The Dow Jones industrial average rose 67.32 to 5,422.01, down slightly from a morning gain of 76. Gains in IBM shares accounted for more than half of the blue-chip barometer's advance.
Advancing issues outnumbered decliners by a 13-to-7 margin on the New York Stock Exchange, with 1,543 up, 821 down and 783 unchanged. NYSE volume totaled 403.62 million shares vs. 460.99 million in the previous session.
The technology-laden Nasdaq composite index also drew a lift from IBM's report, breaking out of a steep, four-session slump. It ended the day up 17.43 to 1,059.80.
Other broad-market measures also posted strong gains.
The NYSE composite index rose 2.30 to 338.37; and the Standard & Poor's 500-stock index rose 4.53 to 631.18.
The American Stock Exchange's market value index rose 3.59 to 532.59.
Stocks were also bolstered by falling interest rates in the bond market, which rallied on today's news that orders for big-ticket durable goods and sales of existing homes both slowed in June.
The yield on the 30-year Treasury bond - a benchmark used to determine the interest charged on many types of loans - briefly dipped below 7 percent, heartening stock investors concerned about slower consumer spending and rising company expenses.
s the bond market stumbled, sending the yield on the 30-year Treasury back above 7 percent.