Ahead of its Q3 report, International Business Machines (IBM) traded at an all-time high of $237.37. This morning, expect IBM stock to give up some of the gains.
IBM reported revenue growing by 1.5% Y/Y to $14.97 billion. Despite software revenue growth (+10%), consulting revenue did not grow. Infrastructure revenue fell by 7%. The firm expects Q4 revenue will grow at Q3 levels (of 1.5%).
Technology investors should avoid IBM stock until the selling pressure eases in the coming weeks.
McDonald’s (MCD) is a compelling trade after the stock fell by 5.12% on Wednesday. News that an E. coli outbreak led to a casualty and dozens getting sick hurt the share price.
Expect management to alleviate customer concerns about food quality. It will review its food processing to minimize another outbreak.
In the AI chip sector, watch Nvidia (NVDA) today. The stock fell by 2.81%, after topping an all-time high. Traders will try to take the market capitalization from $3.423 trillion to above $3.5 trillion. If Apple (AAPL) falls on speculation that iPhone 16 sales slumped, Nvidia will be the most valuable company.
Nvidia’s stock weakness could hurt Broadcom (AVGO), Qualcomm (QCOM), Intel (INTC), and Micron (MU) lower. However, after Texas Instruments (TXN) rallied post-earnings, those chip stocks could bounce back today.