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IBM Accounts For The Entire Upward Move In Dow Jones Index Today

Tyler Durden's picture


Wondering why with the S&P and Nasdaq both down, the DJIA is up 60 points? Wonder no more: courtesy of a few strategic index-weighing calculations, IBM is responsible for 59.4 DJIA points, or virtually the entire up move in the most popular stock index. One company, the one which Warren Buffett so strategically picked last year to invest in, now biases the entire market to make it seem that "all is fine."

Chart: Bloomberg


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Fri, 01/20/2012 - 14:17 | 2081637 catacl1sm
catacl1sm's picture

Fuck me. We're on the edge now, bitchez.

Fri, 01/20/2012 - 14:38 | 2081738 trav7777
trav7777's picture

silver is up a buck, can't you mfers be HAPPY for once???

Fri, 01/20/2012 - 14:42 | 2081758 Kaiser Sousa
Kaiser Sousa's picture

up a buck and still $500 below where it should b n debt coupon dollars...

dont trip on us...we know when its time to "dont happy"...

Fri, 01/20/2012 - 15:55 | 2082073 tocointhephrase
tocointhephrase's picture

Bottoms up Trav (take it how ya like, lmfao, muwuhaha)

Fri, 01/20/2012 - 14:16 | 2081639 monopoly
monopoly's picture

Thanks Tyler. i thought something like IBM might be the reason. Lots of red on my screens and the green is just boring.

Fri, 01/20/2012 - 14:23 | 2081667 Cognitive Dissonance
Cognitive Dissonance's picture

The market ramp has been reduced to individual issues. Soon it will crest and the swift down leg begins. Hold on tight boys and girls.

Fri, 01/20/2012 - 14:38 | 2081735 Vaiman
Vaiman's picture

Yes thanks Tyler!  I've been wondering what the heck is going on.  Yes...I agree...hang on to your tights boys and girls!

Fri, 01/20/2012 - 16:10 | 2082129 lotsoffun
lotsoffun's picture

cd - good point.  i think you're right.  BAC started ramping 2 weeks ago for uncle warren and pulled the whole sector up on crappy earnings and lower revenue (inspite of all the news that the sector was lowering bonuses).  and i saw the IBM play by warren very clearly when that one came up, because it was the easiest way to ramp the DOW.  those couple of individual plays are right now 'bennie - at least get me out now flat!!'.  come to think of it - anybody seen jon corzine lately?  or timmie?  very low profiles.


Fri, 01/20/2012 - 16:36 | 2082229 Vaiman
Vaiman's picture

Toyota is running up hard also....major gap up today after a run up yesterday.  I'm buying my Feb puts ready for the gap fill.  I'm quite sure the bulls are running on borrowed time.  Not sure what else the spin doctors can use to keep this upward momentum going.  When the institutions decide it's time to massively short this then look out below!

Fri, 01/20/2012 - 14:26 | 2081674 Hansel
Hansel's picture

As the highest priced stock in a price-weighted index, IBM is the go to stock for manipulating the Dow, and therefore too big to fail.

Fri, 01/20/2012 - 15:04 | 2081815 hedgeless_horseman
hedgeless_horseman's picture



IBM?  I think the last time I personally saw an IBM computer was about the same time I personally saw a roll of Kodak film.  Are they still in business?  If so, making what? 

Were not AIG, GM, and Kodak all DJIA components, too?

Fri, 01/20/2012 - 15:11 | 2081877 ragequit
ragequit's picture

Your ignorance of IBM's core business and its lack of consumer level products doesn't mean the company isn't profitable.

Fri, 01/20/2012 - 15:36 | 2081989 orangedrinkandchips
orangedrinkandchips's picture

how funny, when I was in college we had the 'dorms of the future' which had a pc in every room..(and I just turned 40) screens...shit..all we did with them was play tetris!!


IBM sold their Lenovo pc business but their consulting business is what keeps em going....



Fri, 01/20/2012 - 16:05 | 2082109 lotsoffun
lotsoffun's picture

aig, gm and kodak were all wonderful american corporations.  they still are.  infact, our government still owns large amounts of aig and gm.  and let's not forget the big C - citibank




Fri, 01/20/2012 - 14:30 | 2081695 clones2
clones2's picture

Awesome "screen"... Anywhere to get this particular screenshot other than Bloomberg? ie. free?

