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IBM Crashes Most In 8 Years, Now Down For 2013

Tyler Durden's picture




 

Following last night's abysmal earnings and outlook shift, it appears the hopers are leaving IBM in their hordes. The biggest single-day drop in 8 years has smashed IBM down over 7% and plunged it into the red for 2013. This drop represents a 120 point drop in the Dow Jones Industrial Average - but have no fear, thanks to EURJPY and the rest of the Dow components magically levtating, the Dow is green...

 

Worst drop in 8 years...

 

Leaves IBM red for 2013

 

but the Dow has managed to get green despite the 116 point drag...

 

Charts: Bloomberg

 

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Fri, 04/19/2013 - 11:26 | 3472025 toys for tits
toys for tits's picture

Fuck Warren Buffet.

Fri, 04/19/2013 - 11:29 | 3472044 TrumpXVI
TrumpXVI's picture

Becky Quick does.

Fri, 04/19/2013 - 12:06 | 3472336 Long_Xau
Long_Xau's picture

IBM in the middle of being "golded"?

Fri, 04/19/2013 - 12:27 | 3472465 imaginalis
imaginalis's picture

Watch it get substituted in the S&P500

Fri, 04/19/2013 - 11:27 | 3472032 dow2000
dow2000's picture

Ben you are crooked evil man, your day will come.

Fri, 04/19/2013 - 12:14 | 3472373 Richard Chesler
Richard Chesler's picture

Ask not what IBM can do for Ben; ask what Ben can do for the Ponzi-Fest formerly known as "the market".

Fuck you Bernanke!

Fri, 04/19/2013 - 11:27 | 3472034 insanelysane
insanelysane's picture

LOL  Apparently the buyers believe that Microsoft is getting all of the IBM business rather than facing the reality that we are still in a recession and no one is getting the business.

Fri, 04/19/2013 - 11:37 | 3472119 bdc63
bdc63's picture

I cannot believe they are only down 7% after that turd they dropped last night

Fri, 04/19/2013 - 11:28 | 3472036 Uncle Zuzu
Uncle Zuzu's picture

Digital is killing them in the mini computer segment. Product called VAX.

Fri, 04/19/2013 - 11:46 | 3472183 NoDebt
NoDebt's picture

Yeah, I heard they don't even need punch cards any more.  They can do it straight from tape.

Fri, 04/19/2013 - 11:45 | 3472184 max2205
max2205's picture

Ben is doing a wonderful job buying Google and apple ect to offset IBM. 

 

BTFD

Fri, 04/19/2013 - 12:07 | 3472337 shermacman
shermacman's picture

Hmmm... Pretty soon they'll have the internet on computers.

Fri, 04/19/2013 - 11:28 | 3472037 nmewn
nmewn's picture

"We must raise taxes on the evil rich to increase the government subsidy for this fine American corporation and its board members!" - Paul Krugman

(Not really a quote...but could be...lol.)

Fri, 04/19/2013 - 11:28 | 3472039 Bearwagon
Bearwagon's picture

Just as I said this morning: Heading into the weekend all will be green. Anyone still searching for the "market"? Give in, you'll never find it.

Fri, 04/19/2013 - 11:35 | 3472086 Son of Loki
Son of Loki's picture

"No Muppets left behind."

Fri, 04/19/2013 - 11:43 | 3472159 Bearwagon
Bearwagon's picture

"Muppetnipulation" everywhere one looks ...

Fri, 04/19/2013 - 11:34 | 3472090 TraderTimm
TraderTimm's picture

Don't worry, the real bear claws don't come out until May. Nearly there...

Fri, 04/19/2013 - 11:35 | 3472102 mdtrader
mdtrader's picture

Big Blue crash = Dow Green.

