Stocks higher on strong earnings from IBM and Merrill

Wall Street regained its composure today, marching higher after companies including Merrill Lynch & Co. and International Business Machines Corp. beat earnings expectations.

The results reassured investors after disappointing earnings from Citigroup Inc. on Monday halted three weeks of stock market gains.

Brokerage Merrill’s earnings, released before trading opened, beat analysts’ estimates by 6c a share.

IBM’s results, released after the close of regular trading Monday, also beat expectations and marked the company’s return to strength after a dismal first quarter. IBM’s stock soared, rising $1.92 to $83.73. Merrill rose $1.32 to $57.99.

“IBM’s earnings helped get the market started this morning,” said Steven Goldman, chief market strategist, Weeden & Co. in Greenwich, Connecticut.

Stocks maintained their momentum on the expectation of strong earnings reports by Intel Corp., Amgen Inc. and Motorola Inc., which reported after the close of regular trading.

The Dow Jones industrial average rose 71.57, or 0.68%, to 10,646.56. The index fell 65.84 yesterday.

Broader stock indicators were also higher. The Standard & Poor’s 500 index rose 8.22, or 0.67%, to 1,229.35, and the Nasdaq composite index rose a solid 28.31, or 1.32%, to 2,173.18.