The forecast by Niles followed reports by analysts at Salomon Smith Barney and Morgan Stanley saying IBM's earnings would lag current estimates.
The S&P 500's largest companies also declined.
General Electric Co, the biggest company by market value, slid 75 cents to US$28.95. Microsoft Corp, the second-biggest, fell US$1.82 to US$52.28.
Citigroup Inc, the top financial-services company, fell US$0.69 to US$39.80. American International Group Inc, the biggest insurer, slumped US$1.01 to US$67. Wal-Mart Stores Inc, which generated the most revenue, retreated US$1.52 to US$54.98.
Amdocs Ltd plunged US$5.96 to US$8.60. The maker of billing software for phone companies said third-quarter profit excluding certain costs will be almost 40 percent less than its previous forecast.
Volume picked up with the quarterly "triple witching" expiration of stock-index futures, index options and options on stocks. Some 1.8 billion shares traded on the New York Stock Exchange, the ninth-most on record.
Trading usually quickens during "witching" sessions as investors buy or sell stocks and options to replace the ones that expire.
Almost four stocks fell for every three that advanced on the NYSE. Advancing and declining stocks were about even on the NASDAQ Stock Market.
Bed, Bath & Beyond Inc advanced US$1.76 to US$36.26. The biggest US household-goods retailer said first-quarter profit surged 54 percent.
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