IBM earnings strength calms tech jitters

IBM posted a higher-than-expected preliminary quarterly profit and affirmed its full-year outlook, calming some fears that the financial crisis is sparking a meltdown in technology demand.

Shares of IBM, the world's largest computer services company, rose 6 percent on the news, which also bolstered other technology shares that have been hammered on fears that a global recession would crush corporate IT spending.

"It is very nice to see some positive news, not just for IBM but for -- to a degree -- the tech space overall, given the downdraft we have seen in recent weeks," said Chuck Jones, technology analyst for Atlantic Trust Private Wealth Management, which manages $16 billion of assets.