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Watch Art Cashin: Is IBM an omen for earnings?

Art Cashin, UBS director of floor operations at the NYSE, said the stock market is trying to figure out whether IBM's disappointing earnings results are an isolated case or an omen for the rest of earnings season.

"So far they're [traders] playing it as if it's a one-off, isolated case," Cashin said.

Big Blue posted a big miss on earnings and sales as sales slowed in its hardware and services businesses. The tech giant also warned it will miss its earnings target of $20 per share next year.

IBM fell 8 percent in Monday's trade, pushing the stock to a three-year low. The Dow Jones Industrial Average, which is a price-weighted index, is getting hurt the worst among the major averages as IBM is shaving off nearly 90 points from the index.

Read MoreUS stock indexes mostly rise as Apple outshines IBM

Increasing competition and a rapidly changing environment are also weighing on IBM. "There's a lot of companies that are going to have to work hard to reinvent themselves," Cashin said. "For now the market is saying we'll worry about that tomorrow."

Despite the downbeat news from IBM, the S&P 500 and Nasdaq are higher as the market has calmed down from last week's whipsaw action. Volume and volatility have retreated and WTI crude oil is staying above the crucial $80 level.

Also helping stocks are eased fears about Ebola. As of midnight Sunday, 43 of the 48 people who had original contacts with Ebola victim Thomas Eric Duncan were deemed "Ebola-free."

"It [Ebola worry] has diminished greatly," Cashin noted. "That's given us a little bit of breathing room."

—By CNBC's Kristen Scholer