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