Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel on another
Speaker 3: busy morning for earnings and the big story we've got
Speaker 3: to start with, of course, Valerie is Tesla. We were
Speaker 3: expecting a profit drop, but not like this.
Speaker 1: Good morning, Good morning, Tesla shares in the red, as
Speaker 1: you mentioned, disappointing investors on their operating income. They're operating profit.
Speaker 1: The shares are down to three point three percent in
Speaker 1: pre market trade now. It was due to a huge
Speaker 1: factor of rising costs, which undermined their record vehicle sales
Speaker 1: for the quarter. Their operating profit sank forty percent versus
Speaker 1: a year ago. They're also their revenue when it comes
Speaker 1: to regulatory tax credits was down dramatically and will be
Speaker 1: an ongoing issue than you moving forward. On the back
Speaker 1: of the shift away from green funding from the Trump administration,
Speaker 1: the CEO Elon Musk was still touting his ambitious initiatives
Speaker 1: in the earnings call, including humanoid robots and other AI programs,
Speaker 1: but there's still a lack of substantial update about cost
Speaker 1: and timeline of some of these more ambitious projects, such
Speaker 1: as the fully autonomous vehicles, the robotaxi rollouts, and those
Speaker 1: humanoid robots that seem to be quite key Lisa investor's
Speaker 1: mind for Tesla's future.
Speaker 3: And some disappointing results as well from a stalwart in
Speaker 3: big tech IBM.
Speaker 1: Yeah, IBM shares feeling underwhelmed this morning, down six point
Speaker 1: seven percent in pre market trade, disappointing revenue and a
Speaker 1: key software category. Now this is tied to the AI trade.
Speaker 1: Their unit called red Hat hybrid unit. Wall Street was
Speaker 1: very excited about it because it's mainly a cloud services
Speaker 1: division of IBM. There was a slowdown in sales and
Speaker 1: then a spark concern among investors. Third quarter sales or
Speaker 1: this hybrid unit increase fourteen percent, which is a slowdown
Speaker 1: from the previous period and below the analyst average estimate
Speaker 1: around sixteen So a lot of focus, especially at IBM,
Speaker 1: around the AI trade, even though they did beat on
Speaker 1: top line revenue.
Speaker 3: Now on the flip side, we're seeing a lot of
Speaker 3: action in quantum computing stock. Some of those names are
Speaker 3: seeing a big spike this morning.
Speaker 1: Yeah, they're very volatile, but they're all volatile in the
Speaker 1: green direction. This morning, ion q up ten percent, Rerighetti
Speaker 1: up nearly six d Wave up ten percent. This is
Speaker 1: all on the back of a Wall Street Journal article
Speaker 1: that the Trump administration is exploring equity stakes in these
Speaker 1: companies in return for federal funding. Now, this could be
Speaker 1: a signal, Nathan, that the government is looking to expand
Speaker 1: their interventions and industries that are seen as critical for
Speaker 1: the US's future. And I mean honestly, a breakout or
Speaker 1: breakthrough in quantum computing would surely make data centers powering
Speaker 1: AI be multiple times more efficient those Possibly the Trump
Speaker 1: administration has an eye on it.
Speaker 3: And this morning we've got earnings from Honeywell, among others.
Speaker 3: How's Honeywell doing well?
Speaker 1: This is telling us the key theme that aerospace commercial
Speaker 1: airspace is doing very well. This quarter, Honeywell four and
Speaker 1: a half percent raise its full year outlook and reported
Speaker 1: earnings that beat expectations, boosted by the company's aerospace unit.
Speaker 1: Ahead of a planned breakup in the middle of next year,
Speaker 1: it plans to spin out its aerospace and automation business,
Speaker 1: and now this conglomerate houses aerospace building technologies, safety technologies,
Speaker 1: and performance materials. But these results from Honeywell were really
Speaker 1: the latest to highlight the momentum for commercial aerospace manufacturers.
Speaker 1: We had positive news from ge Aerospace and RTX earlier
Speaker 1: this week, so really falling along with the trend there now.
Speaker 1: Sales at Honeywell's aerospace unit jump fifteen percent in the
Speaker 1: most recent quarter.
Speaker 2: This stock mover's report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news Wall Street, and for the latest market moving headlines.
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