IBM Drags Down Chip Makers After a Huge Q3 Earnings Miss

After disappointing investors on a huge earnings miss, shares of IBM fell sharply on Monday making it theStreet's Move of the Day. International Business Machines Corp. reported weak revenue growth and a big charge to get rid of its costly chip making division as the tech giant tries to focus on its cloud computing and social-mobile businesses. The company posted third quarter earnings of $3.68 a share on $22.4 billion in revenue, falling below Wall Street expectations. The company also announced the sale of its semiconductor business to GlobalFoundries for $1.5 billion over three years. IBM said handing over control of its struggling chip-making operations will allow it to grow faster, while IBM continues to invest and expand its chip research. IBM dragged down shares across the entire semiconductor industry Monday, closing down on nearly seven times its normal trading volume.