NEW YORK – The stock market is fulfilling predictions of an uneasy trek through second-quarter earnings season.

Stocks ended a choppy day Monday with a moderate rebound that sent the Dow Jones industrial average up 56 points. Analysts said the advance was due in part to investors’ regaining their optimism about earnings. But that change in sentiment was fleeting: After the market closed, IBM reported revenue that fell short of expectations, and investors were back to selling in after-hours trading.

Additional Photos

IBM issued an upbeat earnings forecast Monday for 2010 that, in the past, would have lifted stocks. Many investors, however, did not share the company’s more confident view. The Associated Press

“The market is caught up by this fear factor over how much the economy has slowed and what does it mean in terms of future earnings growth,” Peter Cardillo, chief market economist for Avalon Partners in New York, said before the market closed.

Stocks fell across a variety of industries in after-hours trading. IBM was hard hit, and investors also punished Texas Instruments Inc. after the chip maker matched but didn’t surpass analysts’ second-quarter revenue predictions.

Alan Gayle, senior investment strategist for RidgeWorth Investments, said Monday’s market moves were in part a response to the announcement of better-than-expected orders for Boeing Co. at the Farnborough International Airshow in Britain. The aircraft maker announced orders at the Farnborough show, including a deal with Dubai-based airline Emirates worth $3.6 billion. Boeing also said GE Capital Aviation Services placed a $3 billion order.

Boeing’s stock rose during regular trading, but it joined other stocks in falling in after-hours trading in response to IBM’s revenue report.

The Dow rose 56.53, or 0.6 percent, to 10,154.43. The Standard & Poor’s 500 index rose 6.37, or 0.6 percent, to 1,071.25, while the Nasdaq composite index, lifted by a rally in tech stocks, rose 19.18, or 0.9 percent, to 2,198.23.

Related Stories