Haven't seen leaders/laggers broken down into the impact on the index before.

Sat, 01/21/2012 - 14:05 | 2084368 RiverRoad
RiverRoad's picture

Keep watching those screens:  This is how Buffet takes the market up just before the election.

Fri, 01/20/2012 - 14:18 | 2081641 GeneMarchbanks
GeneMarchbanks's picture

Plus they were a fine contributor to the Holocaust.

Fri, 01/20/2012 - 15:05 | 2081685 Hansel
Hansel's picture

I highly recommend this talk, along the same lines: How governments have tried to block Tor - Youtube.

Smartfilter -> Secure Computing -> McAfee -> Intel

Intel is providing the censorship tools for places like Tunisia, and lots of other dictatorial countries.  Boeing, Vodafone, and Cisco do too.

Fri, 01/20/2012 - 15:58 | 2082077 tocointhephrase
tocointhephrase's picture

Long live ZH!

Fri, 01/20/2012 - 18:18 | 2082582 piceridu
piceridu's picture

Absolutely fancinating video Hansel...thanks for the hook up!

Sat, 01/21/2012 - 17:21 | 2084951 FrY10cK
FrY10cK's picture

I'm a lurker who's always been a little uncertain about the signal-to-noise ratio here at ZH. That video keeps me interested. Thanks for the link.

Fri, 01/20/2012 - 14:18 | 2081645 catacl1sm
catacl1sm's picture

OT: WTF is up with Silver and Oil today??? Seems backwards considering the stealth QE via FX Swap.

Fri, 01/20/2012 - 14:19 | 2081651 CvlDobd
CvlDobd's picture

I was gonna say. I haven't read silver bitchez anywhere today.

What's up with that?

Fri, 01/20/2012 - 14:23 | 2081666 GeneMarchbanks
GeneMarchbanks's picture

That can only be bullish IMO. I see "Silver, bitchez" my first thought is sell...

Fri, 01/20/2012 - 14:26 | 2081679 CvlDobd
CvlDobd's picture

I agree my friend.

Fri, 01/20/2012 - 16:07 | 2082093 tocointhephrase
tocointhephrase's picture

 Backwardation might explain your backward thinking in Silver in Oil some call it "peak" as in "Peak Oil" but it is not my place to comment. It looks like a sea of paper out there. You might want to think about building an ark!

Fri, 01/20/2012 - 14:18 | 2081648 orangedrinkandchips
orangedrinkandchips's picture

two words...





Fri, 01/20/2012 - 14:20 | 2081653 surfwon
surfwon's picture

Warren the Baffoon

Fri, 01/20/2012 - 14:32 | 2081662 Fidel Sarcastro
Fidel Sarcastro's picture

The Old Coger of Omaha.

Fri, 01/20/2012 - 14:21 | 2081654 Cdad
Cdad's picture

 Bingo!  This session today is sooooooo bullshit.  If you are watching individual equity positions, there are sellers all over the market.  Hard to imagine how this session does not end without the VIX reasserting itself, and the rotation from the marked up XIV to the marked down VIXY is quite clear on this matter.

IBM and XLF reversals will dictate the turn.

What an utterly shattered market structure.  Way to go Wall Street!

Fri, 01/20/2012 - 14:24 | 2081669 slaughterer
slaughterer's picture

Two words: January expiration.  

XLF has looked like it is about to break out ever since noon.

There is alot of ETF HFT going on in last two days to support this dying rally.  

Fri, 01/20/2012 - 14:33 | 2081710 Cdad
Cdad's picture

Deep ITM call selling all week on the things I watch...confirms.

Fri, 01/20/2012 - 15:59 | 2082079 lotsoffun
lotsoffun's picture

vix is going nowhere because anybody that has had shorts for the last 2 years has learned they will be crushed.

bernake will not allow short selling.



Fri, 01/20/2012 - 14:21 | 2081655 Fidel Sarcastro
Fidel Sarcastro's picture

But it is "all fine" right?  After all, the central banking mafia has it rigged to do its bidding now & forever.  

