Market Overview - US stocks traded flat with the S&P 500 rising fractionally, while the Dow Jones Industrial Average and Nasdaq Composite hovered above the flat line amid mixed earnings reports from Tesla and IBM [1] Oil Market - Oil futures surged over 5% following US sanctions on Russia's major producers, with Brent crude nearing $66 per barrel and West Texas Intermediate approaching $62 [2] Company Earnings - Tesla shares fell nearly 5% after mixed third-quarter results, while IBM stock dropped around 6% due to stronger-than-expected profits being offset by disappointing software revenue [3] - American Airlines shares increased as its fourth-quarter earnings guidance exceeded expectations, while T-Mobile's shares dipped despite a larger-than-expected customer base growth [4] Trade Relations - China announced upcoming talks with US officials, with President Trump indicating a scheduled meeting with Chinese President Xi, providing some market reassurance amid rising tensions [5] Quantum Computing Sector - The Trump administration is reportedly in discussions to acquire stakes in several quantum computing companies, leading to a surge in shares of targeted firms like IonQ and Rigetti Computing [6]

US stocks climbed on Thursday as oil prices surged amid Russia sanctions and as Wall Street parsed through a fresh batch of quarterly results after Tesla (TSLA) and IBM (IBM) earnings fell short. The tech-heavy Nasdaq Composite (^IXIC) led the gains, rising 0.7%, while the S&P 500 (^GSPC) added 0.4%. The Dow Jones Industrial Average (^DJI) drifted 0.1% higher. Oil futures spiked around 6% after the US placed sanctions on Russia's giant producers, piling pressure on President Putin to end the war in Ukra ...

Financial Data and Key Metrics Changes - IBM reported a revenue growth of 7%, the highest in several years, with all segments accelerating sequentially [5][14] - Adjusted EBITDA margin expanded by 290 basis points, with adjusted EBITDA growth of 22% and operating earnings per share growth of 15% [15][20] - Free cash flow reached $7.2 billion, marking the highest nine-month free cash flow margin in reported history [22] Business Line Data and Key Metrics Changes - Software revenue grew by 9%, driven by a 22% increase in Automation and a 12% increase in Red Hat revenue [16][18] - Consulting revenue increased by 2%, with Intelligent Operations up 4% and a significant return to growth in the Consulting segment [18][19] - Infrastructure revenue grew by 15%, with Hybrid Infrastructure up 26% and IBM Z revenue increasing by 59% year-over-year [17][20] Market Data and Key Metrics Changes - The demand for AI services is growing, with IBM's GenAI book of business exceeding $9.5 billion [9][40] - The hybrid cloud market remains strong, with all major subscription offerings gaining market share [16][24] - The company expects Infrastructure to contribute over 1.5 points to IBM's revenue growth this year [25] Company Strategy and Development Direction - IBM's strategy focuses on hybrid cloud and artificial intelligence, aiming to modernize client infrastructures and enhance productivity [5][6] - The company is committed to achieving $4.5 billion in annual run-rate productivity savings by the end of the year [8][21] - IBM is actively pursuing M&A opportunities that align with its hybrid cloud and AI strategy, emphasizing the importance of synergy and growth potential [74][76] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about broad-based demand from clients despite macro uncertainties [6][23] - The company raised its expectations for revenue growth to more than 5% and free cash flow to about $14 billion for the year [13][23] - The impact of the federal government shutdown is expected to be minimal, with critical systems remaining unaffected [38][39] Other Important Information - IBM's Client Zero approach has driven over 1,000 engagements this year, showcasing the effectiveness of its internal technology solutions [9] - The company is on track to demonstrate the first error-corrected quantum computer by 2028, highlighting its commitment to innovation in quantum computing [12] Q&A Session Summary Question: Free cash flow dynamics and capital allocation - Management highlighted a strong free cash flow engine, with $7.2 billion generated year-to-date, and discussed factors contributing to the $14 billion estimate for the year [30][31] Question: AI adoption and its financial impact - Management confirmed that AI adoption is a significant contributor to revenue growth, with a strong pipeline of consulting projects utilizing AI capabilities [39][40] Question: Software growth expectations and acquisitions - Management expressed confidence in maintaining double-digit growth in Software, driven by strong performance in Red Hat and Automation, while also considering future M&A opportunities [50][52] Question: Cloud infrastructure opportunities - Management noted that IBM benefits from the growth of hyperscalers, leveraging partnerships to enhance consulting and software deployment [62][66] Question: M&A strategy and potential targets - Management reiterated the importance of M&A in their strategy, focusing on targets that align with their hybrid cloud and AI initiatives, while remaining open to larger transactions if they meet strategic criteria [72][76]

