Midday Wrap: Three Stocks Dragging the Market

NEW YORK (TheStreet) -- Shares of IBM (IBM), eBay (EBAY) and Goldman Sachs (GS) lag the market after disappointing Wall Street with weaker-than-expected third-quarter financials.

IBM lost 6.3% to $175 as of 1:15 p.m. EST, after the tech giant recorded a 4% decrease in third-quarter revenue to $23.7 billion. Net income, however, was up 6% to $4.4 billion, and diluted earnings were $3.68 a share.

Thursday's losses mark the largest drop in share price since April 19 this year after the release of the IT company's first-quarter results. In the year to date, shares have fallen 8.3%.

"It is carrion for other, more aggressive companies," wrote Jim Cramer in his recent Real Money analysis. "While there were currency issues that were endlessly discussed by management, I am calling this one a disaster."

eBay shares were suffering from a hangover after management outlined weak outlook a day earlier. Shares dropped 3.9% to $51.46 by 1:15 p.m. EST. In the year to date, the online auction house has gained 0.85%.

"We expect to be at the low end of the full-year 2013 guidance range on both the top and bottom line," said CFO Bob Swan in a conference call.

For the fourth quarter, management anticipates earnings of 79 to 81 cents a share, compared to analysts' estimate of 83 cents, and revenue of $4.5 billion to $4.6 billion, lower than expectations of $4.64 billion.

Swan said the cautious outlook over the festive season is partly due to shaken confidence during the U.S. government shutdown softening the economy and consumers' willingness to spend.

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