Dow Ends Lower, but Nasdaq Climbs

Updated from 4:05 p.m. EDT

Considering the news coming out before the opening bell even sounded, the markets showed impressive resilience Monday, as tech stocks ended in positive territory and the blue-chip averages finished mixed.

The

Dow Jones Industrial Average with a loss of 22.56 points, or 0.2%, to 10,249.08. The

Nasdaq gained 15.84 points, or 0.9%, to 1785.87, and the

S&P 500 was up 2.56 points to 1125.29.

Before trading began,

IBM

(IBM) - Get Report

warned that first-quarter earnings would fall

well short of expectations, citing deferred customer spending. The company expects to earn between 66 cents and 70 cents a share, sharply lower than consensus estimate of 85 cents. The hardware and software giant also expects revenue of $18.4 billion to $18.6 billion, which, like earnings, is below estimates.

IBM's shares fell 10.1% to $87.41. Before stocks started drifting higher, the warning was pressuring the wider tech sector and the broader market.

Meanwhile, oil prices rose after Iraqi leader Saddam Hussein suspended oil exports for one month as part of the nation's protest of Israel's military actions against Palestinians in the West Bank. Iraq exports about 2 million barrels of oil a day.

Oil services company

Schlumberger

(SLB) - Get Report

ticked up 0.5% to $54.68, while

ExxonMobil

(XOM) - Get Report

tacked on 1.4% to $43.24. The Philadelphia Stock Exchange Oil Service Sector Index was up 1.1%.

Several companies were issuing quarterly guidance, and among them was embattled software company

Computer Associates

(CA) - Get Report

issued preliminary fourth-quarter financial results, saying that it took in

$770 million in revenue, in line with its expectation. CA was up 4.2% to $20.73.

The guidance comes on the heels of several warnings from the software sector, including lowered estimates from

PeopleSoft

(PSFT)

and

Check Point

(CHKP) - Get Report

.

There were a few bright spots, namely in the retail sector, as

Kenneth Cole

(KCP)

raised its first-quarter earnings forecast, saying it now expects to earn 26 cents a share on $92 million in revenue. Shares jumped 24.6% to $24.30. Elsewhere,

Sports Authority

( TSA) raised its first-quarter and full-year outlook. The company now expects to post "slightly positive" first-quarter earnings, reversing a loss in the same period a year ago. The stock was recently trading up 11.8% at $13.25.

In merger news, online brokerage

Ameritrade

(AMTD) - Get Report

has agreed to purchase its rival

Datek

for

$1.3 billion in stock as the company endures an industrywide slowdown in trading activity. The announcement of the merger came two days after Ameritrade warned that its revenue for the second quarter would fall short of its previous estimates, leaving earnings at the low end of its previous targets. Ameritrade was up 12 cents to $6.42.

On the research front, Lehman Brothers raised its investment rating on

Sycamore Networks

(SCMR)

to strong buy from market perform, lifting the shares 17.4% to $4.04.

Treasuries were lower across the board in afternoon trading. The 10-year Treasury note was losing 14/32 at 97 2/32, yielding 5.26%.

Overseas, stocks were mostly lower. London's FTSE 100 lost 1.1% to 5179, and Germany's Xetra DAX was down 1.5% at 5180. Japan's Nikkei 225 was higher by 0.2% at 11,353, and Hong Kong's Hang Seng dropped 1% to 10,724.