Big Blue boosts blue chips

US INVESTORS focused on IBM yesterday afternoon as they shopped for blue chips and techs on the heels of bullish guidance from Big Blue, Nokia and Eastman Kodak.

Around 1:25pm ET, the Dow Jones industrial average (up 204.04 to 8240.07, Charts) rose about 2.3%, although it was off its session high.

The Nasdaq composite (up 42.54 to 1274.96, Charts) and Standard & Poor's 500 index (up 18.72 to 878.74, Charts) also showed strength.

Market breadth was decidedly positive as volume picked up.

On the New York Stock Exchange, advancers beat decliners about 10-to-3 as 1.04 billion shares traded. On the Nasdaq, winners beat losers 11-to-4 as 1.07 billion shares changed hands.

Stocks have taken wild swings on either sides of break-even this week, driven by volatility in an uncertain earnings and economic period.

According to analysts, any bit of good news in this climate elicits an exaggerated reaction in an oversold market that's coming off a slew of negative pre-announcements.