Fri, 01/20/2012 - 14:21 | 2081656 SheepDog-One
SheepDog-One's picture

Well cant have the DOW down, not even for 2 minutes! Someone might want to sell 2 shares of stock on the open market and completely implode the whole system! Gee the desperation clings like shit to the air.

These people are idiots, theyre stuck now and should let the markets drop....they give themselves NO wiggle room at all! What are we supposed to believe, that the DOW now levitates 60 points daily till year end? This all is just RETARDED!

Fri, 01/20/2012 - 14:32 | 2081699 Cdad
Cdad's picture

Who is really BlackRock.  These guys are choking on equity positions and bad at the top.  BLK will be the best short of this year, I believe.  Almost there...

Fri, 01/20/2012 - 14:22 | 2081660 Dr. Engali
Dr. Engali's picture

Diversification. :>

Fri, 01/20/2012 - 14:22 | 2081663 prains
prains's picture

creamy thighs

Fri, 01/20/2012 - 14:25 | 2081665 falak pema
falak pema's picture

one nutted index, like a one nutted empire. Lose that nut and the meccano starts coming apart. Its getting more and more dicy to keep this meccano working like a well oiled, no grain of sand here machine. 

Is IBM on a perennial hi-rise plateau, that defies a down turn? I know hi-tech is still the lead sector. But, but, but, no company is a law unto itself, even Apple is prone to a stumble. When you are that big any consumer shrinkage has immediate effect on the upward curve. Can Apple continue to be the  15-20%/yr growth company?

Fri, 01/20/2012 - 14:26 | 2081677 slaughterer
slaughterer's picture

In a word: no.  Not without something new that is spectacular (iPad 3 does not cut it, nor does iPhone 4s)

Fri, 01/20/2012 - 14:26 | 2081673 The Axe
The Axe's picture

sorry....more ramping coming     msft and intc   coming hard...

Fri, 01/20/2012 - 15:56 | 2082069 lotsoffun
lotsoffun's picture

"Berkshire's purchases in those other tech companies were far more modest than its bet on IBM. It bought 9.3 million shares of Intel and 4.2 million shares of DirecTV. Still they were unusual investments for Buffett, who has typically avoided tech stocks."


Fri, 01/20/2012 - 14:29 | 2081691 Dr. Engali
Dr. Engali's picture

Interesting market today. One stock carrying the DOW, ten year treasury selling off ,oil selling off, gold and silver up. Strange.

Fri, 01/20/2012 - 14:47 | 2081780 slaughterer
slaughterer's picture

I bought oil on the dip.  Iran premium coming back.  

Fri, 01/20/2012 - 15:02 | 2081839 Zero Govt
Zero Govt's picture

every asset class has its cycles... expecting everything to act in perfect unison in not going to happen on a daily basis

Fri, 01/20/2012 - 15:54 | 2082065 Dr. Engali
Dr. Engali's picture

Thanks. After 20+ years in the business I never would have known that.

Fri, 01/20/2012 - 15:59 | 2082084 Zero Govt
Zero Govt's picture


Fri, 01/20/2012 - 17:30 | 2082431 Dr. Engali
Dr. Engali's picture

That was because lately everything has been moving with a correlation of one.

Fri, 01/20/2012 - 14:32 | 2081692 Zero Govt
Zero Govt's picture

IBM is toast

it is no longer B2C (consumer) but B2G (Govt) including some of the most mind-numbingly dumb technologies known to man (eg. traffic lights, congestion charging zones etc)

When Govt implodes (like Govt propped-up trains) IBM will go down the sewer with them ....oh look, Warren Buffet's attached...oh well, Ciao Chumps  

Fri, 01/20/2012 - 14:49 | 2081786 slaughterer
slaughterer's picture

I do not even know what IBM makes any more, nor does my business use any of their products.  

Fri, 01/20/2012 - 14:54 | 2081810 Northeaster
Northeaster's picture

Mostly all software. Notes?

Fri, 01/20/2012 - 17:07 | 2082348 AgShaman
AgShaman's picture

They are good at all sorts of statistics keeping and number crunching.

They specialize in monitoring the slaughter and de-populization of the world...death camps...etc.

