U.S. Stocks to Watch: Tesla, D-Wave Quantum, IBM, Moderna, IONQ, UnitedHealth, Southwest Airlines and More

Dow Jones
2025/10/23

Stock futures were mostly higher Thursday with investors unfazed by an earnings miss from Tesla, while oil prices jumped after President Donald Trump imposed new sanctions on Russia's two biggest crude producers.

These stocks were poised to make moves Thursday:

Tesla Motors fell 3.1% after the electric-vehicle maker reported a decline of 37% in third-quarter net income. Adjusted earnings in the period of 50 cents a share missed analysts' estimates of 56 cents, even as total revenue jumped 12% to $28.1 billion, higher than Wall Street expectations of $26.5 billion. Automotive revenue of $21.2 billion topped estimates of $19.6 billion, boosted by a rush by consumers to buy EVs before the expiration of U.S. federal tax credits. Tesla's free cash flow in the quarter was $3.99 billion, the highest quarterly total in the company's history.

IONQ Inc. rose 14%, Rigetti Computing gained 12%, and D-Wave Quantum jumped 17% after The Wall Street Journal reported the Commerce Department was considering taking equity stakes in several quantum-computing companies in exchange for federal funding. IonQ, Rigetti, and D-Wave Quantum have been discussing the government becoming a shareholder, the Journal reported, citing people familiar with the matter. Quantum Computing, up 14% in premarket trading, and Atom Computing are considering similar arrangements, according to the Journal.

IBM swung to a profit in the third quarter as revenue of $16.33 billion rose 9% from a year earlier and beat Wall Steet estimates of $16.09 billion. Adjusted earnings in the quarter of $2.65 a share topped analysts' forecasts of $2.45. For the full year, IBM forecasts more than 5% revenue growth in constant currency and expects to generate about $14 billion in free cash flow. Shares, however, fell 6.7% in premarket trading as the stock's rally this year had set a high bar for results.

Moderna fell 4% after saying it would stop development of a vaccine designed to prevent birth defects caused by cytomegalovirus, or CMV, once among its most-watched experimental programs. Moderna had hoped its shot would be at least 49% effective at preventing CMV infections. But top-line data from a Phase 3 trial in 7,500 women found the shot was only between 6% and 23% effective.

U.S.-listed shares of SAP, the German software company, fell 3% after third-quarter earnings topped Wall Street forecasts but cloud revenue of EUR5.29 billion, up 27% from a year earlier, came in below projections of EUR5.32 billion.

Las Vegas Sands jumped 6% after the casino company reported third-quarter adjusted earnings of 78 cents a share, beating analysts' estimates of 62 cents, as revenue jumped 24% to $3.33 billion. Casino revenue in the quarter rose to $2.51 billion from $1.94 billion a year earlier. "We remain enthusiastic about our growth opportunities in both Macao and Singapore as we realize the benefits of our recently completed capital investment programs," said CEO Robert Goldstein.

Molina Healthcare tumbled 21% after it again cut its full-year guidance and reported lower third-quarter earnings because of underperformance in the healthcare-services provider's marketplace business. Net income of $79 million, or $1.51 a share, declined from $326 million, or $5.65 a year earlier. Adjusted earnings of $1.84 a share missed forecasts of $3.90. Peer insurer Centene dropped 6.1% while healthcare giant UnitedHealth fell 1.7%.

Southwest Airlines reported a surprise third-quarter adjusted profit of 11 cents a share, better than Wall Street expectations that called for a loss of 4 cents, as the discount carrier said "results are showing" from its strategy shift. Southwest reported record third-quarter revenue of $6.95 billion. The airline said it expects "meaningful margin expansion in the fourth quarter." The stock rose 1%.

Chip-equipment maker Lam Research fell 1.4% even its fiscal first-quarter adjusted earnings of $1.26 a share beat analysts' predictions of $1.22. Revenue rose to $5.32 billion from $4.17 billion a year earlier and topped expectations of $5.22 billion. "Lam's innovations are helping our customers address major AI-driven semiconductor manufacturing inflections," said CEO Tim Archer.

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