipped at the open, as some investors worried that artificial-intelligence infrastructure spend was crowding out software budgets. “An ugly moment for IBM and software stocks,” IG Group (LON:IGG) chief market analyst Chris Beauchamp said. This wasn’t only about index math. Reuters
Nine of the S&P 500’s 11 sectors pushed higher in early trading, with the Philadelphia semiconductor index up around 3.1%. More stocks rose than fell on both the NYSE and Nasdaq. The relief in the market reached beyond what the Dow showed.
June’s fall in inflation was mostly about cheaper energy, and that might not stick. The Bureau of Labor Statistics said energy prices dropped 5.7% for the month and gasoline fell 9.7%. By late Tuesday morning, Brent crude was up at $84.57 a barrel, U.S. crude at $78.94, with fighting flaring again between the U.S. and Iran. “The favorable CPI number … could be very different next month,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. The next report could look quite different. Bureau of Labor Statistics
Yields dropped after the move in Treasury markets, with the two-year down 0.07 point to 4.193% and the 10-year off about 0.035 point at 4.575%. “All eyes are on earnings season,” said Mark Hackett, chief market strategist at Nationwide Investment Management Group. Timing is key. Reuters
The Dow on Tuesday was pulled between a software slowdown and gains in the banks. Investors watched IBM after its warning, with full results due July 22 set to show if the spending drop was just end-of-quarter timing or something worse for software demand. IBM earnings will have to clear it up.
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