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US stock market report – IBM & Tesla shares in focus

US stock markets continued their recent strength, with the Nasdaq outperforming, gaining 0.6% on the support of Tesla (NASDAQ: TSLA) which added more than 3%.

The Dow Jones underperformed, finishing broadly flat while the S&P 500 climbed 0.3% as company-specific news separates the weak from the strong.

IBM share price tanks

It was International Business Machines (NYSE: IBM) that detracted most from the Dow, falling nearly 10% after announcing a near 30% reduction in profit despite revenue remaining broadly flat year on year.

Management responded by announcing its intended spin-off of Kyndryl, which despite the name takes care of the boring IT infrastructure work of major enterprises.

Tesla’s record

It was a much brighter day for Tesla which reported record electric vehicle sales over the summer despite many competitors blaming a shortage of computer chips on their sales.

This delivered Tesla’s biggest quarterly earnings result ever, hitting US$1.62 billion, 500% higher than the same time last year.

Revenue also increased more than 10% to US$13.76 billion with a boost in margins being seen by many as a sign that the company may well be able to live up to its lofty tech expectations.

US stock market movers

These US stocks were among the biggest movers on Thursday.

Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to open broadly flat on Friday. For a round-up of the latest news, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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