Fri, 04/19/2013 - 11:42 | 3472164 Ness.
Ness.'s picture

Agreed - what a fucking joke. Boeing, CAT, MCD, IBM, AAPL are all getting pounded but hey, Chipotle beat!!  We don't need Tech or manufacturing as long as I can get a burrito bowl with 5 types of salsa - it's all good.

Fri, 04/19/2013 - 12:02 | 3472302 augustusgloop
augustusgloop's picture

well BA is up--because the turd sandwich called the 787 will fly again. BA near 52wk high on plane that doesn't fly, airlines w/ fewer flights.

ROW is tanking, Bellweather companies tanking, yet S&P up nearly 1%...recipe for disaster.

Fri, 04/19/2013 - 11:39 | 3472114 e m m
e m m's picture

Down for 2013? But wasn't it IBM, the biggest Dow component, with its late January earnings report that broke out the Dow around 13700 to trigger the big march?

Fri, 04/19/2013 - 11:38 | 3472115 Rayfp65
Rayfp65's picture

If everyone has such confidence in the market, than central banks can stop interfering!

This market is like the Nerd in school, who has just become best friends with the Bully in school, and everyone stops picking on the Nerd because they're afraid to get their A$$'s kicked.  Most of the banks passed their "stress tests" with flying colors, Mr. Bove says the banks are undervalued,  and just about everyone thinks the market is cheap!

Well than we don't need the Fed anymore, do we???

So lets cut all the nonsense out and see what the market and banks are really worth, and lets see how bullish everyone is than!!! When the FED(bully) isn't around to save them!!!!

Fri, 04/19/2013 - 11:38 | 3472116 rubearish10
rubearish10's picture

It's amazing such a "relief rally" could still occur under these circumstances. My Oh My! Thought IBM was a bellweather just like that stupid fruit!

Fri, 04/19/2013 - 11:39 | 3472125 polo007
polo007's picture

According to Macquarie Research:

http://www.scribd.com/doc/136799469/Corporate-Bond-Rate-CPI-Inflation-Implies-S-P-500-at-1742-Macquarie-Research

Corporate Bond Rate + CPI Inflation Implies S&P 500 at 1742

Our research theme for several months has surrounded the ongoing Risk-off Rally in the equity markets, highlighting sector preference for defensives and yield plays, but the common question we have received is regarding fair value for the equity market. While bottoms-up consensus EPS augers for a fair value range of 1550 – 1600, the unnatural impact of monetary policy on bond rates suggests a cross-asset arbitrage model may provide a better perspective. Using our CPI Inflation model we find that the fair value of the S&P 500 could be ~1742, or around ~12% above its current price of 1552.

Given that our cross-asset arbitrage model uses the S&P 500 Dividend Yield as valuation, presumably yield stocks would significantly outperform during a rally to 1742.

While this analysis is more for thought than basing investment decisions, it does provide perspective that the ongoing global quantitative easing undertaken by central banks should continue to push investors out on the risk curve and support higher equity markets. The question then becomes, as the Monetary valuation regime, is increasingly detached from a Fundamental/ Economic valuation regime, what happens when central banks ultimately reverse course?

Fri, 04/19/2013 - 11:39 | 3472131 mdtrader
mdtrader's picture

Are people buying the Dow for the other 29 crashes?

Fri, 04/19/2013 - 11:40 | 3472139 polo007
polo007's picture

According to Morgan Stanley:

http://www.scribd.com/doc/136909202/The-Higher-the-Stakes-The-Higher-the-Risks-Morgan-Stanley

The Gold Standard, a system of fixed exchange rates, is blamed by some for creating the Great Depression. Caught between rising domestic unemployment and the commitment to a fixed exchange rate, the UK exited from the Gold Standard in September 1931.

Almost immediately, Scandinavian economies followed suit, devaluing their currencies in line with sterling. The US, Italy and Germany stubbornly resisted…until they gave in and left the Gold Standard as well (the US in 1934, Italy and Germany in 1936). The decision to leave or stay on the Gold Standard separated the winners from the losers. Between 1931 and 1935, economies that devalued early got the benefits of monetary easing and saw their production expand, while those that stayed on it faced economic contraction. When everyone was off the Gold Standard by 1936, everyone was able to ease monetary policy and help their ailing economies.