That's why Warren Buffet likes them so much.

Maybe he knows something we don't know.

I'm sure he'd love to offer his railroad's services to the Fema Camp project

Fri, 01/20/2012 - 15:02 | 2081807 poor fella
poor fella's picture

When IBM's outsourcing unit Global Services was themselves outsourced - you would think these geniuses could come up with something besides cannibalizing themselves and share buybacks. Only when the average wage at IBM is a dollar a day - can we say they've probably peaked. BULLishish


Fri, 01/20/2012 - 15:12 | 2081875 Zero Govt
Zero Govt's picture

Yes a zombie can eat its own brains, but it's brain-dead so wouldn't notice (like IBM)

Fri, 01/20/2012 - 15:22 | 2081932 Alex Kintner
Alex Kintner's picture

+1000. IBM is reaching its limit on offshoring US jobs. They had 200K US employees in year 2000. Now there are less than 90K US employees. The offshoring trick for boosting earnings is ending soon. Is it a coincidence that their fat ass CEO just quit this month? Take the money and run.

Fri, 01/20/2012 - 15:53 | 2082063 lotsoffun
lotsoffun's picture

gerstner resigned in 2002 and look how long it took to come back.  they know when to get out at the top.


Fri, 01/20/2012 - 14:32 | 2081706 Kaiser Sousa
Kaiser Sousa's picture

r we there yet....

Dow 36,000...............

Fri, 01/20/2012 - 14:56 | 2081818 SheepDog-One
SheepDog-One's picture

Well, we're almost back to where we were the last time the equities markets imploded back at DOW 12,700.

Sat, 01/21/2012 - 03:47 | 2083672 resurger
resurger's picture

hey Kaiser! i read the article of dow to 36,000

The bottom line of the article is that if you invest in a stock by buying it at the lowest and kept it for 5 years and you sold it at it's perfect peak! you would still have lost money on your investments due to inflation.

Fri, 01/20/2012 - 14:34 | 2081718 tony bonn
tony bonn's picture

this story reminds me of the one john williams tells on his website about the 1992 election in which bush officials approached ibm about reporting falsely higher revenues to boost gdp in order to salvage his promptly complied.


Fri, 01/20/2012 - 14:39 | 2081740 alien-IQ
alien-IQ's picture

it's all about "looking" good. just ignore the cancer and throw on a little makeup.

Fri, 01/20/2012 - 14:51 | 2081795 Waterfallsparkles
Waterfallsparkles's picture

Only thing that saved the Market today after Goog's huge miss.  Amazing that one stock can hold the Dow up after that huge miss from Goog.  Appears that Ibm now has more influence on the Dow than Goog.  That is why Buffet bought it a few months ago was to pump up the dow.

Fri, 01/20/2012 - 15:46 | 2082035 lotsoffun
lotsoffun's picture

waterfallsparkles - correct.  i had to explain this to a wall street compat recently.  buffet isn't stupid or senile yet.  he bought huge bac and ibm and i believe he also bought decent into intc also.  so, rather than try to ramp everybody at PPT has a few that they can target, makes it a bit easier, because at the same time the robot sharks need the bailouts, they are also fighting the FED and PPT team that feeds them.  and he only bought in because the promises where made that things would endy up good for him, at any cost (to taxpayers).  nice people, the whole lot.


Fri, 01/20/2012 - 14:53 | 2081800 Northeaster
Northeaster's picture

"the entire market to make it seem that "all is fine." -

Fuck IBM. They are killing my spouse, as they layoff thousands to pay the fucking out-going CEO $170 million, and the bullshit "Do more with less" mantra continues. Fuck them and their new CEO, I don't give a fuck if if she's first fuck female in IBM. I hope they die with a fucking aneurysm, as that's probably what will happen to my spouse from their bullshit. Get a new job? In fucking India or Pakistan? Fuck them too.

If shit ever goes bad, not sure where I go hunting to first, Bankers, CONgressional Reps, lawyer lobbyists or IBM CEO douche bags.

Fri, 01/20/2012 - 15:12 | 2081883 Hephasteus
Hephasteus's picture

The meaning of life is to surround you with so many assholes you feel entirely powerless to fix it.