Tesla Financial Performance - Tesla's third quarter revenue reached $28.1 billion, exceeding estimates of $26.36 billion, indicating a significant revenue beat [1] - Adjusted EPS was reported at 50 cents, slightly below the expected 54 cents, marking an EPS miss [2][18] - Free cash flow for the quarter was reported at $3.99 billion, significantly higher than the estimated $1.25 billion, representing a 46% year-over-year increase [13][43] Market Dynamics and Product Developments - There is speculation about a pull forward in demand due to the expiration of EV tax credits at the end of September, which may have contributed to the revenue increase [3][8] - New product offerings in the China market, including the Cyber Cab, Tesla Semi, and Mega Pac 3, are on schedule for volume production starting in 2026 [4] - The energy and storage revenue saw a notable increase of 44% year-over-year, outpacing the 6% growth in the auto business [43] Investor Sentiment and Future Outlook - The market response to Tesla's earnings report has been muted, with investors awaiting insights from the upcoming conference call [5][18] - Key areas of focus for investors include updates on autonomous driving, robo-taxis, and the company's strategy in the competitive EV market, particularly in China [5][11][45] - There are concerns regarding the company's ability to maintain demand following the expiration of tax credits and the effectiveness of newly launched lower-priced models [44]

⚡️ LATEST: Google unveiled Quantum Echoes, a new algorithm said to be 13,000 times faster than classical ones, paving the way for advances in AI and science. https://t.co/z8zYYV13J0 ...

Quantum Threat to Bitcoin Grows as Google Reveals Latest Breakthrough► https://t.co/TCN8PBh3YN https://t.co/TCN8PBh3YN ...

Quantum Computing Breakthrough - Google's quantum chip, named Willow, solved a 150-year problem in 2 hours [1] - Willow achieved verifiable quantum advantage, validated by physics [1] - The quantum chip operates at 13,000x classical speed with 99.9% fidelity across 105 qubits [1] Technological Implications - The breakthrough signifies a major advancement in quantum computing capabilities [1] - Quantum computing poses a potential threat exceeding that of AI [1]

Welcome back to the exchange. Meta partnering with Blue Owl Capital on a 27 billion joint venture agreement to fund and develop the company's massive data center in Louisiana. This move comes just weeks after Meta announced a deal with Coree for up to 14.2% billion worth computing capacity.Now, Cororeweave notably rents Nvidia chips to power that cloud infrastructure. This is just one example of the tangled dealmaking web happening across AI with chipmakers, cloud providers, startups all intertwined and let ...

Quantum Computing Advancement - Google unveils major quantum computing breakthrough [1] - New algorithm runs 13,000x faster than world's best supercomputer [1] - Google anticipates useful applications of quantum technology within 5 years [1] Potential Impact on Cryptocurrency - Bitcoin needs to stay ahead of quantum computing advancements [1]

Federal Reserve Operations - Demand for the Federal Reserve's overnight reverse repurchase agreement (RRP) operation decreased, with 8 counterparties taking $4.005 billion, down from $4.699 billion and 10 bids previously, indicating less excess liquidity in the financial system [2][7]. Michelin - Michelin's CEO, Florent Menegaux, confirmed that there is "no reason to change dividend policy," with a €1.38 dividend per share for the 2024 fiscal year approved, reflecting a 2.2% increase from the previous year and a payout ratio of 52% of net income, showcasing the company's confidence in its strategic execution [3][7]. Automotive Industry - Former President Trump announced that General Motors (GM) CEO Mary Barra and Ford Motor Company (F) Executive Chairman Bill Ford thanked him for implementing 25% tariffs on imported medium- and heavy-duty trucks, set to take effect on November 1, 2025, aimed at boosting domestic manufacturing [4][7]. Job Market - Initial jobless claims filed by federal workers surged by 121% week-over-week to 7,244 for the week ending October 11, 2025, the highest level since the 2019 government shutdown, attributed to the ongoing federal government shutdown [8][9]. Cattle Industry - President Trump called for cattle ranchers to lower prices amidst record-high beef prices, suggesting importing beef from Argentina to increase supply and lower consumer costs, a proposal that faced strong opposition from U.S. cattle producers [9].