Today, GME3 – the third wave of the Great Monetary Easing – is in full swing. This is typically the time when central banks start thinking about keeping policy on hold for a while before withdrawing stimulus, not easing policy further. Yet, the lingering question marks about growth (bigger in some places like the euro area, smaller in most EM economies) along with currency strength have resulted in exactly that – a further round of easing.

Such aggressive action has raised the stakes around the world, nowhere more so than in Japan. But the risks are high too, nowhere more so than in Japan.

The risks, while certainly not negligible, are the lowest for the Fed and the ECB: Neither should mind easing (or in the case of the Fed, not tapering off the easing) at this juncture. The economic downturn in the euro area seems likely to stretch on for longer, and both conventional and unconventional easing are back on the table following last week’s ECB statement and press conference. The US economy is now going through a soft patch, and with the growth relapses of the past few years in mind, keeping QE3 purchases going to minimise the risk of a premature end to easing will likely outweigh the risks.

Fri, 04/19/2013 - 11:41 | 3472142 Yen Cross
Yen Cross's picture

    LMFAO. The ES is up 12 points. Need moar POMO. The $ got slammed down earlier and the euro spiked. 80% of the EFSF bonds sales this morning were purchased buy European Investors. Wake me up when the circus is over.

 http://www.fxbriefs.com/major-currencies/80-of-efsf-bond-issue-sold-to-e...

Fri, 04/19/2013 - 11:43 | 3472155 fonzannoon
fonzannoon's picture

Dow down 500 tomorrow

Fonzannoon - 4/18/2013

Fri, 04/19/2013 - 11:47 | 3472189 rubearish10
rubearish10's picture

...... how and what can you base that on, "Fonzannon"? Wami missin'?

Fri, 04/19/2013 - 11:55 | 3472250 SmallerGovNow2
SmallerGovNow2's picture

Not open tomorrow Fonz, maybe you get your wish on Monday...

Fri, 04/19/2013 - 13:43 | 3472903 fonzannoon
fonzannoon's picture

I said that yesterday regarding today. I just wanted to illustrate how stupid I am.

Fri, 04/19/2013 - 11:45 | 3472178 WTF_247
WTF_247's picture

Yest they were nailing FDX.  Of course instead of having the Dow down big they simply rotate into other names yet again - HD, JPM etc.  The name of the game is to keep the market levitated. 

If you have 10 rotten apples and 1 good apple the market gravitates toward the good apple every time ...

Fri, 04/19/2013 - 11:45 | 3472179 mdtrader
mdtrader's picture

EUR/USD looks ready to crash.

Fri, 04/19/2013 - 11:52 | 3472232 firstdivision
firstdivision's picture

Buy now or be priced out forever....or until the next drop.

Fri, 04/19/2013 - 12:36 | 3472526 Kirk2NCC1701
Kirk2NCC1701's picture

Just BTFD.  You know, Buy Low!?  Sell on the way up.  QED.

Fri, 04/19/2013 - 12:41 | 3472549 thismarketisrigged
thismarketisrigged's picture

it truly is amazing how with ibm down fucking 7 and a half percent today, the fucking dow is only down 24 pts.

 

makes no fucking sense.

 

also, why the fuck is google up 20 dollars today on a huge revenue miss, and there online revenue down? can someone explain that one?

Fri, 04/19/2013 - 12:52 | 3472612 RKDS
RKDS's picture

IBM is practically an Indian company these days, so its price has a long way to fall until it reflects its value.

Fri, 04/19/2013 - 14:07 | 3473048 Artful Dodger
Artful Dodger's picture

There goes the blue chip 1.8% dividend for the year -- 4 times over! Oops!

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