Fri, 01/20/2012 - 14:58 | 2081830 bullmarket
bullmarket's picture

Microsoft is up over 5% today, Intel is up.Just another day really.

Fri, 01/20/2012 - 15:41 | 2082022 lotsoffun
lotsoffun's picture

5% is what penny stocks do.  robo was maybe delivering newspapers in 2000 when msft was selling lots of it at 65 to suckers like me.

and intc was right there at 65 also.  'think long term'.  i sold msft at 30 4 years ago.  nice.  long term.

the real meltdown is going to take much longer than many of us think logical, but it's coming.  it was here before and it's coming again even bigger.  so enjoy the ride.  enjoy the vacations and steaks and tittie bars and big gas guzzlers.

monday is going to be a HUGE up day.  greek problems solved (the x? time).  world rosy.  everything behind us.  recovery is over, full scale 'expansion' on the way, because it's ramp, ramp ramp time.  300 dow points easy.

i just wish i had the blls to bet up on something.  the truth hurts, but when is the doctor finally going to tell you it's terminal.



Fri, 01/20/2012 - 15:49 | 2082043 SheepDog-One
SheepDog-One's picture

I sold RIMM at $120 a few years ago...all relative. Todays 5% gain in some of these chump stocks is -300% from a couple years ago.

Fri, 01/20/2012 - 15:02 | 2081841 All_Is_Well
All_Is_Well's picture

We should have full employment any day now!

Fri, 01/20/2012 - 15:06 | 2081859 RobotTrader
RobotTrader's picture

IBM today.


It will be other Dow stocks next week or next month.

That's how bull markets work.

Surprises are always on the upside.

Fri, 01/20/2012 - 15:23 | 2081939 alien-IQ
alien-IQ's picture

I'm fairly certain that around 1999, you were strutting around in your brand new Members Only jacket and sporting a mullet while blasting Van Halen in your Trans Am. You're always late to the party and oblivious to what's happening.

You are a follower. The last to get a clue and the first to take it in the ass.

Fri, 01/20/2012 - 15:26 | 2081949 farmerjohn2112
farmerjohn2112's picture

That is goddamned FUNNY... +1

Fri, 01/20/2012 - 16:04 | 2082102 alien-IQ
alien-IQ's picture

He reminds me of I-Hub penny stock pumpers. Guys like that I like to fuck their wives.

Sat, 01/21/2012 - 03:42 | 2083667 resurger
resurger's picture


Fri, 01/20/2012 - 15:54 | 2082047 tocointhephrase
tocointhephrase's picture

"Suprises are allways on the upside"

Yep thats where Physical SILVER comes in Robo

Fri, 01/20/2012 - 16:50 | 2082286 andyupnorth
andyupnorth's picture

Yes, ALWAYS on the upside...  [/sarc]

Fri, 01/20/2012 - 15:12 | 2081882 RobotTrader
RobotTrader's picture

Check out MSFT, wow.......

Clean breakout to multi-year highs.

Fri, 01/20/2012 - 15:47 | 2082038 tocointhephrase
tocointhephrase's picture

Robo they need you in the lobby

Fri, 01/20/2012 - 15:40 | 2082019 PoorRichard
PoorRichard's picture

What is funny is that every value investor from Benjamin Graham on up has passed on IBM since they didn't understand the business.  Now at an all time high they do.  Of course, they could be correct, but it does sound like a market top to me.

Fri, 01/20/2012 - 16:27 | 2082202 GaryNeville
GaryNeville's picture

This market melt up has gone beyond a joke..

I think the bernank realises if he was to turn off the bots now the circuit breakers would be kicking in within half an hour..

So much for the free market capitalist dream.. Welcome to algorithm hell!


Fri, 01/20/2012 - 20:01 | 2082854 Pythaes
Pythaes's picture

he buys at low prices and puts sell orders high, days like this will just melt into his exit. then he'll acquire a larger position when it falls...value investing/hedge it whatever...he has more clout than us, not to mention he sounds like a douchebag 100% of the time.

Sat, 02/11/2012 - 01:33 | 2148772 hotstockpicks
hotstockpicks's picture

In that situation its a great question for all why with the S&P and Nasdaq both down............really ............

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