NEW YORK, April 8 (UPI) -- Stock prices were mixed Monday, with the major indexes falling from the opening bell, but partially recovering by end of day.
Early market action was propelled by concerns about higher oil prices following Iraq's decision to cut oil exports and a disappointing forecast from top computer maker International Business Machines Corp.
However, in later trading the markets were able to shrug off some of the doom and gloom.
The blue-chip Dow Jones industrial average ended down 22.56 points, coming back from an over 150 point drop for the day to close at 10,249.08
The tech-heavy Nasdaq composite index gained 15.79 after dropping in earlier trading, to close at 1,785.78.
The broader New York Stock Exchange composite index was flat, adding 0.88 points to close at 591.64 while the Standard & Poor's 500 index gained 2.56 points to close a 1,115.29.
The broad Wilshire 5000 gained 37.22 points to close at 10,588.65 while the American Stock Exchange composite index gained 5.84 points to close at 904.45.
Volume was 1.24 billion on the Big Board and 1.5 billion on the Nasdaq Stock Market.
Market breadth was mixed with advancers beating decliners by 18 to 13 on the NYSE and advancers matching decliners on the Nasdaq.
Analysts said stocks came under pressure after IBM Corp., a technology giant long seen as a safe-haven stock, stunned Wall Street with a warning that spending cutbacks by corporate customers would slam earnings and revenue.
Big Blue's warning comes as first quarter earnings begin to trickle in this week.
IBM said it expects to report earnings per share of 66 to 70 cents a share, compared with earlier estimates of 85 cents a share.
IBM said revenue for the quarter is expected to be $18.4 billion to $18.6 billion, which is well below Street expectations of $19.65 billion, according to Thomson Financial/First Call.
IBM stated that it has particular problems in its OEM tech business.
Meanwhile, stocks were also pressured after Iraqi President Saddam Hussein announced Iraq would cut oil exports starting Monday for 30 days or until Israel withdraws from Palestinian territories.
In a nationally televised speech, Saddam said all exports would be cut.
The oil minister said the move took effect as Saddam spoke.
Saddam said Iraq's top leaders met earlier Monday and decided "in the name of the people of Iraq ... to stop exporting oil totally as of this afternoon through the pipelines flowing to the Turkish ports and the south for 30 days" unless Israel withdrew earlier. He said that if Israel hadn't withdrawn within the 30 days, Iraq would consider what action to take.
Iraq had begun making calls last week on Arabs to cut oil supplies as a way of pressuring the United States to force Israel to end its military incursions into Palestinian territory.
A boycott would be ineffective without Saudi Arabia and Kuwait, who have rejected Iraq's call to use oil as a weapon. Many Gulf states depend on oil revenues for more than two-thirds of government income and cannot afford to stop sales.
The last time oil-producing Arab nations used oil as a political weapon was in 1973, when reduced exports caused a global energy crisis. Since then, the world's wealthiest nations have created the International Energy Agency to provide a cushion against any similar disruption.
Based in Paris, the IEA can tap into 4 billion barrels of strategic oil reserves maintained by its member countries. That's equal to more than five years of Iraqi production, based on the IEA's estimate of Iraq's output in January.
In November 2000, Saudi Arabia led the adoption of a pledge by the Organization of Petroleum Exporting Countries and other major exporters that oil wouldn't be used as a political weapon.
Meanwhile, U.S. Energy Secretary Spencer Abraham said Iraq's use of oil as a political weapon should rally Congress to pass comprehensive energy legislation, including allowance of limited drilling in the Arctic National Wildlife Refuge, ANWR.
"At a time when Iraq is calling for an OPEC embargo on oil sales to America and has just announced a 30-day halt of oil sales, ANWR production could replace more than 35 years of Iraqi imports," Abraham said.
"Today's announcement by Iraq should remind us again of how our economy and national security are vulnerable to decisions made by countries abroad," he said.
The Energy Secretary said President George Bush's plan to allow oil and gas drilling on the ANWR coastal plain could yield one million barrels a day of new domestic oil production in an environmentally responsible manner. He called on the Senate to quickly pass the energy bill it is currently debating so that House and Senate conferees can send a final bill to the President for signature.
Abraham was speaking at a briefing on the Department of Energy's annual report on the outlook for summer gasoline prices.
The decision by Iraq -- which is not an OPEC member -- pressured economically sensitive stocks such as chemicals.
Meanwhile, U.S. Treasury prices slightly lower. The 10-year bond eased 13/32, its yield, which moves in the opposite direction of its price, rose to 5.25 percent from 5.20 percent late Friday.
In Europe, stock prices ended lower in moderate trading in London, Frankfurt and Paris, pressured by concerns over the tensions in the Middle East. The London International Stock Exchange's blue-chip FTSE-100 index lost 53.7 points, or 1.03 percent, to 5,179.9. The German DAX index fell 93.84 points, or 1.78 percent, to 5,166.69 and the French CAC-40 index fell 83.82 points, or 1.86 percent, to 4,431.88.
Analysts said stocks fell, pressured by the opening losses on Wall Street and uncertainty over earnings outlooks after the profit warning from IBM Corp.
Stocks also came under pressure from the continued tensions in the Middle East, which resulted in higher oil prices after Iraq halted oil exports for one month.
Earlier in Asia, prices on the Tokyo Stock Exchange ended slightly higher in light trading, supported by a favorable reading on the economy and strength in core technology and retail issues. Japan's blue-chip Nikkei Stock Average of 225 selective issues, which slipped 43.71 points Friday, rose 17.40 points, or 0.2 percent, to 11,352.89.
Analysts said stocks were supported by a report showing February machinery orders posted a better-than-expected increase of 10.8 percent from the previous month, underscoring hopes that the world's second biggest economy is recovering from a prolonged recession.
But, experts noted, the market's upside was capped amid uncertainty over the Middle East crisis.
Elsewhere in Asia, prices ended lower on the Hong Kong Stock Exchange as investors returned from a long holiday weekend. Markets in Hong Kong were closed Friday for a national holiday. The blue-chip Hang Seng Index dropped 107.69 points, or 1 percent, to 10,723.68.
Meanwhile, prices ended slightly lower on the Taiwan Stock Exchange. The Weighted Index slipped 16.26 points, or 0.26 percent, to 6,190.83. Taiwan's stock market was also closed Friday for a national holiday.
Prices also ended lower in post holiday trading on the South Korean Stock Exchange. The benchmark Kospi composite index fell 17.32 points, or 1.89 percent, to 900.69. South Korea's stock market was also closed Friday for a national holiday.
Elsewhere in the Pacific region, prices ended little changed on the Australian Stock Exchange. The blue-chip All Ordinaries Index added 0.10 point to 3,340.30.
