IBM (IBM) shares are under pressure after releasing mixed third quarter results showing artificial intelligence (AI) and software growth with weakness in other areas. Tesla (TSLA) stock is on the rise after the electric vehicle (EV) maker kicked off “Magnificent Seven” earnings. With Alphabet (GOOG, GOOGL), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Apple (AAPL) earnings on deck, Synovus Trust senior portfolio manager Daniel Morgan joins Seana Smith and Madison Mills to discuss whether IBM or Tesla earnings are a better indicator of what investors should expect of Big Tech earnings. Morgan explains that IBM’s earnings were mixed but ultimately supported the AI story, “The IBM number wasn't bad. They obviously missed on revenues. But I think the expectations coming into that third quarter report were extremely elevated … It's really kind of a mixed report because they did say they generated about $3 billion in revenues directly from generative AI, and of course, everyone's really focused on that.” While IBM’s mixed results send the stock lower, Tesla, which also reported mixed results, soars. Morgan says he thinks of Tesla as being “kind of clumped into” the Magnificent Seven group. “Personally, I don't see how Tesla fits into that group. To me, they're an automaker, but they seem to be rolled into the tech group.” He notes that the positive reaction to Tesla’s earnings adds to the “good momentum” that comes into Big Tech's earnings. Big Tech earnings offer insights into how companies are spending on tech and their macro-level outlook. Morgan says that macroeconomic conditions continue to affect Big Tech spending as companies cut tech spending during heightened recession fears. He adds that the IBM report did have “some indication” of a slowdown of tech spending, with the IBM CEO saying, “One of the reasons why they fell up short in their consulting segment was the fact that CIOs are using money that would have been designated for consulting, and they're moving that into AI. They're not populating both. So we are seeing little bits of evidence that we may see some slowdown.” To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Naomi Buchanan...

(Bloomberg) -- Google’s partnership with AI firm Anthropic is at risk of being derailed in the UK after the competition watchdog called for further investigation into the pact’s potential impact.Most Read from BloombergRobotaxis Are No Friend of Public TransportationBooming Cambridge Exposes England’s Widening Wealth GapOman Sees an Urban Future Distinct From Dubai and Abu DhabiClimate Change Is Killing Buildings in Slow MotionArgentina Drug Trafficking Hotspot Sees Murders PlungeThe Competition...

Tesla (TSLA) has kicked off "Magnificent Seven" earnings, posting beats on adjusted earnings per share and higher gross margins. Ayako Yoshioka, Wealth Enhancement Group senior portfolio manager, joins Morning Brief to discuss what these results mean for the rest of the Magnificent Seven earnings and overall market leadership heading into 2025. Yoshioka explains that there is a greater emphasis on tech sector earnings given its concentration in the S&P 500 (^GSPC) and weight within the Magnificent Seven. However, she notes that CapEx (capital expenditures) spending among hyperscalers will determine their leadership position moving forward. She tells Yahoo Finance, "I think they're going to evaluate it at some point and see whether or not they need to continue at the pace that they've been at over the last few quarters." With AI still being early in its development, Yoshioka argues that it's "going to be a while" before seeing real competition among hyperscalers and chip companies. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Melanie Riehl...

Amazon stock has formed a long consolidation pattern with a buy point at July highs. It will report Q3 results Oct. 31...

We recently published a list of Top 10 Trending AI Stocks in Q4. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other top trending AI stocks in Q4. As LLMs continue to hog data from the open internet for training, publishers are growing concerned about their […]...