* IBM falls after earnings fail to impress* Homebuilders up on strong NAHB numbers* Indexes up: Dow 1 pct, S&P 1.3 pct, Nasdaq 0.7 pctBy Angela MoonNEW YORK, Oct 18 (Reuters) - U.S. stocks rose on Tuesday,
overcoming what some saw as disappointing earnings from major
financial companies, while positive European news became a
trigger to rush into the market.All three major indexes started off lower on weak earnings
from Goldman Sachs and less-than-stellar results from Bank of
America. However, the European Central Bank was believed to be
buying Italian bonds, which helped turn around the market.”This market has such momentum when it comes to one
direction, and that is because of the lack of liquidity in the
market. We are not seeing a lot of volume,” said Tim Ghriskey,
chief investment officer at Solaris Asset Management in
Bedford Hills, New York.”So when a real seller or buyer comes in, it moves the
market a lot and people follow.”Trading volume continued to be low, with just 4.8 billion
shares exchanging hands on the New York Stock Exchange, NYSE
Amex and Nasdaq by late afternoon.Volatility also was evident with the CBOE Volatility Index
VIX above 30.The Dow Jones industrial average rose 117.99 points,
or 1.04 percent, at 11,514.99. The Standard & Poor’s 500 Index was up 15.85 points, or 1.32 percent, at 1,216.71. The
Nasdaq Composite Index gained 19.29 points, or 0.74
percent, at 2,634.21.Tuesday’s gains followed the worst loss by the S&P 500 in
two weeks on Monday on the heels of the benchmark index’s first
two-week rally since July.Corporate earnings were mixed on Tuesday.Bank of America Corp jumped 7.8 percent to $6.50
after it reported a third-quarter profit but showed its main
businesses struggled as income from lending and investment
banking fell.The KBW bank index advanced 3.7 percent.Goldman Sachs Group Inc also added 2.4 percent to
$99.22 after reporting a rare loss.State Street Corp climbed 6.5 percent to $36.06
after its net income rose, lifted by tax benefits and
double-digit gains from servicing and investment management
fees.The KBW bank index advanced 3.7 percent.But International Business Machines Corp fell 4.5
percent to $178.97 after Big Blue’s earnings beat failed to
stem worries about a slowdown in technology spending.U.S. homebuilder stocks were helped by strong homebuilder
sentiment data, signaling a recovery in the housing market.Shares of KB Home rose 8.4 percent to $6.82 and
Pulte Group Inc was up 11 percent to $4.45.The National Association of Home Builders (NAHB)/Wells
Fargo Sentiment Index climbed to 18, the highest level since
the expiration of the homebuyer tax credit in 2010, data from
the group showed.Moody’s cautioned it may slap a negative outlook on
France’s Aaa credit rating in the next three months if costs
from helping to bail out banks and other euro zone members
stretch its budget too thin.Another negative was data showing China’s growth slowed in
the third quarter to its weakest pace since early
2009.
Earlier 10-year yields rose to 5.87 percent, their highest
since the central bank began purchasing Italian debt in August
as part of an effort to cap the country’s rising cost of
borrowing. The 10-year yield was last at 5.80 percent, 6 basis
points higher on the day.
Rockcityclub.com launches October 14, dubbing itself a “social music network” with aggressive plans to consolidate services such as artist development, promotion and distribution into a one-stop shop integrated with Facebook, Twitter and other social media.Jack Wishna, who has previously brokered Las Vegas concert deals for the likes of Michael Jackson and Britney Spears and is chief executive of Rock City Club parent company Rockrena, told Reuters the site is designed to create tomorrow’s music stars rather than simply identify them.”Everyone looks at discovering talent these days from what they see,” said Wishna. “They see ‘American Idol.’ They see ‘The X-Factor.’ They see ‘The Voice’ and MySpace and YouTube. It’s a crowded field, and all they do is look for the needle in the haystack. What we do, in essence, is take care of the haystack.”Rock City Club’s ambitious platform takes a broad approach to developing artists online. Performers register via Facebook or Twitter and gain access to applications that help organize and distribute music, raise their profile among potential fans and allow them to interact with listeners.As artists gain a following, Rock City plans to offer the most popular performers a chance to stream live shows and compete for a performance contract at the Palms Resort and Casino in Las Vegas. Selected artists also get coached by the “Producer’s Circle,” a group of on-staff advisors whose credits include songs for Madonna and Aerosmith.OLD SCHOOL, ONLINEWishna initially formed the idea with the late Don Kirshner, the famed music promoter and producer who helped launch the careers of Carole King and Neil Diamond. Rock City Club wants to merge new Web technology with Kirshner’s old-school approach to developing potential stars by working with talent that might not fit the reality TV mold.”American Idol rates popularity,” he said. “We are going to focus on core values like stage presence, talent and marketability that have made big names in the past,” he said.Fans can make money, too. If invited, a widget is placed on their Facebook page allowing friends to hear music from bands they support. When people purchase individual tracks online, the fan will receive 25 percent of the profits from each sale.Rock City Club, which charges a $12.95 monthly user fee, already has significant competition. ReverbNation, established in 2006, includes many of the same social media components at no charge, although it also has a “premium” package with more features at an additional cost.Additionally, MySpace recently recruited Justin Timberlake to help their rebranding as a music-based social network, and simply posting homemade videos on YouTube remains the easiest and cheapest way to gain exposure. Just ask Justin Beiber.Yet Wishna remains confident Rock City Club will offer more value and real results than its rivals.”There are a lot of firms who do a little of what we do, but there’s not one firm that does everything we do. We took a broken model, found ways to fix it and enhance the experience for the artists and the fans,” said Wishna.
