WEBVTT - Tesla Dips; IBM Falls; Quantum Computing Stocks Rally

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Titel on another

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<v Speaker 3>busy morning for earnings and the big story we've got

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<v Speaker 3>to start with, of course, Valerie is Tesla. We were

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<v Speaker 3>expecting a profit drop, but not like this.

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<v Speaker 1>Good morning, Good morning, Tesla shares in the red, as

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<v Speaker 1>you mentioned, disappointing investors on their operating income. They're operating profit.

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<v Speaker 1>The shares are down to three point three percent in

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<v Speaker 1>pre market trade now. It was due to a huge

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<v Speaker 1>factor of rising costs, which undermined their record vehicle sales

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<v Speaker 1>for the quarter. Their operating profit sank forty percent versus

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<v Speaker 1>a year ago. They're also their revenue when it comes

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<v Speaker 1>to regulatory tax credits was down dramatically and will be

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<v Speaker 1>an ongoing issue than you moving forward. On the back

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<v Speaker 1>of the shift away from green funding from the Trump administration,

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<v Speaker 1>the CEO Elon Musk was still touting his ambitious initiatives

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<v Speaker 1>in the earnings call, including humanoid robots and other AI programs,

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<v Speaker 1>but there's still a lack of substantial update about cost

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<v Speaker 1>and timeline of some of these more ambitious projects, such

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<v Speaker 1>as the fully autonomous vehicles, the robotaxi rollouts, and those

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<v Speaker 1>humanoid robots that seem to be quite key Lisa investor's

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<v Speaker 1>mind for Tesla's future.

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<v Speaker 3>And some disappointing results as well from a stalwart in

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<v Speaker 3>big tech IBM.

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<v Speaker 1>Yeah, IBM shares feeling underwhelmed this morning, down six point

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<v Speaker 1>seven percent in pre market trade, disappointing revenue and a

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<v Speaker 1>key software category. Now this is tied to the AI trade.

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<v Speaker 1>Their unit called red Hat hybrid unit. Wall Street was

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<v Speaker 1>very excited about it because it's mainly a cloud services

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<v Speaker 1>division of IBM. There was a slowdown in sales and

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<v Speaker 1>then a spark concern among investors. Third quarter sales or

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<v Speaker 1>this hybrid unit increase fourteen percent, which is a slowdown

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<v Speaker 1>from the previous period and below the analyst average estimate

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<v Speaker 1>around sixteen So a lot of focus, especially at IBM,

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<v Speaker 1>around the AI trade, even though they did beat on

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<v Speaker 1>top line revenue.

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<v Speaker 3>Now on the flip side, we're seeing a lot of

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<v Speaker 3>action in quantum computing stock. Some of those names are

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<v Speaker 3>seeing a big spike this morning.

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<v Speaker 1>Yeah, they're very volatile, but they're all volatile in the

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<v Speaker 1>green direction. This morning, ion q up ten percent, Rerighetti

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<v Speaker 1>up nearly six d Wave up ten percent. This is

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<v Speaker 1>all on the back of a Wall Street Journal article

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<v Speaker 1>that the Trump administration is exploring equity stakes in these

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<v Speaker 1>companies in return for federal funding. Now, this could be

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<v Speaker 1>a signal, Nathan, that the government is looking to expand

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<v Speaker 1>their interventions and industries that are seen as critical for

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<v Speaker 1>the US's future. And I mean honestly, a breakout or

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<v Speaker 1>breakthrough in quantum computing would surely make data centers powering

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<v Speaker 1>AI be multiple times more efficient those Possibly the Trump

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<v Speaker 1>administration has an eye on it.

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<v Speaker 3>And this morning we've got earnings from Honeywell, among others.

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<v Speaker 3>How's Honeywell doing well?

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<v Speaker 1>This is telling us the key theme that aerospace commercial

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<v Speaker 1>airspace is doing very well. This quarter, Honeywell four and

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<v Speaker 1>a half percent raise its full year outlook and reported

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<v Speaker 1>earnings that beat expectations, boosted by the company's aerospace unit.

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<v Speaker 1>Ahead of a planned breakup in the middle of next year,

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<v Speaker 1>it plans to spin out its aerospace and automation business,

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<v Speaker 1>and now this conglomerate houses aerospace building technologies, safety technologies,

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<v Speaker 1>and performance materials. But these results from Honeywell were really

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<v Speaker 1>the latest to highlight the momentum for commercial aerospace manufacturers.

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<v Speaker 1>We had positive news from ge Aerospace and RTX earlier

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<v Speaker 1>this week, so really falling along with the trend there now.

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<v Speaker 1>Sales at Honeywell's aerospace unit jump fifteen percent in the

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<v Speaker 1>most recent quarter.

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