Business Notes

Few stocks can move the market like Big Blue. IBM, whose $63 billion value ranks No. 1 among U.S. public companies, is America's most heavily traded stock, typically accounting for at least 25% of the stock market's activity. Last week the world's largest computer company demonstrated its mighty influence when it stunned Wall Street with a disappointing earnings report. After IBM announced Tuesday that first-quarter profits would be $514 million instead of the $1.03 billion analysts had expected, the stock plunged, cutting the company's value $7 billion in a single day. The rest of the market followed, tumbling 62 points in the biggest one-day loss since Oct. 9. The market lost 89 points for the week, one-third of the decline attributed to IBM.

With 61% of its revenues coming from abroad, IBM blamed an international economic slowdown and the Persian Gulf war for poor earnings. Big Blue's bad news was especially troubling for other computer companies, such as Digital Equipment and NCR, whose stocks also fell as traders anticipated similar earnings declines.