1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,840 --> 00:00:18,799 Speaker 3: Let's take a look at some stocks on the move today. 5 00:00:18,840 --> 00:00:22,240 Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel on another 6 00:00:22,360 --> 00:00:24,720 Speaker 3: busy morning for earnings and the big story we've got 7 00:00:24,720 --> 00:00:27,680 Speaker 3: to start with, of course, Valerie is Tesla. We were 8 00:00:27,720 --> 00:00:30,400 Speaker 3: expecting a profit drop, but not like this. 9 00:00:30,440 --> 00:00:33,239 Speaker 1: Good morning, Good morning, Tesla shares in the red, as 10 00:00:33,280 --> 00:00:37,800 Speaker 1: you mentioned, disappointing investors on their operating income. They're operating profit. 11 00:00:37,840 --> 00:00:40,479 Speaker 1: The shares are down to three point three percent in 12 00:00:40,560 --> 00:00:44,520 Speaker 1: pre market trade now. It was due to a huge 13 00:00:44,520 --> 00:00:48,800 Speaker 1: factor of rising costs, which undermined their record vehicle sales 14 00:00:48,960 --> 00:00:52,839 Speaker 1: for the quarter. Their operating profit sank forty percent versus 15 00:00:52,920 --> 00:00:55,400 Speaker 1: a year ago. They're also their revenue when it comes 16 00:00:55,440 --> 00:00:59,240 Speaker 1: to regulatory tax credits was down dramatically and will be 17 00:00:59,280 --> 00:01:01,880 Speaker 1: an ongoing issue than you moving forward. On the back 18 00:01:01,920 --> 00:01:04,880 Speaker 1: of the shift away from green funding from the Trump administration, 19 00:01:05,360 --> 00:01:09,920 Speaker 1: the CEO Elon Musk was still touting his ambitious initiatives 20 00:01:09,920 --> 00:01:13,800 Speaker 1: in the earnings call, including humanoid robots and other AI programs, 21 00:01:13,840 --> 00:01:17,360 Speaker 1: but there's still a lack of substantial update about cost 22 00:01:17,520 --> 00:01:20,720 Speaker 1: and timeline of some of these more ambitious projects, such 23 00:01:20,760 --> 00:01:24,160 Speaker 1: as the fully autonomous vehicles, the robotaxi rollouts, and those 24 00:01:24,240 --> 00:01:27,640 Speaker 1: humanoid robots that seem to be quite key Lisa investor's 25 00:01:27,680 --> 00:01:28,839 Speaker 1: mind for Tesla's future. 26 00:01:29,160 --> 00:01:31,920 Speaker 3: And some disappointing results as well from a stalwart in 27 00:01:31,959 --> 00:01:33,200 Speaker 3: big tech IBM. 28 00:01:33,560 --> 00:01:37,760 Speaker 1: Yeah, IBM shares feeling underwhelmed this morning, down six point 29 00:01:37,800 --> 00:01:41,600 Speaker 1: seven percent in pre market trade, disappointing revenue and a 30 00:01:41,720 --> 00:01:45,840 Speaker 1: key software category. Now this is tied to the AI trade. 31 00:01:45,920 --> 00:01:50,160 Speaker 1: Their unit called red Hat hybrid unit. Wall Street was 32 00:01:50,280 --> 00:01:53,480 Speaker 1: very excited about it because it's mainly a cloud services 33 00:01:53,520 --> 00:01:57,000 Speaker 1: division of IBM. There was a slowdown in sales and 34 00:01:57,040 --> 00:02:00,120 Speaker 1: then a spark concern among investors. Third quarter sales or 35 00:02:00,200 --> 00:02:04,080 Speaker 1: this hybrid unit increase fourteen percent, which is a slowdown 36 00:02:04,120 --> 00:02:07,680 Speaker 1: from the previous period and below the analyst average estimate 37 00:02:07,760 --> 00:02:11,160 Speaker 1: around sixteen So a lot of focus, especially at IBM, 38 00:02:11,320 --> 00:02:13,560 Speaker 1: around the AI trade, even though they did beat on 39 00:02:13,639 --> 00:02:14,680 Speaker 1: top line revenue. 