Stocks Advance; IBM Misses on Top Line

Company News

Also after the bell, chipmaker Texas Instruments(TXN) reported second-quarter sales of $3.5 billion, which was a little lighter than expected. Still, it matched consensus profit estimates calling for earnings of 62 cents a share, which was ahead of the 20 cents a share reported at the same time last year. The firm's third-quarter revenue outlook landed in-line with forecasts, ranging from $3.55 billion to $3.85 billion.

On the Dow, Intel(INTC), Boeing(BA), Alcoa and IBM had the largest gains. Bank of America(BAC) was the average's biggest laggard, followed by Merck(MRK) and Wal-Mart(WMT).

Shares across the education sector surged on rumors that an expected proposal from the Department of Education regarding gainful employment requirements would be less burdensome than initially planned. Education Management(EDMC) and Bridgepoint Education(BPI) jumped 17.3% and 10.3%, respectively, while Corinthian Colleges(COCO) and Apollo Group(APOL) stocks rose 9.1% and 5.4%, respectively.

BP(BP) shares shed almost 4% after the White House said the cap used to plug the broken well in the Gulf of Mexico is now leaking from the top.

Boeing(BA) got an order for 30 777-300ER planes worth $9.1 billion in list prices from Dubai's Emirates airline.

American International Group(AIG) named Mark Tucker, former CEO of the U.K.'s Prudential(PUK), to lead its Asian life insurance business.

Second-quarter net earnings soared 83% higher at Halliburton, but the company warned that the oil spill-spurred deepwater drilling suspension would carve 5 cents to 8 cents a share from quarterly earnings for the rest of 2010.

Delta surpassed analysts' estimates by 2 cents with a quarterly profit of 65 cents a share, or $549 million, excluding items, marking its best quarterly profit in a decade. Sales, however, came in slightly below expectations at $18.7 billion.

Improved cost-cutting helped to offset lower toy sales at Hasbro, which reported an 11% jump in second-quarter earnings. Sales slipped 7% lower to $737.8 million, which fell short of the $748.3 million in sales that Wall Street had been projecting.

ATC Technology(ATAC) agreed to be acquired by Genco Distribution System, a third-party provider of logistics services, for $25 a share.

Royal Philips Electronics(PHG) said second-quarter profits surged on strong sales across its lighting and consumer electronics divisions.

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