Stocks are rallying on Monday as the prospect of further rate cuts, and IBM's strong earnings, provided a ray of sunshine for investors. The Dow jumped +109.90, the S&P 500 is up +8.96, and the Nasdaq Composite is up +25.34.

International Business Machines (IBM | Quote | Chart | News | PowerRating) is up nearly 6% after reporting strong preliminary Q4 results (read more). The company said fourth-quarter earnings rose 24% from a year ago, helped by international orders and the weak dollar.

Sears (SHLS | Quote | Chart | News | PowerRating) is down nearly 7% after lowering its Q4 outlook (read more).

Harman International Industries (HAR | Quote | Chart | News | PowerRating) plunged 32% after revising its 2008 earnings guidance.

Gold and platinum hit record highs as the U.S. dollar neared record low territory versus the euro. A number of other commodities continued to climb due to dollar weakness.

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