40 00:02:14,760 --> 00:02:16,520 Speaker 3: Now on the flip side, we're seeing a lot of 41 00:02:16,560 --> 00:02:19,760 Speaker 3: action in quantum computing stock. Some of those names are 42 00:02:19,760 --> 00:02:21,280 Speaker 3: seeing a big spike this morning. 43 00:02:21,440 --> 00:02:23,480 Speaker 1: Yeah, they're very volatile, but they're all volatile in the 44 00:02:23,480 --> 00:02:26,880 Speaker 1: green direction. This morning, ion q up ten percent, Rerighetti 45 00:02:27,080 --> 00:02:30,639 Speaker 1: up nearly six d Wave up ten percent. This is 46 00:02:30,680 --> 00:02:33,480 Speaker 1: all on the back of a Wall Street Journal article 47 00:02:33,840 --> 00:02:38,359 Speaker 1: that the Trump administration is exploring equity stakes in these 48 00:02:38,400 --> 00:02:41,000 Speaker 1: companies in return for federal funding. Now, this could be 49 00:02:41,080 --> 00:02:45,120 Speaker 1: a signal, Nathan, that the government is looking to expand 50 00:02:45,240 --> 00:02:48,560 Speaker 1: their interventions and industries that are seen as critical for 51 00:02:48,720 --> 00:02:52,480 Speaker 1: the US's future. And I mean honestly, a breakout or 52 00:02:52,560 --> 00:02:56,720 Speaker 1: breakthrough in quantum computing would surely make data centers powering 53 00:02:56,760 --> 00:03:00,760 Speaker 1: AI be multiple times more efficient those Possibly the Trump 54 00:03:00,800 --> 00:03:02,400 Speaker 1: administration has an eye on it. 55 00:03:02,720 --> 00:03:06,440 Speaker 3: And this morning we've got earnings from Honeywell, among others. 56 00:03:06,440 --> 00:03:07,760 Speaker 3: How's Honeywell doing well? 57 00:03:07,760 --> 00:03:10,639 Speaker 1: This is telling us the key theme that aerospace commercial 58 00:03:10,639 --> 00:03:13,639 Speaker 1: airspace is doing very well. This quarter, Honeywell four and 59 00:03:13,639 --> 00:03:16,600 Speaker 1: a half percent raise its full year outlook and reported 60 00:03:16,639 --> 00:03:21,120 Speaker 1: earnings that beat expectations, boosted by the company's aerospace unit. 61 00:03:21,200 --> 00:03:23,960 Speaker 1: Ahead of a planned breakup in the middle of next year, 62 00:03:24,000 --> 00:03:26,680 Speaker 1: it plans to spin out its aerospace and automation business, 63 00:03:26,919 --> 00:03:32,200 Speaker 1: and now this conglomerate houses aerospace building technologies, safety technologies, 64 00:03:32,240 --> 00:03:35,720 Speaker 1: and performance materials. But these results from Honeywell were really 65 00:03:35,760 --> 00:03:40,360 Speaker 1: the latest to highlight the momentum for commercial aerospace manufacturers. 66 00:03:40,400 --> 00:03:44,000 Speaker 1: We had positive news from ge Aerospace and RTX earlier 67 00:03:44,040 --> 00:03:47,120 Speaker 1: this week, so really falling along with the trend there now. 68 00:03:47,160 --> 00:03:50,360 Speaker 1: Sales at Honeywell's aerospace unit jump fifteen percent in the 69 00:03:50,360 --> 00:03:51,200 Speaker 1: most recent quarter. 70 00:03:52,480 --> 00:03:56,520 Speaker 2: This stock mover's report from Bloomberg Radio. Check back with 71 00:03:56,600 --> 00:03:59,160 Speaker 2: us throughout the day for the latest roundup of companies 72 00:03:59,240 --> 00:04:03,240 Speaker 2: making news Wall Street, and for the latest market moving headlines. 73 00:04:03,440 --> 00:04:07,440 Speaker 2: Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg 74 00:04:07,480 --> 00:04:10,560 Speaker 2: dot com, and on Applecarplay and Android Auto with the 75 00:04:10,600 --> 00:04:11,960 Speaker 2: Bloomberg Business app.