was up 1.8% by early afternoon, reversing a morning slide on earnings fears after analysts at
Sanford C. Bernstein
reiterated outperform ratings. Merrill's Tom Kraemer cut his third-quarter earnings estimate by 1 cent and raised his fourth-quarter forecast the same amount, calling the move "fine-tuning." Kraemer said he still expects most IBM business lines to improve quarter over quarter and year over year. Big Blue's earnings are due out Oct. 17.